Bulgargaz reported a profit of BGN 21 million 685 thousand in the first 6 months of 2021

Bulgargaz reported a profit of BGN 21 million 685 thousand in the first 6 months of 2021. This is clear from the published interim condensed financial statements of the company.

"The result of the company's activity is profit after tax in the amount of BGN 21,685 thousand (as of June 30, 2020: profit in the amount of BGN 21,611 thousand)," the report states. The document outlines both the financial condition of the company, the cash flows or in general the condition of Bulgargaz for the first half of 2021.

Revenues and expenses

The realized revenues from Bulgargaz for the period up to the end of June this year amount to BGN 640,689 thousand. (BGN 640 million 689 thousand). For comparison, at the same time in 2020 the company's revenues were BGN 356,978 thousand (BGN 356 million 978 thousand).

The increase is BGN 283,711 thousand (BGN 283 million 711 thousand) or 79.48%. Net profit from operating activities is BGN 22,484 thousand (ie BGN 22 million 484 thousand), (as of 30.06.2020 it is BGN 22 324 thousand), which is an increase of 0.72%, indicated in the report.

As it is clear from the document, the public provider's expenses increase along with the revenues. Thus, as of June 30, 2021, according to the report, they amount to BGN 617,951 thousand (BGN 617 million 951 thousand). For comparison, as of June 30 last year, the expenses amounted to BGN 334,428 thousand (BGN 334 million 428 thousand), which is an increase of 84.78% or BGN 283,523 thousand (283 million 523 thousand BGN).

The cost of natural gas sold has the largest relative share, as at the end of June this year they increased almost twice - to BGN 622,553 thousand (BGN 622 million 553 thousand) compared to BGN 329,902 thousand (BGN 329 million 902 thousand) for the indicated period of the last year.

Bulgargaz also reported an increase in the cost of external services by 40.33%, which is due in particular to the storage of natural gas.

"The result of operating activities is a profit of BGN 22,484 thousand (BGN 22 million 484 thousand) as of 30.06.2021 (as of 30.06.2020: profit of BGN 22 324 thousand), which is an increase of BGN 160 thousand or 0.72%.

After recording the financial revenues and expenses as of 30.06.2020 the financial result before taxes amounts to BGN 24 242 thousand (as of 30.06.2020 items: profit BGN 24 055 thousand), which is an increase of 187 thousand BGN or 0.78% ", the report states.

Purchased quantities

The main supplies of natural gas, guaranteeing the consumption of the company's customers are provided through long-term contracts with suppliers from the Russian Federation and Azerbaijan.

During the reporting period, a total of 16,002,097 MWh of gas was purchased. This represents an increase of 32.86% or 3,957,681 MW. For comparison, in the same period of 2020 the purchased gas was in the volume of 12 044 416 MWh.

The sold quantities of gas are 17,503,640 MWh compared to 13,229,269 MWh as of June 30 last year. This is an increase of 32.31% or 4,274,371 MWh. The increase in sales is mainly due to the higher consumption of customers in the sectors "Energy", "Distribution Companies", "Organized Exchange Market".

Respectively, of the purchased quantities of 16 002 097 MWh, those of imports are in the volume of 15 910 955 MWh. For comparison, in the same period of 2020 they amounted to 11,936,406 MWh. Under balancing contracts, they amount to 91,102 MWh compared to 83,131 MWh for the same period in 2019.

In the part of extraction and injection of natural gas, Bulgargaz reminds that in order to ensure the security and continuity of the supply of blue fuel for customers, the company reserves capacity in the underground gas storage Chiren (owned by Bulgartransgaz). The report states that pumped quantities in the amount of 2 686 621 MWh until the end of the period of filling the repository, which is until October 15 this year. The commitment is that in 2021 the amount will be 185,554 MWh compared to the quantities pumped in the previous 2020.

Sales

The natural gas sold by Bulgargaz as of June 30 this year is 32.3% more than the same period last year, or 4,274,371 MWh, according to the company. Thus, if in the reporting period of 2020 the sold blue fuel was in the volume of 13 229 269 MWh, then in 2021 it will increase to 17 503 640 MWh. The increase in sales is a result of the increased consumption of customers, mainly in the Energy sector, Construction materials, Distribution companies.

From the published data, the change in the direction of increasing sales on the organized stock market by 569.47 percent is actually impressive. In particular, sales of the largest volumes are due to the Gas Release Program. In the part of the organized stock market, the jump in sales in the first half of 2021 compared to the same time in 2020 is 283.55%.

The company's data show that the main consumers of gas remain energy companies, chemical companies and distribution companies.

Among the risk factors for the company's activities mentioned in the report are the sale of natural gas at a regulated price lower than the purchase, trade and other receivables and liabilities and the currency risk.