Romanian Transgaz Posts First-Quarter Profit Drop on Costs

Romania’s natural-gas grid operator Transgaz SA (TGN) said its profit fell 11 percent in the first quarter from a year earlier on rising costs and lower revenue.

Net income dropped to 173.5 million lei ($50 million) from 194.9 million lei a year earlier, the Medias, Romania-based company said today in an earnings release sent to the Bucharest Stock Exchange.

The state-owned company’s revenue fell 0.5 percent to 472.2 million lei as it transported lower volumes of natural gas in the first quarter, while expenses rose 7.4 percent from January through March to 260.2 million lei, according to the statement.

“Total revenue fell short of the level reported in the first quarter of last year by 2.4 million lei, mainly because the company transported about 92 million cubic meters of natural gas less than it did in the same period of last year,” Transgaz said in the statement.

To contact the reporter on this story: Irina Savu in Bucharest at isavu@bloomberg.net.

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net

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