Conpet S.A.

COTE.RO · Energy · Annual report 2025-12-31 · 4 reported years · Figures in RON

Market Cap

656.90M RON

Price on 2026-10-13

Average of the Three Values

688.60M RON

The plain average of EPV, Profit and FCFF

Intrinsic / Market Ratio

1.05×

Average / Market Cap, the ratio the list ranks by

Margin of Safety (Average)

+4.6%

1 − Market Cap / Average of the Three Values

Price / Book

0.92×

Market Cap / Book Value as printed (717.62M)

Greenwald Value, Case B: Asset Value

626.17M RON

Earns what its assets cost · -4.9%

Evidence: N is a note in the company's reports, F a line of its financial statements, R a fact from recent research; +n is n more sources. This page reads the company's own reports at its price date; the screener's values, the hollow dots, read the data provider's figures at their own date, so they differ on purpose.

Price vs Value

Every value of the company against the Market Cap on the price date above.

Bottom line

The intrinsic value of 687.91M RON leaves a margin of safety of only 4.6% against the market cap of 656.24M RON, and Profit and FCFF need only fall by 6.8% before the average stops covering the price. Greenwald's value on the case, a reading beside the verdict, is the asset value of 625.54M RON, a margin of -4.9%: it credits no growth, while Profit and FCFF grow at -0.3% and 2.0%, fade to the long-run rate and receive back the capital and all they kept at the end of the projection. This is a fairly priced regulated monopoly in a declining industry, whose value depends on the regulator recovering lost volume through tariffs and on a concession that ends in 2032 being renewed.

← Worth Less← LessWorth More →

¼×½×Market Cap 1×2×4×8×

Book Value

Assets less liabilities, as printed

717.62M RON1.09× Market Cap+8.5% margin

Asset Value

What an entrant would spend to reproduce the assets, less what is owed

626.17M RON0.95× Market Cap-4.9% margin

EPV + Growth Value

From the report's figures

674.31M RON1.03× Market Cap+2.6% margin

Profit

From the report's figures

30% capital at year 15 · 70% 15 years of profit

716.07M RON1.09× Market Cap+8.3% margin

FCFF

From the report's figures

46% capital at year 15 · 54% 15 years of free cash flow, before the net cash or net debt

675.43M RON1.03× Market Cap+2.7% margin

Average of the Three

Uncapped, as the screener averages them

688.60M RON1.05× Market Cap+4.6% margin

Greenwald Value, Case B: Asset Value

The value Greenwald assigns on this case

626.17M RON0.95× Market Cap-4.9% margin

Worth more than the Market CapWorth less than the Market CapScreener (its own figures)Axis in multiples of the Market Cap (656.90M RON), logarithmic.

How Each Value Is Built

The screener's three formulas on the report's own figures. Each card reads the same way: the value as a sum of numbered terms, each term's calculation opened under it, from the reported figures to the value. The verdict rests on their plain average, as the screener ranks; the Greenwald value on the company's case is a reading beside it.

What it is worth

EPV + Growth

674.31M RON

what the normal year's earnings are worth for ever, plus growth that pays

Profit

716.07M RON

15 years of cash the shareholders can take out, and the equity left at year 15

FCFF

675.43M RON

15 years of cash for shareholders and lenders, less what is owed

÷ 3 =

Average Intrinsic Value

688.60M RON

The plain average of EPV, Profit and FCFF

Against the price

Market Cap

656.90M RON

the price on the date above times the shares

Intrinsic Value ÷ Market Cap

1.05×

the ratio the screener ranks by

Margin of Safety

+4.6%

1 − Market Cap / Average Intrinsic Value

Earnings power value plus growth: 674.31M RON

The normal year's NOPAT as if it lasted for ever (the EPV), less what is owed ahead of the shareholders, plus what new investment adds beyond its cost (the growth value).

①EPV of the Equity674.31M RON

+②Growth Value0 RON

=Value674.31M RON

EPV of the Operations (NOPAT over WACC)

673.81M RON

Net Cash to the Shareholders

+500.36K RON

Growth Value

0 RON

Value

674.31M RON

①EPV of the Equity

674.31M RON

②Growth Value

0 RON

Market value

Market Cap656.90M RON

The price on the date above times the shares.

Value vs market

Margin of Safety+2.6%

1 minus the market cap as a share of the value.

Profit value: today's value of the shareholders' equity, from the cash it can pay them (FCFE): 716.07M RON

Fifteen years of free cash flow to equity (FCFE), each brought to today at the cost of equity, plus the equity at year 15 brought to today.

①Present Value of the 15 Years of FCFE500.87M RON

+②Equity at Year 15, Today215.20M RON

=Value716.07M RON

FCFE: the net income left for the shareholders once the business keeps what next year's growth needsEquity reinvestment: the part of the year's net income kept in the business to grow the next year; below zero, capital the business releases to the shareholdersPresent value of the FCFEColoured bars show the FCFE, grey bars the equity reinvestment. With a positive equity reinvestment the two stacked are the year's net income; with a negative one the grey is below zero, capital the business releases, and the net income is the FCFE plus that negative amount. Shaded, years 6 to 10: the ROE on new investment falling to the cost of equity. Axes linear.

①Present Value of the 15 Years of FCFE

500.87M RON

②Equity at Year 15, Today

215.20M RON

Market value

Market Cap656.90M RON

The price on the date above times the shares.

Value vs market

Margin of Safety+8.3%

1 minus the market cap as a share of the value.

FCFF value: today's value of the shareholders' equity, from the cash the firm can pay its shareholders and lenders (FCFF): 675.43M RON

Fifteen years of free cash flow to the firm (FCFF), each brought to today at the WACC, plus the invested capital at year 15 brought to today, less the net debt and claims ahead of the shareholders.

①Present Value of the 15 Years of FCFF365.72M RON

+②Invested Capital at Year 15, Today309.21M RON

+③Net Cash to the Shareholders500.36K RON

=Value675.43M RON

FCFF: the NOPAT left for the shareholders and the lenders once the business reinvests what next year's growth needsReinvestment: the part of the year's NOPAT put back into the business to grow the next year; below zero, capital the business releasesPresent value of the FCFFColoured bars show the FCFF, grey bars the reinvestment. With a positive reinvestment the two stacked are the year's NOPAT; with a negative one the grey is below zero, capital the business releases, and the NOPAT is the FCFF plus that negative amount. Shaded, years 6 to 10: the ROIC on new investment falling to the WACC. Axes linear.

①Present Value of the 15 Years of FCFF

365.72M RON

②Invested Capital at Year 15, Today

309.21M RON

③Net Cash to the Shareholders

500.36K RON

Market value

Market Cap656.90M RON

The price on the date above times the shares.

Value vs market

Margin of Safety+2.7%

1 minus the market cap as a share of the value.

From the Reported Years to the Intrinsic Value

The average of the three values on the years as the report gives them, then what each adjustment moved it by. The formulas stay the screener's; an adjustment only reads a reported line as the books do.

690.01M RON

Average on the reported years

EPV + Growth Value, Profit and FCFF on the years as reported

-1.28M RON

Growth basis chosen

FCFF -3.84M RON

-125.62K RON

Growth by five-year blocks

Profit -376.85K RON

688.60M RON

Intrinsic value

the average the verdict rests on

After	EPV + Growth Value	Profit	FCFF	Average
The reported years	674.31M RON	716.45M RON	679.27M RON	690.01M RON
Growth basis chosen	674.31M RON	716.45M RON	675.43M RON	688.73M RON
Growth by five-year blocks	674.31M RON	716.07M RON	675.43M RON	688.60M RON

Profit growth: the fundamental growth of the reported years. The stable rate was asked, but the reported years already grow less than the stable rate.
FCFF growth: the stable rate (2.0% a year for years 1 to 5, lowered from the reported years' fundamental growth of 2.5%).
The same evidence of an industry in decline applies to FCFF. The company depends wholly on Romanian refinery runs, domestic crude volumes keep falling, and the Petrotel-Lukoil refinery did not restart after its maintenance because of sanctions. The research shows half-year volumes "33,2%" lower than a year earlier. The notes warn of "a gradual decline in longterm volumes". The asset base is also shrinking, since depreciation exceeded additions in the latest year. The concession runs "for a period of 30 years" from 2002. The FCFF reinvestment of the reported years funds the upkeep of a network under contraction, not growth, so the FCFF projection uses the stable rate.
Profit growth by five-year blocks: years 1 to 5 -0.3%, years 6 to 10 -0.3%, years 11 to 15 -0.3%, years 1 to 5’s own, already below the risk-free rate. The return on new capital falls by year 10 to the cost of capital.
FCFF growth by five-year blocks: years 1 to 5 2.0%, years 6 to 10 2.0%, years 11 to 15 2.0%, years 1 to 5’s own, already below the risk-free rate. The return on new capital falls by year 10 to the cost of capital.

