ANNUAL REPORT OF “TRANSGAZ” MANAGEMENT INDIVIDUAL ...

SNTGN “TRANSGAZ” SA Medias Annual Management Report for 2007
1,200.00
1,000.00
thousand lei
800.00
600.00
400.00
Total revenues
Total expenses
200.00
0.00
2005 2006 2007
Total revenues 800.73 982.30 1,064.24
Total expenses 625.67 696.01 794.91
The total revenues scored an increase over the analysed period, mainly due to:
The adjustment of the regulated tariffs for the gas transmission services;
The increase in the revenues from delivery of import gas received from the Russian
Federation in consideration for international gas transit services.
The total expenses incurred were compliant to the extent provided in the revenue and
expense budget. The raise of such expenses was mostly caused by:
The increase in the volume of works for the NTS rehabilitation and maintenance in
order to ensure its operation under safety conditions;
The change of the royalty share for the concession of the national transmission
system from 5% to 10% of the revenues from gas transmission and international
gas transit activities;
The increase in personnel expenses (salaries, contributions to salary related funds,
profit sharing of the salary earners) in compliance with GEO no. 79/2001,
respectively the correlation of salary accruals with the labour output growth.
The gross profit is lower by 5.92%, as compared to the achievements of 2006, due to
the fact that revenues for 2007 increased by 8.34%, and expenses by 14.21%. Such
lower profit was influenced by the approval and application of new regulated
transmission tariffs, with a 3 months’ delay (starting with October 1 st , 2007 instead of
July, 1 st 2007), as a consequence of the failure to establish in due time the regulated
rate of return on capital (RoR) for the second regulatory period (July 1 st , 2007 – June
30 th , 2012). We hereby specify that the regulated revenue not achieved in the last
quarter of 2007 shall be recovered by the transmission tariff adjusted as of July 1 st ,
2008, according to the methodology approved by ANRE.
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