Behalf of Mr. Ion Sterian, Our thanks for your.
Work and activity throughout the year and years being together with Transgaz. Important, your.
Questions and our relationship help us to improve our activity and we would like to thank you, want to conclude this.
I.
We would like to assure you that Transgaz, as you are well aware, will make all its best efforts to perform and to attain its objectives set in terms of investment, development, investment and the relationship with the investor. Thank you again and team that you already know our Chief Financial Officer, Mr. Marius Lupean, the Director of Investor Relations and Sustainability, Mr. Cătălin Tuță, and my colleagues from the Investor Relations Division and Ms. Elena Sasu from the Budget and Finance Division. I would like to invite Mr. Lupean to deliver the presentation and then we will answer all your questions. Thank you. Marius, you have the floor.
Thank you.
Good afternoon. We will start by the presentation of the interim financial statements as at 30 September 2025 and then we will proceed with the question and answer session. The presentation is posted on Transgaz's website and can be accessed and downloaded from Transgaz's website. We will start the presentation by the statement of the individual comprehensive result as at 30 September, which mainly impacts the consolidated payments of Transgaz. As you have seen, the financial results are very good as December, as compared to the previous year, the gross profit had an increase of 37% and 388% more than last year. We will present the factors that contributed to this development. The revenues from the balancing activity recorded an increase of 137 as compared to the previous year. An increase of RON 560 million compared to the previous year.
Revenues were mainly influenced by the increase of the revenue of capacity booking that are higher by RON 460 million than the previous year and obtaining a higher revenue by RON 57 million from the commodity component compared to the previous year. The gas quantity transmitted in the first nine months of 2025 are higher by 14% as compared to the same period of the previous year. The revenues obtained from capacity booking are higher by RON 460 million mainly due to.
The capacity booked higher by 14 million.
Megawatt with a positive influence.
The.
Capacity booking revenue higher, with a positive influence of RON 37. The revenues from the auction premium are higher by RON 10 million as compared to the same period of the previous year.
Other operating revenue decreased by RON 1.6 billion. Regarding the activity from balancing, revenue increased by RON 128 million mainly based on trading price, higher, with a positive influence of RON 98 million and the higher quantity with a positive influence of RON 30 million. As you may know, the balancing activity is a neutral activity for Transgaz because we as a transmission system operator does not record the gain or loss from the balancing activity, which is a neutral activity financially. Regarding revenue from the construction activity are lower by RON 500 million. Regarding financial revenue, they have a positive influence of RON 146 million mainly based on the recording of the updating of the value of the regulated assets with the inflation rate of 8.45%. Regarding costs, they increased by 109% as compared to last year.
Our company made savings of RON 54 million mainly on the technological consumption costs with the provision for risks and charges and revenue from impairment of receivables. We recorded exceedings mainly on the royalty calculated based on the revenue. The higher the cost, the higher the royalty. These are the main factors that led to the results of Transgaz. A positive result is also recorded by the company where Transgaz holds shares. Vestmoldtransga z who registered a very good result in September this year compared to last year. The comprehensive result statement shows an increase of the gross profit of 430% as compared to last year. Based on the results recorded by Transgaz and also on the results obtained by Vestmoldtransgaz . Compared to last year, the net profit increased by 471%. These are the factors that determine this evolution.
The increasing of the quantities and the revenue from the transmission activity. I propose to go to the questions and answers section of the meeting.
Good afternoon. Can you hear me? Yes, we can. Ioana Andrei speaking from UniCredit. Regards. Thank you for your presentation. I would like to start by asking about the activity in Moldova. I saw that the consolidation is presented together with Eurotransgaz. Can you tell me at the level of the third quarter which were the results for Moldova? We will communicate you the result. The results are very good, but we will communicate to you the division and as compared to the individual statement, so that you have a clear view of the consolidated results. Eurotransgaz, you can also have the result by difference. The result of Eurotransgaz is very low per total. You can consider it towards zero. I may say you can find out the result by difference related to quarter three.
I ask because in theory, at the level of the nine months in on a bit from this segment of RON 81 million versus RON 83 million related to the first quarter loss of RON 1.5 million may have been no, Transgaz had no losses in this period. We will communicate the results related to the quarter three. Perfect. If I may, can you please explain us or guide us related to the correction we can expect in the next gas year as compared to the gas year 2025, 2025 and for the gas year that just started. Yes, for the gas year that just started, there was a VTP adjustment of RON 57 million which is already in the budget approved for 2025-2026, RON 2.3 million. What remains as Delta VT, an additional RON 300 million.
Such RON 300 million, which in theory will appear in 2026, 2027, we will add half from the current gas year. What happened basically for the current statement was an exception. No, such RON 300 million would be staggered for the subsequent years. It is for ANRE to approve this. Such delta are approved for breakdown over a period of several years. A period of several years. Can you provide an estimate? Maybe two, three years. The best estimate would be for two years because this is how Delta VT was approved previously. This RON 300 million is what remained after the correction for the entire year 2024, 2025. In theory, it has already been divided. RON 300 million will be seen in 2026, 2027. No, they will be seen 2026-2027, maybe 2028 if it is approved for a two-year period.
