Romgaz Listing on the Bucharest Stock Exchange

A significant moment for the Romanian capital market and the national energy sector took place on November 19, 2024: National Natural Gas Company Romgaz has listed its first issue of international corporate bonds worth EUR 500 million on the Bucharest Stock Exchange (BVB).

This transaction underlines the strategic importance of Romgaz as a key player in the country’s energy security and as a driver for the development of investments in energy infrastructure. Basically, a number of 500,000 bonds have been issued, having a nominal value of EUR 1,000, a fixed interest rate of 4.75%/year and maturity in 2029.

Romgaz, the largest producer and supplier of natural gas in Romania, has demonstrated its commitment to sustainable development by launching this bond issue, which will finance projects of national importance, such as: The Neptun Deep project, Romania’s most ambitious offshore project in the Black Sea, the modernization of the compressor stations and the development of the Caragele block, as well as the connection of the new Iernut power plant to Transelectrica and the National System, a project that will allow Romgaz to enter the electricity market.

At the listing event, Romgaz CEO Razvan Popescu emphasized the importance of this step: “This listing is a landmark moment for Romgaz, demonstrating our commitment to sustainable growth and strategic investments. The bonds not only support our projects, but also confirm the confidence of international investors in the company and our development plans. Romgaz remains a pillar of trust in the national energy sector, and this bond issue is just the beginning of a continuous process of development and innovation.”

 

National and regional implications

First of all, we are talking about increasing Romania’s energy security, because investments in increasing natural gas production, diversifying supply and modernizing infrastructure are vital in a complex regional context, where energy transition is a priority. The Neptun Deep project is a conclusive example of Romgaz’s commitment to the valorization of national energy resources. This project will bring major benefits, helping to reduce Romania’s dependence on imports and strengthen Romania’s position as an energy leader in the region.

The second relevant aspect relates to supporting the energy transition, as Romgaz not only maintains its leading position in natural gas production, but is also expanding its activities into electricity production. The new Iernut power plant, which will become fully operational in 2025, is an important step in the transition to a low-carbon economy.

Last, but not least, by listing the bonds on the Bucharest Stock Exchange, Romgaz consolidates the local capital market, offering investors new opportunities to invest capital.

“Romgaz remains an example of a company that contributes significantly to the development of the Romanian capital market, being an important player in promoting the Romanian market to the status of an emerging market,” said Radu Hanga, President of the BVB.

 

Investment targets for 2025

Romgaz has ambitious plans for 2025, estimating investments of almost EUR 1 billion. Half of this amount will come from funds raised through the bond issue.

The company’s main priorities include: the completion of the Neptun Deep project, which will enter the exploitation phase, the modernization of the production infrastructure to increase efficiency and capacity and the expansion on the electricity market through the completion and commercial operation of the Iernut power plant.

 

Financial results for 9m/2024

On November 15, 2024, Romgaz had a market capitalization of RON 21.2 billion. According to the nine-month financial results, the company’s consolidated net profit amounted to RON 2.27 billion, up 4.84% compared to the same period last year.

The company’s turnover at the end of the first 9 months of 2024 amounted to RON 5.6 billion, equivalent to a 17% decrease compared to the same period of the previous year, as natural gas production increased by 5%.