Romgaz to invest over 15 billion RON in 2020-2025, share price rises

Romgaz share price is rising after the company published its Strategy for Development and Investments for 2020-2025, which involves a total of over 15 billion RON.

“Investments play a key role in reducing the natural decline in production, both by discovering new hydrocarbon reserves and by improving the current recovery, by rehabilitating, developing and modernizing existing facilities, but also in capitalizing on new opportunities for growth and diversification,” said Adrian Volintiru, CEO Romgaz. “Thus, the investment program for the reference period will be oriented mostly towards natural gas production (about one third of the amount), associations / partnerships in offshore projects (Black Sea) and electricity production-storage (another third of the amount, respectively 5.4 billion RON), diversification – petrochemistry and electricity production, the difference up to 15.69 billion lei total investments for the next 5 years.”

Despite the difficult period (warm winter, COVID-19 pandemic) and the reduction of gas prices and turnover, Romgaz has managed a 22 percent decrease in costs, generating in the first quarter a profit higher by 114 million RON than the budgeted one.