For the current gas year, if I remember correctly, initially you said that it was a correction around RON 260 million. In the correction presented for the current year, only RON 89 million appeared. What were actually the positive corrections that led to this correction of the revenue? Yes, the adjustments are presented in the material that is published on Transgaz website related to the structure of the revenue. Yes, it is a part of a royalty component from the previous years. This is the main adjustment. The royalty was 0.4% and increased to 11.5%. The difference of adjustment, the increase in the percentage, was made after the Gas Year started. That value, the royalty increase, was recovered entirely through the regulated revenue. Thank you very much. I will have one more question if you can answer.
Maybe I did not analyze it in detail regarding the commodity increase in the third quarter. Out of my calculation it is 20% per quarter. Can you explain why such a high commodity increase? Yes, there is much interest in using the transmission capacity made available by Transgaz both for the country and interconnection point Csanádpalota. The interconnection with the gas transmission system operating in Hungary, where the capacity is close to 100% booked, and also for the Republic of Moldova, where the capacity is close to 100% used. Thank you very much. That's all from me.
We have a question on chat. I saw that you approved today the financial indicators for 2025-2029. Please detail exactly the indicators. Today the General Assembly approved the indicators according to the calendar of the company and are mentioned exactly as provided in the specific legislation on corporate governance and adapted to the dimension. Transgaz has commitments for the period of the mandate 2025-2029. If you have specific questions regarding one indicator or another, we could reply in writing. Detailing our answer would mean that we consume our time. If you have a question on a specific indicator, I can say that they are constructed with obeying the requirements of ANRE people through the specific legislation. We have another question on chat. What does mean for Transgaz?
The signature of the approval for the Route 2 and Route 3 to increase the use of the Trans- Balkan Corridor and to ensure the connection of the gas sources from Greece and Azerbaijan.
We.
Have three transmission routes ensuring transmission of capacity, a significant transmission capacity to supply gas to Ukraine. The approval of these routes means an additional revenue for Transgaz. First of all, it ensures transmission and energy security to supply Ukraine with gas and also a transmission revenue for all the transmission operators along the corridor. Another question, I'm interested in an updated RAB value. The value is public and is published on Transgaz website where the structure of the regulated revenue is presented for gas year 2025-2026 and is RON 8.6 billion at 30 September. If the pipeline Black Sea Shore was included in RAB, this is another question. Yes, it was included in the regulated asset base. I am Laura Simion from BRD.
I'd like to return to the correction of RON 300 million which does not include the correction for the efficiency gain which is around RON 60 million in this year, this gas year. It will be the same in this period. Yes, this Delta is Delta VT to which those RON 60 million are added from the efficiency gain of the correction for the following years. Yes, it's correct. Regarding the regulated asset base on 30 September this year, is there anything included from the Mintia project? Yes, the Mintia project is also included in the regulated asset base. Regarding the results for the three quarters, you had quite an important saving regarding the budget and the cost of employees as compared to the budget. What is behind this and do you expect to have the same situation in the last quarter this year?
The comparison we have to present in the budget, the salary costs and in the financial statements the cost of personnel are capitalized. They are capitalized to the value of the investments made by Transgaz. These costs must be presented in total according to the financial laws. In the last quarter of this year they should be lower than the budget. Yes. Regarding Route 2 and Route 3 for gas deliveries to Ukraine, does it mean that the former transit pipelines will be used for this quantities? Yes, but 2 and 3 had no reverse flow. Do they have reverse flow? Do all the three. All of the three pipelines have reverse flow? Yes.
Ms. Irina Railean and I would like to ask some questions. Thank you. The first question is related to correction. Is something relevant that now that you have the numbers, the achieved numbers for the last gas year, is there something relevant in terms of correction? In addition to what we have already discussed related to Delta VT efficiency, royalties, is there something in Romania worth mentioning? Can you tell us some corrections related to Moldova, related to regulated revenue? What amounts to expect there? No, there are no other additional elements related to the fourth regulatory period. As for Moldova as well, we do not expect other corrections related to the regulated revenue. As you know, Vestmoldtransgaz invested from 2017 and had more years of not regulated, not achieved revenue.
The revenues which were achieved in addition in 2025, 2024 were not subject to the component of Delta VT. They are older. Yes, they are older. Okay, because the positive and negative are cancelled, you do not expect anything significant? No, I understood. Thank you. Related to the Trans- Balkan route, if you can provide us more real and practical context of what is happening. Who understood that the LNG terminal from Greece is operational? Yes, there are two terminals in Greece which are operational. Yes, I know there were some revisions. Yes, Alexandroupolis was under revision, but it was always functional, operational at the moment in Romania. Are there gas flows going through Ukraine from such LNG in Greece? Yes, there is capacity booking for November as well. The capacity was booked for Route 1 on the entire corridor from Greece to Ukraine for such product.
