Romanian gas transmission company Transgaz said on Wednesday its net profit fell 12% on the year to 199.3 million lei ($50.3 million/44.8 million euro) in the first quarter of2015,on lower revenues.
Operating revenues fell11% on the year to 522.7 million lei, while total revenues also fell by 11%, to 526.8 million lei, Transgaz said in its unaudited first-quarter report.
Total expenses fell by an annual 9% to 232.6 million lei in the first quarter.
Commenting on the figures, Raiffeisen Bank said in a note to investors it rates the news as positive for the share price of Transgaz, sincethe results were above estimates due to lower operating costs."We are impressed by the evolution on the costs side. We will probably have to revise lower our revenues estimate given the decline in volumes, but the reduction should be more than offset by lower costs."
Raiffeisen Bank also said it is keepingits 'buy' recommendation and target price of340 lei for the shares of Transgaz.
Blue chip Transgaz was changing hands flatat 269.5lei by 0928 CET on the Bucharest Stock Echange.