Earnings Power vs Assets

Does the business earn more than it would cost to rebuild? Greenwald's test for a moat.

Market Cap

0200.00M400.00M600.00M800.00M

Asset Value

What a newcomer would spend to rebuild it, less what it owes; the bar runs from every asset at the cautious end of its inputs to every asset at the generous end (see Adjusted Balance Sheet)

624.79M – 627.23M

Earnings Power Value

What the business earns, as if it never grew

674.31M RON

If the Protection Ends in 2032

7 years of earnings, then what the company keeps · Renewal expected

311.23M RON

Market Cap

What the market pays for all the shares

656.90M RON

Cost to rebuild (bar: low to high)What it earns, as a value: green above the Market Cap, red belowIf the protection endsMarket CapEarns what it costs: Case BLinear axis, RON.

Earnings Power Value / Asset Value1.08×

0.25×0.80×1.25×4.00×

Logarithmic axis: 0.80× and 1.25× are the same distance from 1×.

Case A: The Assets Earn Too Little

The business earns less than it would cost to rebuild. A newcomer would not build it, so the value is what it earns, not what its assets cost.

Case B: A Normal Business (This Company)

It earns about what its assets cost to rebuild: no moat and no penalty. The value is the asset value.

Case C: Something Protects It

It earns well above what its assets cost. Something keeps newcomers out, and that franchise is worth the difference.

Franchise value

Earnings power value less asset value: what a moat is worth, negative when there is none.

48.14M RON

If the protection ends: the price is 2.11× that value. It is 253.73M of earnings for 7 years at 7.0%, plus 39.25M of cash less debt and claims, less 38.75M of legacy liabilities, plus 57.00M for what stays, discounted. What stays: Owned land, Materials, spare parts and security stocks, Trade and other receivables, Prepaid expenses.

Bear case

The bear case rests on 310.92M RON, the value if the concession is not renewed when it ends in 2032.

Base case

The base case rests on 625.54M RON, the asset value on case B, in a narrow range from 624.17M RON to 626.61M RON.

Bull case

The bull case rests on the intrinsic value of 687.91M RON, the plain average of EPV + growth at 673.63M RON, Profit at 715.35M RON and FCFF at 674.75M RON.

Expected Return

What a buyer at this price earns a year if the business holds: cash returned, organic growth and reinvestment, against the cost of equity.

7.5%

Cash Returned

Earnings Power less the cost of today's debt after tax (its rate × the debt), 47.05M RON, × 104.1% paid out, over the market cap

2.1%

Organic Growth

The stable growth the analysis chose, 2.0% a year, in place of the printed revenue growth of 5.0% the growth basis sets aside, × value over price of 1.05

-0.7%

Reinvestment

-3.90M RON kept beyond what organic growth needs × 1.10 of value created per unit, over the market cap

8.9%

Expected Return a Year

At value equal to price: 8.8%

Against a cost of equity of 7.0%: above it by 1.9%. That is how much of the return the franchise may lose before it earns only its cost.

Paid out: the reported years' dividends and the buybacks beyond the shares issued, over net income, averaged. Value created per unit: the return on capital over the cost of equity. Working capital per unit of revenue: 17.8%.

What Comes Next

Dated events ahead that can matter to a holder, each with the quote that dates it.

2027Regulator-approved framework crude oil transport contract for 2027 appliesRegulation
Either way for holders
The framework contract approved by the regulator sets the terms under which the company contracts transport with OMV Petrom and other shippers, so its terms shape regulated revenue for 2027.
2027Mandate contracts of the executive directors endCorporate action
Either way for holders
The general director and deputy directors serve mandates running until 2027, so the executive team may change when they end.
2032The concession, licence or contract the business rests on endsContract or concession
Either way for holders
The concession agreement was approved for a fixed term. The assets the company builds on the concessioned system pass to the state's public domain when they are amortised or when the agreement ends. The notes say nothing about renewal. The state controls the company, classes the service as of strategic national interest and names it in the national energy plan for future carbon dioxide transport, so renewal is expected. The owned land, stocks, receivables and cash stay with the company in any case.

Earnings Power, Step by Step

Average margin on sustainable revenue, average tax, depreciation above maintenance CapEx.

From Revenue to the Value of the Operations

546.09M RON

Latest Revenue

10.3%

Average Operating Margin, Latest 4 Reported Years

56.21M RON

Sustainable Operating Profit

× (1 −

16.3%

Average Tax Rate

) +

0 RON

Depreciation Above Maintenance CapEx, After Tax

47.05M RON

Earnings Power (NOPAT)

7.0%

Cost of Capital (WACC)

673.81M RON

EPV of the Operations

Depreciation Above Maintenance CapEx, set by the analyst: Most capex is funded by the tariff-collected modernization quota (58.1m, 67.4m and 56.5m, F224/F247/F270), and the depreciation of those assets is matched by quota revenue (66.4m in 2025, N759). Net of the quota, the shareholders' capex (about 18m in 2024 and 17m in 2025) is close to their depreciation (about 22m), on a system used at 34-39% of capacity, so excess depreciation is at most small and zero is the cautious choice.

Average Operating Margin, set by the analyst: Base: the average operating margin of the reported years (12.0% in 2022; 12.3%, 8.2%, 8.7%, F115/F127, F149/F161, F182/F194), the book's way, kept on the assumption that cost-of-service tariffs (N398, N569) recover the lost volume. The regulator raised import tariffs 44.6-46.8% from May 2026, less than requested (R002). Low: the H1 2026 run rate, with net profit of 12.35M on turnover of 235.06M (R005), about a 4.5% operating margin once financial income (F195) is removed.

Average Tax Rate, set by the analyst: The average of the current tax rates of the reported years, 16.2% in 2022 (current tax 11,686,338 over profit before tax 72,138,994, income statement 2022 in Financial-Statement-31.12.2023), 14.5%, 18.4% and 16.0% (F134/F133, F168/F167, F201/F200), close to the statutory 16%; the deferred tax credits of 2024 and 2025 (F169, F202) are timing differences, not a lasting lower tax.

Cost of equity: 5.39% the 10-year government bond in RON + beta 0.23 (the market's) × 7.08% the country's equity risk premium = 6.98%, in the currency of the figures it discounts.

No debt, so the cost of capital is the cost of equity.

The screener's rate, a check: 5.83%.

From the Operations to the Shareholders

EPV of the Operations

673.81M RON

Free Cash

cash the company may use freely; 43.38M restricted left out

+85.72M RON

Debt

financial debt and leases

0 RON

Claims Ahead of the Shareholders

minority interests, a dividend already declared

-46.47M RON

Legacy Liabilities

pensions, lawsuits, environment: inherited from the past

-38.75M RON

EPV of the Equity

674.31M RON

If the Assumptions Were a Step Off

Earnings power value of the equity at other costs of capital and margins.

13 of 25 cells are above the price: the EPV of the equity depends on the assumptions.

WACC ↓ · margin →	9.3%	9.8%	10.3%	10.8%	11.3%
5.0%	853.01M	898.88M	944.75M	990.61M	1.04B
6.0%	710.52M	748.72M	786.93M	825.13M	863.33M
7.0%	608.84M	641.57M	674.31M	707.04M	739.77M
8.0%	532.64M	561.27M	589.90M	618.53M	647.16M
9.0%	473.40M	498.84M	524.29M	549.73M	575.17M

EPV of the equity in RON; the outlined cell is the analysis's own. Green above the market cap (656.90M), red below.

Returns, Payouts and Debt

What each reported year earned, paid to shareholders and owed, as the report prints it, before any adjustment.

