The natural gas transmission company Transgaz reported figures for 1Q 2011 came in line with expectations. Revenues stood at RON 457 mn, fully in line with our estimate, as quantities transported reached 4.74 bcm, compared with 4.76 bcm our projection.
The operating profit stood 8% higher than expected at RON 243 mn on slightly lower than expected grid losses costs and lower maintenance expenses. Higher than foreseen financial losses drove the net profit closer to our estimate, at RON 194.8 mn, 3% above our forecast.
Given that the results met our expectations we view them as neutral, therefore we maintain our RON 289.5 target price and "hold" recommendation.