Volintiru, Romgaz: “GEO 114 cuts 20-25% from turnover and profit in 2019”

Romgaz, one of the most profitable state-owned companies in Romania, expects lower turnover and profit this year due to the new GEO 114 introduced by the government and the capped gas prices.

Romgaz estimates a decline of its turnover by 20-25 percent this year compared with 2018 and a reduction of its profit by 420 million RON, CEO Adrian Volintiru said.

Last year, Romgaz posted a turnover of 3.4 billion RON and EBITDA of 1.6 billion RON. The government has recently introduced a tax on bank assets of 0.3 percent from January 1st, 2019, and capped the retail and corporate gas price at 68 RON/Mwh.