Return on Capital, 2025

8.0%

operating profit after tax over book plus net debt

Dividend Yield

8.7%

the latest year's dividends over the Market Cap on the price date above

Paid Out in All, 2025

105.7%

dividends and the buybacks beyond the shares issued, over profit

Net Cash, 2025

129.10M RON

cash above all debt

	2022	2023	2024	2025
Growth and returns
Revenue growth on the year before	—	2.7%	10.0%	2.2%
Operating margin	13.3%	13.7%	9.3%	9.9%
Net margin	13.1%	12.7%	9.2%	9.9%
Return on equity profit over the book at the start of the year	—	9.0%	6.8%	7.4%
Return on capital operating profit after tax over the book plus net debt at the start of the year	—	10.1%	7.1%	8.0%
Capex over depreciation above 1×, the company invests more than it wears out	3.1×	1.6×	1.1×	0.8×
Paid to shareholders
Dividends paid	62.93M RON	57.72M RON	56.95M RON	56.88M RON
Buybacks	0 RON	0 RON	0 RON	0 RON
Shares issued	0 RON	0 RON	0 RON	0 RON
Dividend payout dividends over profit	101.9%	93.6%	115.3%	105.7%
Paid out in all dividends and the buybacks beyond the shares issued, over profit	101.9%	93.6%	115.3%	105.7%
Debt
Debt	0 RON	0 RON	0 RON	0 RON
Cash	127.80M RON	107.85M RON	136.31M RON	129.10M RON
Net debt debt less cash; negative is net cash	-127.80M RON	-107.85M RON	-136.31M RON	-129.10M RON
Net debt over EBITDA years of operating profit before depreciation to repay it; negative is net cash	-1.1×	-0.8×	-1.0×	-0.9×
Interest cover operating profit over the interest on the debt	—	—	—	—

Dividend policy: Under the dividend policy, the Board of Directors proposes to the General Meeting of Shareholders a distribution of between 85 % and 100 % of the net accounting profit; over the last 5 years the company distributed between 94% and 98% of the net accounting profit.

What the Lenders Require

The conditions the lenders set.

The notes print no debt falling due from this year on and no lenders' conditions.

Financial Statements

Every line the reports print, before any adjustment, then what is calculated from them. Open a period for the document it comes from.

Income statement (RON)
Revenues from contracts	472.70M	485.60M	534.15M	546.09M
Earnings from disposal of assets	5.41M	612.72K	—	64.69K
Other revenues	44.47M	55.26M	72.74M	72.17M
Total operating revenues	522.58M	541.48M	606.89M	618.32M
Stocks-related expenses	6.94M	6.55M	6.15M	6.08M
Expenses with energy and water	33.77M	18.62M	20.94M	19.07M
Personnel expenses	181.10M	194.59M	210.40M	221.90M
Value adjustments on fixed assets, less adjustments related to rights of use resulted from leasing contracts	53.13M	61.55M	79.24M	86.04M
Value adjustments for rights of use resulted from leasing contracts	1.99M	2.05M	2.14M	2.18M
Value adjustments of current assets	-767.63K	-239.70K	7.65M	244.59K
Loss from disposal of assets	—	—	91.68K	—
Expenses related to external services	114.36M	127.06M	144.19M	154.76M
Provision adjustments	6.76M	2.45M	12.20M	7.45M
Other expenses	62.47M	62.42M	74.36M	66.68M
Total Operating Expenses	459.75M	475.05M	557.35M	564.41M
Operating Profit	62.83M	66.43M	49.54M	53.91M
Financial Revenues	9.85M	6.70M	6.39M	7.61M
Interest expenses related to leasing contracts	236.41K	175.42K	237.87K	193.23K
Other financial expenses	233.34K	83.88K	94.06K	227.97K
Financial Expenses	469.75K	259.30K	331.93K	421.20K
Financial profit	9.38M	6.44M	6.06M	7.19M
Profit before corporate tax	72.21M	72.87M	55.59M	61.10M
Expenses with current corporate tax	11.70M	10.60M	10.24M	9.78M
Expenses with /(revenues coming from) deferred corporate tax	-1.21M	591.55K	-4.02M	-2.50M
PROFIT OF THE PERIOD	61.73M	61.68M	49.37M	53.81M
Actuarial earnings /(Loss) from discounted benefits granted upon retirement and in case of death	-1.60M	531.67K	1.23M	915.35K
Other elements of the equities - retained earnings	—	—	756.02K	-425.15K
Total other global result elements that will not be subsequently reclassified as profit or loss	-1.60M	35.62M	1.99M	490.20K
Net variation of the modernization quota reserve	17.43M	6.88M	7.85M	-9.50M
Total other global result elements that will not be subsequently reclassified as profit or loss	—	6.88M	7.85M	-9.50M
TOTAL OTHER GLOBAL RESULT ELEMENTS	15.83M	42.50M	9.84M	-9.01M
TOTAL GLOBAL RESULT	77.55M	104.18M	59.21M	44.81M
Earnings per share	7.13	7.13	5.71	6.22
Total other global result elements that will be subsequently reclassified as profit or loss as an earlier report names it	17.43M	—	—	—
Surplus from revaluation of the tangible assets as an earlier report names it	—	35.09M	—	—
Balance sheet, period end (RON)
ASSETS
Fixed assets
Tangible assets	607.63M	671.50M	665.45M	641.81M
Intangible assets	6.86M	5.57M	3.04M	5.48M
Financial Assets	2.54M	2.53M	535.91K	367.44K
Deferred corporate tax receivables	6.16M	—	2.88M	5.20M
Total fixed assets	623.19M	679.59M	671.90M	652.86M
Current assets
Stocks	6.87M	6.53M	6.02M	6.15M
Trade receivables and other receivables	49.24M	53.03M	39.48M	54.34M
Cash and cash equivalents	127.80M	107.85M	136.31M	129.10M
Prepaid expenses	1.25M	698.30K	687.79K	667.54K
Total current assets	185.16M	168.11M	182.50M	190.26M
TOTAL ASSETS	808.36M	847.70M	854.41M	843.12M
EQUITY AND LIABILITIES
Equities
Subscribed and paid-up share capital	28.60M	28.60M	28.60M	28.60M
Legal reserves	5.72M	5.72M	5.72M	5.72M
Revaluation reserves	17.12M	49.89M	43.58M	38.83M
Other reserves	534.43M	548.13M	558.98M	553.00M
Retained earnings	37.19M	37.01M	45.17M	37.66M
Result of the year	61.73M	61.68M	49.37M	53.81M
Total equity	684.78M	731.03M	731.42M	717.62M
Long-term liabilities
Trade liabilities	43.96M	33.12M	26.60M	2.35M
Liabilities to employees	23.09M	14.16M	30.27M	33.13M
Other long-term liabilities	2.75M	2.80M	2.43M	2.82M
Total long-term liabilities	25.84M	29.49M	32.69M	38.30M
Current liabilities
Trade liabilities	—	—	—	21.81M
Current corporate tax	2.00M	1.81M	—	—
Other liabilities	27.60M	28.79M	33.06M	31.84M
Liabilities to employees	—	—	14.29M	14.09M
Short-term provisions	9.80M	9.30M	16.34M	19.46M
Total current liabilities	97.73M	87.19M	90.29M	87.20M
Total liabilities	123.58M	116.68M	122.98M	125.49M
TOTAL EQUITIES AND LIABILITIES	808.36M	847.70M	854.41M	843.12M
Short-term liabilities to employees as an earlier report names it	14.38M	—	—	—
Long-term liabilities to employees as an earlier report names it	—	25.79M	—	—
Deferred Tax Liabilities as an earlier report names it	—	902.40K	—	—
Cash flow (RON)
Cash flows from operating activities:
Proceeds from services supply	510.37M	520.64M	583.51M	585.91M
Proceeds from interests related to banking investments	9.88M	6.58M	6.34M	7.21M
Other proceeds	13.53M	4.26M	8.29M	6.08M
Payments to the suppliers of goods and services	-140.71M	-140.37M	-153.61M	-166.39M
Payments to and on behalf of the employees	-176.76M	-192.40M	-206.95M	-222.02M
VAT payments	-42.26M	-54.36M	-65.06M	-70.90M
Corporate tax payments	-11.75M	-10.79M	-12.23M	-9.38M
Other payments regarding the operating activities	-45.67M	-46.86M	-54.16M	-60.56M
Net cash from operating activity	116.63M	86.70M	106.12M	69.94M
Cash flows from investment activities:
Proceeds from sale of tangible assets	303.65K	621.21K	11.10K	94.59K
Proceeds from modernization quota	57.38M	58.14M	67.51M	56.52M
Payments for purchase of tangible/intangible assets	-172.31M	-104.31M	-85.49M	-73.96M
Net cash from investing activity	-114.63M	-45.55M	-17.96M	-17.34M
Cash-flows from financing activities
Paid dividends	-62.93M	-57.72M	-56.95M	-56.88M
Payments on the lease debt account	-3.02M	-3.20M	-2.50M	-2.72M
Interest payments	-199.08K	-185.54K	-244.19K	-200.42K
Net cash from financing activities	-66.15M	-61.11M	-59.69M	-59.81M
Net increase of the cash and cash equivalents=A+B+C=D2-D1	-64.14M	-19.95M	28.46M	-7.21M
Cash and cash equivalents at the beginning of the period	191.94M	127.80M	107.85M	136.31M
Cash and cash equivalents at the end of the period	127.80M	107.85M	136.31M	129.10M
Calculated from the lines above (RON)	2022	2023	2024	2025
Income Tax Expenses with current corporate tax + Expenses with (revenues coming from) deferred corporate tax + Expenses with /(revenues coming from) deferred corporate tax	10.49M	11.19M	6.22M	7.29M
Capex Payments for tangible/intangible assets + Payments for purchase of tangible/intangible assets	172.31M	104.31M	85.49M	73.96M
Depreciation and Amortisation Value adjustments on fixed assets, less adjustments related to rights of use resulted from leasing contracts + Value adjustments for rights of use resulted from leasing contracts	55.12M	63.60M	81.38M	88.23M
Fixed Assets Tangible assets + Intangible assets	614.49M	677.07M	668.49M	647.29M
Tax Rate Income Tax ÷ Profit Before Tax; a loss year has none	14.5%	15.4%	11.2%	11.9%

