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Romgaz seeks to withdraw from two blocks in Slovakia, buy stake in another one
Romanian natural gas producer Romgaz [BSE:SNG] said on Thursday it will seek its shareholders' approval to withdraw from two blocks in Slovakia and to take over an 8.3% stake in Svidnik block after the withdrawal of JKX Oil&Gas, seenews.com informs.
Romgaz will ask its shareholders to approve its withdrawal from Snina and Medzilaborce blocks in Slovakia, it said in statement filed to the Bucharest Stock Exchange, BVB.
It will also seek to receive at no cost the 8.33% share of JKX's participating interest in Svidnik block, following its withdrawal from the concession agreements in relation to Slovakian blocks Snina, Medzilaborce and Svidnik.
The final decision will be made during an extraordinary shareholders meeting scheduled on May 22.
Romgaz owns a 25% share in the Svidnik-Medzilaborce-Snina blocks, alongside Alpine Oil&Gas with 50% and JKX Oil&Gas with 25%.
Romgaz's net profit surged 82.4% year-on-year to 1.868 billion lei ($496 million/401 million euro) in 2017 on the back of higher gas and electricity sales and lower expenses.
Total revenues rose 35% on the year in 2017, reaching 4.58 billion lei, mainly driven by the sales of natural gas and underground gas storage services as well as electricity production.
Total investments rose 57% to 781.7 million lei in 2017, below the 1.14 billion lei investment target in 2017.
The government owns 70% of Romgaz's share capital, with the balance of 30% in free float on the BVB.
Shares of blue-chip Romgaz traded 2.79% higher at 34.95 lei lei by 1049 CET on Thursday.