RWE Transgas’ 2005 net profit declined by almost a third over the previous year, but the company said that it had expected strong growth during 2006. The poor growth in 2005 was because in the last quarter of the year, the Energy Regulation Office (ERU) set natural gas prices too low. The ERU took the detrimental impact this had on RWE Transgas into account in 2006, and offered the company compensation.
The company said that, in addition, the re-introduction of the regulation of end prices for natural gas had had a positive effect on its results. All in all, RWE Transgas’ total revenues grew by 22% in 2006 over 2005 to reach over CZK85 billion. In addition, the company’s domestic customer base increased by 18,710 in 2006, to reach almost 2.3 million.
Martin Herrmann, chairman of the board and CEO of RWE Transgas, said: We are preparing a range of new price products and services for customers, and we are convinced that we can be equally successful on the open market.
Our main competitive advantage is the capability of guaranteeing stable and secure natural gas supplies, he added, in reference to the extension of the company’s contract with Russia’s Gazprom Export until 2035.