Who Owns It

Every holder of 5% or more of the capital the reports and the research name (5% is the share at which holders must disclose), then the rest of the capital.

Statul Român prin Ministerul Energiei (Romanian State by the Ministry of Energy)

State

58.7%

The rest of the capital

holders the reports and the research do not name

41.3%

Peers

The company against listings in the same industry: how the market prices them, what they earn.

Price / Book0.92× vs 1.89× peers' average

Return on Equity7.5% vs 19.5% peers' average

Operating Margin9.9% vs 40.8% peers' average

Peer	Market	Market Cap (USD)	Price / Book	ROE	Op. Margin
WHK WhiteHawk Minerals Corp.	US	681.81M	1.81×	—	-7.4%
0934.HK Sinopec Kantons Holdings Limited	HK	1.17B	0.55×	5.1%	14.4%
TK Teekay Corporation Ltd.	US	1.24B	—	27.1%	46.9%
NVGS Navigator Holdings Ltd.	US	1.30B	1.02×	11.7%	28.5%
5PV.F Esentia Energy Development, S. de R. L. de C. V.	DE	1.38B	1.07×	—	157.3%
FLNG FLEX LNG Ltd.	US	1.51B	2.15×	14.0%	55.7%
TK41.F Tsakos Energy Navigation Limited	DE	1.58B	0.77×	17.2%	41.8%
B3O.F Nordic American Tankers Limited	DE	1.60B	3.35×	25.7%	51.9%
59FE.F Fluxys Belgium SA	DE	1.64B	2.35×	16.2%	22.0%
GLP Global Partners LP	US	1.64B	2.19×	27.2%	1.6%
GEL Genesis Energy, L.P.	US	1.70B	3.75×	22.7%	17.3%
LPG Dorian LPG Ltd.	US	2.20B	1.78×	28.3%	59.9%

Oil & Gas Midstream in the screener: 12 of 54, none listed in the same market (RO), so the closest in size. The company's own figures are from its report (2025): net income over the printed book value, operating profit over revenue.

In Our Strategy

Where the screener ranks the company and whether the strategy would buy it.

Not in what the strategy buys

Its market cap is below its market's floor of 500.00M USD (RO), so it is not among the 17 companies the strategy ranks there.

Market	Companies above the floor	Place by value	Top 25
RO	17	—	No
All markets	5,727	—	No

Place 1 is the cheapest: the highest value over market cap. Only companies above their market's floor count, $1B in every market and $500M in Romania, and a company listed in several markets counts once.

Adjusted Balance Sheet

From the book value the balance sheet prints to the asset value a buyer would count.

What Moves the Book Value

Book Value

assets less liabilities, as printed

717.62M RON

Deferred corporate tax receivables

-1.80M RON

Trade receivables and other receivables

+189.82K RON

2025 dividend paid in 2026

not in the balance sheet

-46.47M RON

Restricted cash (not the owners')

-43.38M RON

Asset Value

at reproduction, less what is owed

626.17M RON

Every Line

As printed, each line with what a buyer would count. Open an asset line for the economic assets it holds, and an asset for the figures and quotes behind its value.

Line	Balance sheet	Adjusted	Change	Why
ASSETS
Fixed assets
Tangible assets	641.81M	641.81M	0.0%	The sum of the economic assets below.
Intangible assets	5.48M	5.48M	0.0%
Financial Assets	367.44K	367.44K	0.0%
Deferred corporate tax receivables	5.20M	3.40M	-34.6%
Total fixed assets	652.86M	651.06M	-0.3%
Current assets
Stocks	6.15M	6.15M	0.0%
Trade receivables and other receivables	54.34M	54.53M	+0.3%
Cash and cash equivalents	129.10M	129.10M	0.0%	The sum of the economic assets below.
Prepaid expenses	667.54K	667.54K	0.0%
Total current assets	190.26M	190.45M	+0.1%
TOTAL ASSETS	843.12M	841.51M	-0.2%
EQUITY AND LIABILITIES
Equities
Subscribed and paid-up share capital	28.60M
Legal reserves	5.72M
Revaluation reserves	38.83M
Other reserves	553.00M
Retained earnings	37.66M
Result of the year	53.81M
Total equity	717.62M	716.01M	-0.2%	The adjusted assets less the liabilities as printed, before what the balance sheet does not carry (below).
Long-term liabilities
Trade liabilities	2.35M	2.35M	0.0%
Liabilities to employees	33.13M	33.13M	0.0%	Legacy liability: Retirement and death benefit obligation (33.09M off the earnings power). It is owed for service employees have already given, which is an inherited claim rather than a cost of running the business from here on.
Other long-term liabilities	2.82M	2.82M	0.0%
Total long-term liabilities	38.30M	38.30M	0.0%
Current liabilities
Trade liabilities	21.81M	21.81M	0.0%
Current corporate tax	—	—	—
Other liabilities	31.84M	31.84M	0.0%
Liabilities to employees	14.09M	14.09M	0.0%
Short-term provisions	19.46M	19.46M	0.0%	Legacy liability: Landowner litigation for pipeline right of way (3.77M off the earnings power). It comes from the legal regime of the land crossed by pipelines built long ago, settled in court case by case. Legacy liability: Fondul Proprietatea claim for unpaid dividends (1.85M off the earnings power). It concerns dividends from a past year and has nothing to do with running the business.
Total current liabilities	87.20M	87.20M	0.0%
Total liabilities	125.49M	125.49M	0.0%
TOTAL EQUITIES AND LIABILITIES	843.12M	841.51M	-0.2%
Not in the balance sheet: Organisation and trained workforce	0	0	—	Kept at book value: no method gave a value. The balance sheet does not carry the organisation, but an entrant would have to build it.
Not in the balance sheet: Concession to operate the National Transport System	0	—	—	No transaction prices this concession, so it gets no lens. Its worth shows in the earnings power.
Not in the balance sheet: 2025 dividend paid in 2026	0	-46.47M	—	Dividends due to shareholders from the 2025 profit, 46,420,754 RON (N732), owed at the valuation date; the market capitalisation is ex-dividend, so that cash is no longer the buyer's.
Restricted cash (not the owners')	0	-43.38M	—	Cash the company holds for a use its owners cannot choose (N727, N684).
ASSET VALUE AT REPRODUCTION, LESS WHAT IS OWED	717.62M	626.17M	-12.7%	The adjusted assets, less the liabilities, claims, legacy amounts the balance sheet does not carry and the restricted cash.

