Romanian state-run natural gas pipeline operator Transgaz Medias (TGN.RO) Friday said its net profit fell 3.8% on the year to 255.2 million lei ($84.5 million) in the first half, due to higher costs, news agency Mediafax reports.

In January to June last year, Transgaz posted a net profit of RON265.4 million.

Transgaz said total expenditure increased 10.8% on the year to RON458.9 million in the first half, mainly due to higher personnel and equipment costs, according to the financial report.

Overall revenue advanced at a slower pace to RON764 million, from RON728 million in the first six months of 2010.

Gas transport rose by 3.7 million megawatt hours to 73.7 million MWh in the first half, Transgaz said.

The company reported sales of RON712.6 million in January to June, up 3% from RON690.5 million in the same period a year ago.

Transgaz was listed on the Bucharest Stock Exchange at the beginning of 2008. The Economy Ministry owns a 73.5% stake, investment fund Fondul Proprietatea has almost 15% of its shares and the rest is distributed among minority shareholders.

The ministry said Thursday that an additional 15% stake would be listed in
Bucharest by the end of December.

On Thursday, Transgaz closed down 0.17% at RON177 a share.