Good afternoon. Let's start by a short presentation of the financial results at the 30th of June, 2024 , and the factors that determined such results. The profit of the comprehensive income, individual comprehensive income, is doubled as compared to last year and increased by 120 million RON, mainly on account of the increase in the operating revenue of 2,058 million RON, and the increase in a lower extent of the operation expenses by 131 million RON. The factors that determine this evolution will be presented further on. A detailed analysis of the profit from operation is presented in the following slide.
Mainly, the increase in revenue is determined by the increase in the transmission revenue by 310 million RON, and an increase of 149% as compared to the previous period. This increase is determined mainly by the increase of the transmission tariffs of the approval of the regulated revenue for the gas transmission activity after a period of two years when such revenues have been frozen. The transit revenue from international transmission decreased by 58 million RON compared to the previous period, determined mainly that the due to the fact that the agreement concluded with Gazprom Export had a completion deadline, December 31, 2023, there were no revenues in 2024 from this contract. The royalty expenses increased by RON 100 million , approximately.
The increase is determined by the increase in the percentage of the royalties from the previous year, from 0.4% from the turnover to 0.5% from the turnover. Details of the factors that influenced the revenues, the evolution of the revenues, is in slide seven. As I said, after a period of two gas years, in which the gas tariff has been frozen, starting from the first of October, 2023, the transmission tariff have been revised according to the tariff methodology. The revenue increased from RON 1.41 billion to RON 1.647 billion.
At the same time, I would like to mention that for May 2024, the transmission tariff was approved and the regulated tariff as well for 2024, amounting to RON 2.005 billion. So the revenues were mainly influenced by the following factors: by the capacity booking tariff by RON 2,074 , with a positive influence of RON 330 million. The capacity excess revenue higher by RON 70,000. This increase was influenced by the obtaining some revenues from the premium. As for the revenues from balancing, the balancing activity is neutral for Transgaz, does not generate profits or losses for the gas transmission company. The revenue from the balancing and the revenues from the balancing activity.
As for the financial revenues, they decreased by RON 22,000 , mainly of, on account of the registration of the discounting of the regulated value, compared to the same period of last year. As for the expenses and the influence of the expenses-
The increase of the cost comes from the royalty cost increase. The percentage regarding royalty increasing to 11.5%. In general, these are the main factors which determine the evolution of the Transgaz factors. The increase is 200% compared to the previous year. This is a summary of the presentation of the financial results. If you have questions, I would be happy to answer them. Let's see if there are questions.... We have in the presentation the development plan which is submitted at the Energy Regulatory Authority. Although it was submitted to public debate, we decided to present it here. Mr. Octavian Duma would like to ask a question.
Good afternoon. Thank you for your presentation. I am from BT Capital Partners. I wanted to ask you for the operating costs beside the royalty. I saw that the costs regarding maintenance and transport also increased pretty much. It was somewhere around RON 40 million at the second half. If you could tell us a few words regarding this increase.
Let me start with the maintenance. Transgaz activity and the revenue and costs are seasonal. Transmission revenue being mainly achieved in the wintertime, while the maintenance costs are achieved in the summertime, when we can work, starting with April until October, November.
I understand. Thank you.
Is there another question?
For clarification, you asked about the cost evolution regarding the consolidated statements or the separate statements.
If we discuss about the consolidated results, the operating costs increase comes from the fact that Vestmoldtransgaz took over the activity of operation of the entire transmission system in Moldova, starting with September the previous year. These operating costs did not exist last year. It's only starting from September that this activity was taken over. So the increase of the costs results from the maintenance contract concluded by Vestmoldtransgaz with the provider of the maintenance services. I understand. It makes sense. I refer to the consolidated statements.
Thank you.
Please, if you have another question.
Good afternoon. Thank you for your presentation. I also wanted to ask about this maintenance and transport costs. I understand that they are higher due to the activity of Vestmoldtransgaz. Is this a new reality to have higher costs for this category, or is it something more specific to this semester?
Yes, also revenue and expense are higher in Moldova regarding the activity of Vestmoldtransgaz. The transmission operator in Moldova has a regulated revenue, similar to what happens in the case of the Romanian transmission operator. It has costs and revenue from transmission services. Thank you.
Another question regarding the budget. In the first half of the year, you exceeded the value budgeted for the annual profit. Would you please tell me how you see the evolution of the net profit?
I'd rather not tell you an estimation for the end of the year, but we'll have a constant trend. This increase will be maintained. Why would this increase be supported? 'Cause it comes from the transmission revenue. It was the same increase that was recorded in June, and we expect to maintain it until the end of the year.
Okay.
But, an exact value, I couldn't, tell you something about this. Thank you very much.
The last question would be regarding investment expenses. I saw news in the press that you received EUR 100 million, if I'm not mistaken. Could you please detail how do you see the investment expenses for this year, and if such an amount is related to the values received earlier, of which we have spoken for in the first semester?
The investment expenses have a best estimate of, the investments is found in the presentation of the project, which is below in the presentation. You can find everything here. Are the values presented in the development plan, the 10-year development plan? We received EUR 100 million. Contracts were signed for EUR 100 million for, to finance four projects, of which the higher amount, EUR 85 million, is related to the project Black Sea- Podișor.
This is the project that has the highest value in the investment plan for 2024 and 2025. So I would say that three quarters of such funds will be received this year, and the difference will be received next year. It is just an estimate, because it depends on the flow of approval for such payments by the ministry, but we estimate that 3/4 of this amount will be received this year as part of the Black Sea-Podișor project. Starting with the pipeline will be constructed in the end of the year, and next year, the special project and the test for commissioning will be performed.
Will we see this investment in the revenue expense, the regulated asset base of the company for 2025 , 2026? I don't know if you have seen. We've published on the Transgaz site the information related to the regulated revenue, the detail, the information which are public, related to the regulated asset base, and the regulatory revenue related to 2024 , 2025 . You can find this information on Transgaz site. They are available at the transmission detail section.
Yes, thank you.
And the last question related to the investment, annual investment expenses: Do you expect to complete the project, the budget?
Yes, we hope to comply with the budget for this year.
So it would mean investment costs are pretty high in the second semester?
Yes. Yes. You see that we contracted a financing line, a syndicated loan, for RON 8.9 billion to finance six major investment projects. Such a investment line ensures the financing for the next two calendar years, for a period of twenty-four months. So we are prepared to invest and to finance the investments we will make.
Okay, thank you. These were all my questions.
You're welcome. Are there any other questions, please?
Did you receive any written questions?
No, not so far. If there are any additional questions, we are here to answer. If there are no other questions... And if you have any other question, you can ask them subsequently by email.
We will prepare the answer and submit them to you as soon as possible, with documents, so as to be able to perform all the necessary analysis. Are there any other questions? It appears there aren't any. If there aren't any questions, thank you very much for being here, and we are available for any subsequent questions after the completion of the conference. So as I said, we are available. Please send them by email, and we will reply by email. Thank you very much. Have a nice day. Goodbye. Goodbye. Thank you. Have a nice day!