Investor Checklist

The questions to ask of any business, answered from the reports and research, or marked unknown.

Answered

questions

Not applicable

question

Unknown

questions

business

The largest customers, products, suppliers and countries, and their share of revenue.

Revenue rests on one activity, one country and essentially two customers. The newest printed split is for 2024; it predates the Petrotel-Lukoil stoppage, so the current split is not printed.

Customers: the 2024 annual report prints OMV Petrom at 79.5%, Petrotel Lukoil at 19.9% and other customers at 0.6% of sales; it separately prints OMV Petrom at 79.9% of transport revenues.
Products: as we read the reports, nearly all turnover comes from transport services.
Suppliers: as we read the reports, most electricity comes under one supply contract, and the state-owned Hidroelectrica supplies electricity as a related party. No supplier's share is printed.
Countries: the company is "strictly dependent on the level of crude oil processing in Romanian refineries" and is not interconnected with regional systems.

Fixed against variable costs, operating leverage, the main cost lines and what drives them.

The reports print no split between fixed and variable costs. As we read the cost lines, most are fixed or tied to the network, so operating leverage is high: in H1 2026 net profit fell 45.3%, far more than turnover. The regulated tariff is meant to pass costs through, but only with a lag and only as far as the regulator allows.

Personnel: 221,679,297 in 2025, the largest line; as we read the notes, a nearly fully unionised workforce makes it rigid.
External services: 154,602,290, which include rail transport by third parties, a major and rising cost as we read the notes.
Value adjustments on fixed assets: 85,954,799, driven by the investment programme and the revaluation.
Other expenses: 66,614,819, including the modernisation quota expense; the royalty is a fixed percentage of gross transport revenues, and the taxes include a special turnover tax on oil and gas companies.
Energy and water: 19,052,308, a small line.

How revenue, volumes and margins moved through past cycles and shocks.

Revenue has followed tariffs and profit has moved less with it, while volumes have followed refinery runs. The statements cover too few years to show a full cycle, and the sharpest shock is this year's refinery stoppage.

Revenue from contracts: 485,113,609 in 2023, 533,618,409 in 2024 and 545,540,445 in 2025; as we read the notes, revenue rose in 2023 despite lower volumes thanks to higher tariffs.
Operating profit: 66,363,163 in 2023, 49,485,597 in 2024 and 53,859,091 in 2025.
Volumes: the report prints a gradual decrease in domestic crude to 2,81 million tons in 2024, imports rising to 4,32 million tons, and a total of 7,13 million tons.
Refinery revisions: as we read the notes, scheduled revisions at the Ploiești refineries cut 2023 volumes, especially on the import subsystem.
Current shock: in H1 2026 the company transported 2,180 thousand tonnes, 33.2% less than in H1 2025, while net profit fell 45.3% to 12.35 million lei and turnover fell by less.

industry

What could replace the product or shrink the industry: substitutes, technology, energy transition, regulation.

The threat is shrinking demand, not a rival network. The company itself names "a gradual decline in longterm volumes" as a strategic risk unless diversification takes place, and the alternatives it names are still at an early stage.

Energy transition: the report says "the demand for transported crude oil could gradually decrease" as electric vehicles and green technologies spread.
Refinery closures: "With previous refining and petrochemicals closures, transport capacities are already under-utilized."
Rail: rail substitutes for pipelines on part of domestic crude, with approximately 33.5% of domestic production moved by rail, but the company runs that service itself.
Climate regulation: as we read the notes, the company has no Paris-aligned transition plan and its core business is not eligible under the EU Taxonomy, which can limit green financing.
Possible new uses: the national energy plan nominated the company "as a company that can provide CO2 transport through pipelines", and it is studying biofuels or other low-carbon liquids. Neither is yet a business, and no revenue is printed.

moat

Return on equity and on capital over the years in the statements, against the cost of capital.

Returns sit close to the cost of capital, as a cost-of-service tariff intends: 7.7% on equity and 8.3% on capital in the first projected years, against a cost of capital of 7.0%. Printed profit has been 61,616,539, 49,323,047 and 53,760,116 on total equity of 730,294,931, 730,693,250 and 716,903,883 for 2023 to 2025. As we read the notes, most of other reserves is the non-distributable modernisation quota reserve, so printed equity overstates what belongs freely to shareholders.

When the protections expire or could erode: licence or concession end dates, patent expiries, regulatory reviews, contract renewals.

The core protection has a fixed date: the concession was approved in 2002 "for a period of 30 years", so it ends in 2032. The reports do not address renewal; we expect it because the state controls the company and classes the service as strategic, but that is a judgement, and the value without renewal is 310.92M RON.

End of the concession: built goods pass to the State's public domain "on the expiry of the normal operation term or cease of the oil agreement", and as we read the notes the easement rights end with the concession too.
Tariff reviews: OMV Petrom has challenged each successive tariff order, as we read the notes, and those cases await the High Court's ruling in the lead case.
Contract renewal: as we read the notes, the OMV Petrom transport contract is extended month by month through addenda it contests; the regulator approved a framework contract for 2027.
Permits: as we read the notes, the railway safety certificate and a large number of environmental and water permits must be renewed regularly.

earnings

One-off items, accruals against cash, capitalised costs, stock-based pay, provisions built or released.

Reported profit carries large non-cash and regulatory items, and cash conversion is uneven: operating cash flow was 106,016,537 in 2024 and 69,865,645 in 2025, against profit of 49,323,047 and 53,760,116. The notes we read mention no stock-based pay; the directors' variable pay is provisioned in cash.

Modernisation quota: as we read the notes, the expense and the write-back to revenue inflate both sides of the income statement. Other revenues were 72,099,382 in 2025, and the quota collected, 56,463,777, is shown in investing cash flow rather than operating cash flow.
Provisions: provision adjustments were 12,192,689 in 2024 and 7,438,983 in 2025.
Current-asset adjustments: 7,640,692 in 2024, mainly on receivables as we read the notes, against 244,348 in 2025.
Deferred tax: credits of -4,012,030 in 2024 and -2,493,119 in 2025 lowered the tax charge; this file treats them as timing differences and uses the current tax rate.
One-offs: as we read the notes, severance jumped in 2024 and may not recur, and employee profit sharing is a recurring charge.
Capitalised costs: as we read the notes, concession investments are carried as the company's own tangible assets because the service concession standard is not applied.

Capital spending needed just to keep capacity, against growth spending and against depreciation.

The reports print no split between maintenance and growth capital spending. Payments for assets fell from 104,205,104 in 2023 to 85,402,577 in 2024 and 73,882,368 in 2025, while value adjustments on fixed assets rose from 61,484,586 to 79,156,049 and 85,954,799. Quota proceeds of 58,084,160, 67,444,545 and 56,463,777 fund most of that spending, so we read most capital spending as upkeep of a system with spare capacity and take excess depreciation as zero.

balance sheet

Guarantees, purchase commitments, leases, pensions, litigation, environmental and decommissioning duties, obligations at the end of a concession.

The company reports no capital commitments, as we read the notes. Its main exposures are employee benefits, which are on the balance sheet, and tariff refund claims, for which we read no specific provision.

Pensions: retirement benefits of 29,128,507 RON and death benefits of 4,608,971 RON, measured annually by an independent actuary.
Leases: as we read the notes, these cover land, buildings and tank cars, sit inside other liabilities and are the only debt-like financing.
Litigation:
- OMV Petrom claims refunds of tariff differences, suspended pending the lead tariff case; no specific provision is disclosed, as we read the notes.
- Landowner claims carry a provision of 3,774,159 RON.
- The Fondul Proprietatea claim carries a provision of 1,846,058 RON.
Guarantees: as we read the notes, financial assets are mainly guarantees paid to third parties, and guarantees are exchanged with Electrica Furnizare.
Environmental: as we read the notes, accidental pollution recurred at many locations in the latest year and some sites are classed as major-accident hazard sites. No decommissioning provision appears in the notes we read.
End of the concession: built goods pass to the State's public domain; the reports do not quantify any handover duty.
Conditional costs: the state now pays for the Gendarmerie guarding the pipelines, and as we read the notes the company would bear this cost if that ended.
Tax: as we read the notes, the inspection of VAT and profit tax for 2018-2021 ended with no additional liabilities, though the auditor notes that Romanian tax rules remain open to interpretation.

