Bulgargaz ended the first 9 months of 2021 with a profit of BGN 32 million. Compared to the first 9 months of last year, it increased by 11.47%. This is clear from the interim report on the company's activities. However, the company reports a negative cash flow from operating activities. The company again declares its intention to enter other markets. The report identifies the need to improve the functioning of the regulated market, as well as the gas exchange, in order to ensure the predictability of supplies and the execution of natural gas transactions to be secured and guaranteed. The decisions require a combination of actions by Bulgargaz, the independent regulator and the state, the report said.
The result of operating activities is a profit of BGN 32,826 thousand (BGN 32 million 826 thousand) as of September 30, 2021, the report states. This is an increase of BGN 3,379 thousand (BGN 3,379 thousand). For comparison, in the same period of 2020 the public supplier of natural gas reported a profit of BGN 29,447 thousand (BGN 29 million 447 thousand).
After recording the financial income and expenses as of September 30, the financial result is a profit of BGN 33,772 thousand (BGN 33 million 772 thousand), which is an increase of BGN 2,622 thousand (6 million 622 thousand) or 8.46%, it is clear from the data in the report.
Revenues and expenses
The revenues realized by the company increased by a significant 149.09% and reached BGN 1,123,574 thousand (BGN 1 billion 123 million 574 thousand). The increase is of BGN 672,505 thousand (BGN 672 million 505 thousand). . For comparison, during the reporting period of the previous 2020 they amounted to BGN 451,069 thousand (BGN 451 million 069 thousand).
The net profit from operating activities is BGN 33,211 thousand (BGN 33,211 thousand) and increases by 11.42%, according to the experts who prepared the report.
Accordingly, an increase in costs is reported, with a significant 158.83%. Thus, for the period up to the end of September this year they reached BGN 1,090,363 thousand (BGN 1 billion 090 million 363 thousand) compared to BGN 421,261 thousand (BGN 421 million 261 thousand) last year. This serious growth, according to the report, is due to the cost of natural gas.
Despite these seemingly positive results, the company reported a negative net cash flow from operating activities - BGN 97,503 thousand (BGN 97 million 503 thousand), while at the same time in the previous 2020 it was positive (168 144 thousand BGN or 168 million 144 thousand BGN). It is due to the difference between receipts from customers for paid and sold natural gas, paid taxes other than income tax and other expenses. The reported cash flows from investing activities are positive, reported by the company, but as it becomes clear they are decreasing. The net cash flows from financing activities are negative.
Purchased and sold quantities
45% more natural gas was bought and sold by Bulgargaz by the end of September, according to the data from the interim report.
The total amount of natural gas purchased by Bulgargaz as of September 30, 2021 to meet the needs of customers compared to the same period last year increased by 7,861,406 MWh or 45.05% - to a volume of 25,311,757 MWh (17 450 351 MWh last year). 53.64% of these quantities were purchased from imports, from a virtual outlet of the gas transmission network of Bulgartransgaz - 57.31%.
The quantities sold were 25,038,442 MWh compared to 17,275,428 MWh, which is an increase of 7,763,014 MWh or 44.94%. The higher sales growth is due to high customer consumption in the Energy, Distribution Companies, Exemption Program and Organized Stock Market sectors. Significant growth is reported in sales under the Gas Release Program - by 703.42% and on the Organized Exchange Market - by 383.98%
An increase is also reported in terms of extracted and pumped quantities of blue fuel in the underground gas storage in Chiren. According to the report at the end of September this year, the extracted quantities of natural gas amounted to 2,465,567 MWh, which is 133,787 MWh or 5.21% compared to the same period last year (2,331,780 MWh). The pumped quantities are 243,234 MWh more (2,501,067 MWh as of 30.09.2020).
As before, Bulgargaz points out in its interim report that the main factors that risk the company's activities are the sale of natural gas at a regulated price, lower than the purchase, trade and other receivables and liabilities and currency risk.