Route 1, capacity booking annual or no. The route product is offered only monthly and is offered after all the other products are offered, including the monthly one. There is no quarterly or annually? No. For the routes for this product, route product 1, 2, 3, only monthly products are offered and they are offered in the last day of Monday of the month for the following month. Do you have an estimate of how margin % is booked? Estimates, maybe real calculation that you have seen in November? As to the interest? Yes, we have information and bookings were good to say so. As I said, capacity is offered only available. Capacity is offered only after the annual, quarterly and monthly capacities booked firmly. This route product is offered. What is the difference? That the same gas pipeline you can book, as you said, monthly.
But you said that after it was booked. When do they make such bookings? Because this is a residual capacity that remains. It is not very clear for me how it works. According to the European calendar. European regression. That is a calendar. Annual capacity is offered in June, one time a year it offered per year. There is a calendar. Then it is the quarterly capacity. That is why for November it is only monthly. The following quarterly booking will be in a few months. Yes, you are right. As I said, the route products are offered after the annual product was offered. After the quarterly and monthly product is booked, the route product is offered next Monday. The product route one for December is offered. The firm product for December was already offered the past month. The residual capacity. Let's not say residual.
The capacity that is not booked after this product is offered as a route product. I understood. There is an interest, you said. High interest, you said. Yes, there is an interest for this capacity. On the same route are the gas that go to Csanádpalota. Or that it's internal? No, the route product, route one, is from Greece, through Bulgaria, Romania, Moldova, and Ukraine. Without access to the virtual trading points. The firm products are those who offer access to all the virtual trading points. In Romania, some gas volumes from Greece enter Romania for the route. They are not connected. There is an interconnection. No, let's explain. Such gas flows through T1. It is a product that's not discharged in these virtual trading points. Bulgaria, Romania, Moldova. It's downloaded in Greece and goes to Ukraine.
If Romania imports from Greece, it can import for standard products. Standard products on the same physical route? Yes, on the same pipeline. Route 1 is after the products are booked. Yes, but coming back to Csanádpalota related to the firm products. I want you to understand. Is there an impact, the additional volumes that you have seen in this quarter? Are there imported volumes through other points and exported to Hungary? Yes, imported through Negru Vodă and exported to Hungary. For Bulgaria, maybe you know better. Bulgaria, the gas that comes from Greece can enter from Negru Vodă or other points, other interconnections. Does it matter for them? Do they have some restriction related to infrastructure? Unfortunately, the restriction is because we can offer a higher capacity. The bottleneck is in Bulgaria, but they are implementing. They are making developments to increase the capacity.
No, in Negru Vodă the Transgaz capacity is higher. Transgaz can ensure a higher capacity. As a business perspective, what advantages does Ukraine have for using such a route? Only in terms of diversification or use of several transmission routes. There are also routes from Poland, Lithuania which are least expensive, but they are limited, they are not cheaper. The prices are comparable to Route 1. Do you refer to capacities? The Trans- Balkan route seems to be higher. Thank you for your answers. You're welcome. We have a question from Mrs. Daniela Popov. What investments do you expect to be included in the RAB in the following year? I think that the best estimate you can find is to check the development plan, the investment in the development plan. Because there you can see the deadlines for implementation and the project and their implementation deadlines are described.
To use the information in that plan from Mr. Cristian Petre. Hello. We congratulate you for the results. For clarification, the 300 million are negative correction and the 300 million for efficiency gain. I do not know what you understand from negative correction is a revenue achieved in addition to the regulated revenue, which in the following year will be with a minus. The amounts entered in Transgaz's accounts.
Please, if you have any other questions. If not, I'll pass the floor to Mrs. Ghidiu.
I'd like to state that regarding the Ten-Y ear Network Development Plan, which is published on our company's website and as you said, they can see there the investments on progress and their completion time. The regulatory authority approved the revision of the plan. The important thing is that we are going to start working at the next issue of the plan. That's why it's good to consult it all the time. Regarding the business and development perspectives of our company. We will make the investments undertaken in 2013, 2024 and investments in 2025 total EUR 2.54 billion. Our company development strategy will continue as always with completed products, commissioned products, competitive products for development, modernization and expansion of the infrastructure for the gas transmission system Transgaz.
Visionary leadership is helping us very much to be the same team of professionals, able to make performance on the capital market. We thank you very much in the name of Mr. Ion Sterian, our Director General, also for your analysis reports. We thank you also for your questions and we remain open. Maybe we did not have enough time to answer to your questions, but we are ready to answer by email in detail for all the activity and every detail regarding Transgaz activity. We wish you a lot of health and hope to hear you soon. Thank you very much.