Debt, maturities, covenants, refinancing needs, liquidity.

The company has no bank debt or bonds, as we read the notes; leases are its only debt-like financing. Net debt over EBITDA is -0.91x, and current assets of 190,068,982 stand against current liabilities of 87,110,938. No refinancing need or covenant appears in the notes we read.

Cash: 128,972,007 at the end of 2025, of which 43,336,682 RON is the modernisation quota with a special-use regime, leaving free cash of 85.64M RON.
Dividend: the dividend proposed from 2025 profit is a call on that free cash; this file deducts it as a claim.
Borrowing limits: as we read the notes, the articles cap bond issues, and the board may borrow only within limits set by the extraordinary general meeting.

Assets the business does not need to run: surplus cash, investments, idle land or plant.

This file identifies no excess assets beyond the free cash of 85.64M RON, and the dividend due from 2025 profit claims much of that. The rest of the balance sheet serves operations or is tied to the concession.

Modernisation quota cash: 43,336,682 RON is destined exclusively for works on public-domain goods, so it is not surplus.
Idle pipelines: as we read the notes, inactive pipelines and stations belong to the state's public domain, so they are not the company's to sell.
Land: as we read the notes, much of it serves the headquarters, pipelines and ramps, and part awaits a contribution in kind to share capital.
Financial assets: 367,071, mainly guarantees.

management

Dividends, buybacks, investments and acquisitions over time, and what they returned.

Capital goes to dividends and to quota-funded works on state-owned assets. Paid dividends were -57,664,500, -56,893,975 and -56,825,982 for 2023 to 2025, against profit of 61,616,539, 49,323,047 and 53,760,116, so payout has at times reached beyond the year's profit, drawing on retained earnings and reserves as we read the notes. The latest year's dividends represent 8.7% of the market cap.

Buybacks: none, and the company holds no treasury shares, as we read the notes.
Investment: as we read the notes, most went into assets in the state's public domain under the concession, so its return comes through the regulated tariff.
Acquisitions: the notes we read show none of a business, only land with an industrial railway line bought from OMV Petrom for a loading ramp.
Diversification: as we read the notes, storage and rail plans exist, but no return from them is printed.
Return: the reports print no return on these investments; this file's return on equity for the first projected years is 7.7%.

Minority protection, related-party dealings, the board and its independence (the main shareholders have their own section).

Formal safeguards exist, but the state decides: as we read the notes, the Ministry of Energy mandates its representative for each general meeting, and the company is governed as a public enterprise. Minority shareholders rely on public-enterprise rules, the listing and the articles.

Board: as we read the notes, seven non-executive directors serve four-year mandates running until August 2027; the 2024 report shows a large independent majority, and board members hold no shares.
Board stability: a series of provisional administrators served in 2025 before a new member, later named chairman, was elected in November 2025.
Dilution: a proposed capital increase through a land contribution would have issued more new shares than exist, as we read the notes; the latest attempt failed for lack of quorum, and the matter is still pending, with the valuation basis referred to the Ministry of Energy.
Related parties: as we read the notes, these include electricity purchases from Hidroelectrica and a contract with the state railway company.
Controls: asset deals with directors above a threshold need extraordinary general meeting approval; the auditor issued an unqualified opinion on the statements we read it for, and PKF Finconta holds a three-year appointment.

Who runs it, their record, their incentives, turnover.

Mihaela-Anamaria Dumitrache, previously Deputy Director General, has been Director General since 2 April 2026, with a mandate to 19 October 2027. Her record in the role is too short to judge; the company's record under regulated tariffs reflects the regulator as much as management.

Turnover: the 2024 report shows Dorin Tudora with several consecutive terms as managing director, and as we read the newest source the general director also covers a vacant deputy post for part of 2026.
Incentives: as we read the notes, executive directors work under mandate contracts with performance criteria and variable pay tied to key performance indicators, while board members hold no shares.
Depth: as we read the notes, an ageing workforce creates a succession and recruitment risk for technical staff.
Compliance record: as we read the notes, a Court of Accounts audit produced recommendations reported as implemented, and the company received a fine.

regulation

Who regulates, how prices or tariffs are set, the allowed return, the next review.

The national mining and petroleum regulator sets the tariffs: "The transport service is being supplied under the natural monopoly regime based on the tariff set by A.N.R.M.P.S.G.". The method is based on "the determination of the service cost", and as we read the notes it covers operating costs, depreciation, royalty, the modernisation quota and a reasonable profit margin. The allowed profit rate and the date of the next review are not given in the sources we read.

Domestic tariff: ANRMPSG Order 164/30.04.2026 set it at 155.50 lei per tonne, effective 7 May 2026, up from 146.00 lei per tonne under Order 99/2025.
Import tariffs: the regulator approved increases of about 44.6% for the Arpechim route and 46.8% for the Ploiești basin route.
Contract terms: the regulator approved the framework transport contract for 2027.
Court challenge: as we read the latest statements, OMV Petrom's challenge to the 2022 tariffs was rejected at first instance and is on second appeal at the High Court, with the later cases suspended pending it.
Access: as common carrier, the company must provide free access "on a nondiscriminatory and transparent basis".

Special taxes, state intervention, currency, country risk.

The state is owner, tax collector and regulator all at once, and the largest current shock is geopolitical. Romania's 10-year government bond yield was 7.26% on 13 October 2026, and the research rates the country Baa3 with a 1.87% default spread and a 7.08% total equity risk premium.

Special taxes: as we read the notes, other taxes include a special turnover tax on oil and gas companies under Law 296/2023 and a tax on special constructions; the royalty rate rose in late October 2023.
Sanctions: as we read the notes, the United States sanctioned Lukoil entities and the Petrotel-Lukoil refinery did not restart because of them; Romanian authorities are due to decide on possible restrictions on Lukoil Romania.
State intervention: as we read the notes, the state's representative is mandated by ministerial order for each general meeting, and the state now pays for the Gendarmerie guarding the pipelines.
Currency: tariffs are set in lei; the sources we read do not size any currency exposure beyond some euro-denominated litigation.

technology

The systems the business runs on (control, IT, automation): their state, cyber risk, obsolescence.

The control systems are partly modernised and still being upgraded, as we read the reports. A cyber security incident occurred after the reporting date, and the company reports it was handled without affecting operations.

SCADA: a SCADA expansion project was commissioned in December 2024, while leak detection and SCADA modernisation remain key investments still to be carried out.
ERP: the modernisation tender failed because all offers were non-compliant and was due to be relaunched.
Telecoms and energy: the radio relay and multiplexer networks were being modernised, and the energy telemanagement system is in operation.
Automation: as we read the notes, only part of the pumping stations was fully modernised.

For a technology-driven business: switching costs, network effects, proprietary data, R&D as investment, marginal cost of scale, retention.

This is not a technology-driven business: pipeline technology is standard, and the regulated cost-of-service tariff passes costs through, so its protection comes from the concession and the network's scale.

Age and condition of the physical assets, remaining life, deferred maintenance.

Management assesses the pipeline system's technical condition as appropriate, as we read the 2024 report, but the same reports warn that low use degrades the network and that part of it is old. Remaining life and any figure for deferred maintenance are not printed.

Capacity: nominal capacity of about 27.5 million tons per year is operationally reduced to about 18.75 million tons on approx. 2,200 km of operational pipeline, and the degree of use printed is 38.9%, 34.3% and 39.3% over three years.
Renewal: as we read the notes, the network had a major rehabilitation from 1996 to 2008, the Danube and Borcea crossings were replaced in 2023, and a tank programme is under way.
Age and risk: as we read the notes, old pipelines keep the risk of pollution incidents alive, and corrosion inspections drive the repair budget.
Spending: as we read the notes, additions stayed below depreciation in the latest year and 2024 investment fell short of its programme, which could signal shrinking or deferred work; the reports do not say which.

market

What the price implies, liquidity, analyst coverage, why the market pays what it pays.

The price of 656.24M RON implies roughly what the business earns today: 0.97x of earnings power, with the average covering the market cap at 93.2% of Profit and FCFF. We read this as the market paying for a steady high-yield utility, with little credit for growth and little discount for the concession's end. Analyst coverage is not in the sources we read, and liquidity is not measured; the latest statements note inclusion in MSCI frontier and Romania indices.

Yield: the latest year's dividends represent 8.7% of the market cap, and the file's return a year from today's price is 8.9%.
Book: the market cap stands below the printed equity of 716.90M RON, but much of that equity is the restricted modernisation quota reserve, as we read the notes.
Peers: the nearest listed names are mostly shippers and foreign energy carriers under different regimes, so we give their multiples little weight.

Why the gap might never close.

The margin is thin, and several structural features could stop any gap from closing: returns are capped, the state controls the company, and the industry is shrinking.

Capped returns: a cost-of-service tariff caps what the business can earn at a reasonable profit, so better operations mostly flow to shippers.
Finite concession: the concession ends in 2032, and the goods built on the system pass to the state, so a price resting on perpetual earnings needs a renewal the reports do not address.
Tariff spiral: as we read the notes, a further fall in demand adds pressure on tariffs, and higher tariffs raise the cost of using the system for the few refiners left.
Control: the state decides dividends, investment and management; no sale or restructuring that would unlock value appears in the sources we read.
Dilution: the pending land contribution could hand minority value to the state, depending on the valuation chosen.

decision

The facts that, if observed, would prove the conclusion wrong.

The conclusion assumes tariffs recover lost volume and the concession continues. Any of these observations would prove it wrong.

Earnings: full-year results staying near the H1 2026 pace, when net profit fell 45.3% to 12.35 million lei, despite the tariff rises approved in May 2026.
Concession: a decision or a legal step that leaves the concession unrenewed, or renewed on materially worse terms, as 2032 approaches.
Petrotel: the Petrotel-Lukoil refinery staying shut for good, or Romanian authorities imposing restrictions on Lukoil Romania that end those volumes.
Courts: a High Court ruling for OMV Petrom in the lead tariff case, which would open the suspended refund claims.
OMV Petrom: a volume cut or a move of crude to rail or other routes by the customer that provides most of transport revenue.
Tariffs: a later regulator order that refuses to pass through the cost of idle capacity.
Payout: the state ending its high payout, or a land contribution issued at a dilutive valuation.
New costs: the state ceasing to pay for the Gendarmerie that guards the pipelines.

	Question	Answer
business
	The largest customers, products, suppliers and countries, and their share of revenue.	Revenue rests on one activity, one country and essentially two customers. The newest printed split is for 2024; it predates the Petrotel-Lukoil stoppage, so the current split is not printed. Customers: the 2024 annual report prints OMV Petrom at 79.5%, Petrotel Lukoil at 19.9% and other customers at 0.6% of sales; it separately prints OMV Petrom at 79.9% of transport revenues. Products: as we read the reports, nearly all turnover comes from transport services. Suppliers: as we read the reports, most electricity comes under one supply contract, and the state-owned Hidroelectrica supplies electricity as a related party. No supplier's share is printed. Countries: the company is "strictly dependent on the level of crude oil processing in Romanian refineries" and is not interconnected with regional systems.
	Fixed against variable costs, operating leverage, the main cost lines and what drives them.	The reports print no split between fixed and variable costs. As we read the cost lines, most are fixed or tied to the network, so operating leverage is high: in H1 2026 net profit fell 45.3%, far more than turnover. The regulated tariff is meant to pass costs through, but only with a lag and only as far as the regulator allows. Personnel: 221,679,297 in 2025, the largest line; as we read the notes, a nearly fully unionised workforce makes it rigid. External services: 154,602,290, which include rail transport by third parties, a major and rising cost as we read the notes. Value adjustments on fixed assets: 85,954,799, driven by the investment programme and the revaluation. Other expenses: 66,614,819, including the modernisation quota expense; the royalty is a fixed percentage of gross transport revenues, and the taxes include a special turnover tax on oil and gas companies. Energy and water: 19,052,308, a small line.
	How revenue, volumes and margins moved through past cycles and shocks.	Revenue has followed tariffs and profit has moved less with it, while volumes have followed refinery runs. The statements cover too few years to show a full cycle, and the sharpest shock is this year's refinery stoppage. Revenue from contracts: 485,113,609 in 2023, 533,618,409 in 2024 and 545,540,445 in 2025; as we read the notes, revenue rose in 2023 despite lower volumes thanks to higher tariffs. Operating profit: 66,363,163 in 2023, 49,485,597 in 2024 and 53,859,091 in 2025. Volumes: the report prints a gradual decrease in domestic crude to 2,81 million tons in 2024, imports rising to 4,32 million tons, and a total of 7,13 million tons. Refinery revisions: as we read the notes, scheduled revisions at the Ploiești refineries cut 2023 volumes, especially on the import subsystem. Current shock: in H1 2026 the company transported 2,180 thousand tonnes, 33.2% less than in H1 2025, while net profit fell 45.3% to 12.35 million lei and turnover fell by less.
industry
	What could replace the product or shrink the industry: substitutes, technology, energy transition, regulation.	The threat is shrinking demand, not a rival network. The company itself names "a gradual decline in longterm volumes" as a strategic risk unless diversification takes place, and the alternatives it names are still at an early stage. Energy transition: the report says "the demand for transported crude oil could gradually decrease" as electric vehicles and green technologies spread. Refinery closures: "With previous refining and petrochemicals closures, transport capacities are already under-utilized." Rail: rail substitutes for pipelines on part of domestic crude, with approximately 33.5% of domestic production moved by rail, but the company runs that service itself. Climate regulation: as we read the notes, the company has no Paris-aligned transition plan and its core business is not eligible under the EU Taxonomy, which can limit green financing. Possible new uses: the national energy plan nominated the company "as a company that can provide CO2 transport through pipelines", and it is studying biofuels or other low-carbon liquids. Neither is yet a business, and no revenue is printed.
moat
	Return on equity and on capital over the years in the statements, against the cost of capital.	Returns sit close to the cost of capital, as a cost-of-service tariff intends: 7.7% on equity and 8.3% on capital in the first projected years, against a cost of capital of 7.0%. Printed profit has been 61,616,539, 49,323,047 and 53,760,116 on total equity of 730,294,931, 730,693,250 and 716,903,883 for 2023 to 2025. As we read the notes, most of other reserves is the non-distributable modernisation quota reserve, so printed equity overstates what belongs freely to shareholders.
	When the protections expire or could erode: licence or concession end dates, patent expiries, regulatory reviews, contract renewals.	The core protection has a fixed date: the concession was approved in 2002 "for a period of 30 years", so it ends in 2032. The reports do not address renewal; we expect it because the state controls the company and classes the service as strategic, but that is a judgement, and the value without renewal is 310.92M RON. End of the concession: built goods pass to the State's public domain "on the expiry of the normal operation term or cease of the oil agreement", and as we read the notes the easement rights end with the concession too. Tariff reviews: OMV Petrom has challenged each successive tariff order, as we read the notes, and those cases await the High Court's ruling in the lead case. Contract renewal: as we read the notes, the OMV Petrom transport contract is extended month by month through addenda it contests; the regulator approved a framework contract for 2027. Permits: as we read the notes, the railway safety certificate and a large number of environmental and water permits must be renewed regularly.
earnings
	One-off items, accruals against cash, capitalised costs, stock-based pay, provisions built or released.	Reported profit carries large non-cash and regulatory items, and cash conversion is uneven: operating cash flow was 106,016,537 in 2024 and 69,865,645 in 2025, against profit of 49,323,047 and 53,760,116. The notes we read mention no stock-based pay; the directors' variable pay is provisioned in cash. Modernisation quota: as we read the notes, the expense and the write-back to revenue inflate both sides of the income statement. Other revenues were 72,099,382 in 2025, and the quota collected, 56,463,777, is shown in investing cash flow rather than operating cash flow. Provisions: provision adjustments were 12,192,689 in 2024 and 7,438,983 in 2025. Current-asset adjustments: 7,640,692 in 2024, mainly on receivables as we read the notes, against 244,348 in 2025. Deferred tax: credits of -4,012,030 in 2024 and -2,493,119 in 2025 lowered the tax charge; this file treats them as timing differences and uses the current tax rate. One-offs: as we read the notes, severance jumped in 2024 and may not recur, and employee profit sharing is a recurring charge. Capitalised costs: as we read the notes, concession investments are carried as the company's own tangible assets because the service concession standard is not applied.
	Capital spending needed just to keep capacity, against growth spending and against depreciation.	The reports print no split between maintenance and growth capital spending. Payments for assets fell from 104,205,104 in 2023 to 85,402,577 in 2024 and 73,882,368 in 2025, while value adjustments on fixed assets rose from 61,484,586 to 79,156,049 and 85,954,799. Quota proceeds of 58,084,160, 67,444,545 and 56,463,777 fund most of that spending, so we read most capital spending as upkeep of a system with spare capacity and take excess depreciation as zero.
balance sheet
	Guarantees, purchase commitments, leases, pensions, litigation, environmental and decommissioning duties, obligations at the end of a concession.	The company reports no capital commitments, as we read the notes. Its main exposures are employee benefits, which are on the balance sheet, and tariff refund claims, for which we read no specific provision. Pensions: retirement benefits of 29,128,507 RON and death benefits of 4,608,971 RON, measured annually by an independent actuary. Leases: as we read the notes, these cover land, buildings and tank cars, sit inside other liabilities and are the only debt-like financing. Litigation: OMV Petrom claims refunds of tariff differences, suspended pending the lead tariff case; no specific provision is disclosed, as we read the notes. Landowner claims carry a provision of 3,774,159 RON. The Fondul Proprietatea claim carries a provision of 1,846,058 RON. Guarantees: as we read the notes, financial assets are mainly guarantees paid to third parties, and guarantees are exchanged with Electrica Furnizare. Environmental: as we read the notes, accidental pollution recurred at many locations in the latest year and some sites are classed as major-accident hazard sites. No decommissioning provision appears in the notes we read. End of the concession: built goods pass to the State's public domain; the reports do not quantify any handover duty. Conditional costs: the state now pays for the Gendarmerie guarding the pipelines, and as we read the notes the company would bear this cost if that ended. Tax: as we read the notes, the inspection of VAT and profit tax for 2018-2021 ended with no additional liabilities, though the auditor notes that Romanian tax rules remain open to interpretation.
	Debt, maturities, covenants, refinancing needs, liquidity.	The company has no bank debt or bonds, as we read the notes; leases are its only debt-like financing. Net debt over EBITDA is -0.91x, and current assets of 190,068,982 stand against current liabilities of 87,110,938. No refinancing need or covenant appears in the notes we read. Cash: 128,972,007 at the end of 2025, of which 43,336,682 RON is the modernisation quota with a special-use regime, leaving free cash of 85.64M RON. Dividend: the dividend proposed from 2025 profit is a call on that free cash; this file deducts it as a claim. Borrowing limits: as we read the notes, the articles cap bond issues, and the board may borrow only within limits set by the extraordinary general meeting.
	Assets the business does not need to run: surplus cash, investments, idle land or plant.	This file identifies no excess assets beyond the free cash of 85.64M RON, and the dividend due from 2025 profit claims much of that. The rest of the balance sheet serves operations or is tied to the concession. Modernisation quota cash: 43,336,682 RON is destined exclusively for works on public-domain goods, so it is not surplus. Idle pipelines: as we read the notes, inactive pipelines and stations belong to the state's public domain, so they are not the company's to sell. Land: as we read the notes, much of it serves the headquarters, pipelines and ramps, and part awaits a contribution in kind to share capital. Financial assets: 367,071, mainly guarantees.
management
	Dividends, buybacks, investments and acquisitions over time, and what they returned.	Capital goes to dividends and to quota-funded works on state-owned assets. Paid dividends were -57,664,500, -56,893,975 and -56,825,982 for 2023 to 2025, against profit of 61,616,539, 49,323,047 and 53,760,116, so payout has at times reached beyond the year's profit, drawing on retained earnings and reserves as we read the notes. The latest year's dividends represent 8.7% of the market cap. Buybacks: none, and the company holds no treasury shares, as we read the notes. Investment: as we read the notes, most went into assets in the state's public domain under the concession, so its return comes through the regulated tariff. Acquisitions: the notes we read show none of a business, only land with an industrial railway line bought from OMV Petrom for a loading ramp. Diversification: as we read the notes, storage and rail plans exist, but no return from them is printed. Return: the reports print no return on these investments; this file's return on equity for the first projected years is 7.7%.
	Minority protection, related-party dealings, the board and its independence (the main shareholders have their own section).	Formal safeguards exist, but the state decides: as we read the notes, the Ministry of Energy mandates its representative for each general meeting, and the company is governed as a public enterprise. Minority shareholders rely on public-enterprise rules, the listing and the articles. Board: as we read the notes, seven non-executive directors serve four-year mandates running until August 2027; the 2024 report shows a large independent majority, and board members hold no shares. Board stability: a series of provisional administrators served in 2025 before a new member, later named chairman, was elected in November 2025. Dilution: a proposed capital increase through a land contribution would have issued more new shares than exist, as we read the notes; the latest attempt failed for lack of quorum, and the matter is still pending, with the valuation basis referred to the Ministry of Energy. Related parties: as we read the notes, these include electricity purchases from Hidroelectrica and a contract with the state railway company. Controls: asset deals with directors above a threshold need extraordinary general meeting approval; the auditor issued an unqualified opinion on the statements we read it for, and PKF Finconta holds a three-year appointment.
	Who runs it, their record, their incentives, turnover.	Mihaela-Anamaria Dumitrache, previously Deputy Director General, has been Director General since 2 April 2026, with a mandate to 19 October 2027. Her record in the role is too short to judge; the company's record under regulated tariffs reflects the regulator as much as management. Turnover: the 2024 report shows Dorin Tudora with several consecutive terms as managing director, and as we read the newest source the general director also covers a vacant deputy post for part of 2026. Incentives: as we read the notes, executive directors work under mandate contracts with performance criteria and variable pay tied to key performance indicators, while board members hold no shares. Depth: as we read the notes, an ageing workforce creates a succession and recruitment risk for technical staff. Compliance record: as we read the notes, a Court of Accounts audit produced recommendations reported as implemented, and the company received a fine.
regulation
	Who regulates, how prices or tariffs are set, the allowed return, the next review.	The national mining and petroleum regulator sets the tariffs: "The transport service is being supplied under the natural monopoly regime based on the tariff set by A.N.R.M.P.S.G.". The method is based on "the determination of the service cost", and as we read the notes it covers operating costs, depreciation, royalty, the modernisation quota and a reasonable profit margin. The allowed profit rate and the date of the next review are not given in the sources we read. Domestic tariff: ANRMPSG Order 164/30.04.2026 set it at 155.50 lei per tonne, effective 7 May 2026, up from 146.00 lei per tonne under Order 99/2025. Import tariffs: the regulator approved increases of about 44.6% for the Arpechim route and 46.8% for the Ploiești basin route. Contract terms: the regulator approved the framework transport contract for 2027. Court challenge: as we read the latest statements, OMV Petrom's challenge to the 2022 tariffs was rejected at first instance and is on second appeal at the High Court, with the later cases suspended pending it. Access: as common carrier, the company must provide free access "on a nondiscriminatory and transparent basis".
	Special taxes, state intervention, currency, country risk.	The state is owner, tax collector and regulator all at once, and the largest current shock is geopolitical. Romania's 10-year government bond yield was 7.26% on 13 October 2026, and the research rates the country Baa3 with a 1.87% default spread and a 7.08% total equity risk premium. Special taxes: as we read the notes, other taxes include a special turnover tax on oil and gas companies under Law 296/2023 and a tax on special constructions; the royalty rate rose in late October 2023. Sanctions: as we read the notes, the United States sanctioned Lukoil entities and the Petrotel-Lukoil refinery did not restart because of them; Romanian authorities are due to decide on possible restrictions on Lukoil Romania. State intervention: as we read the notes, the state's representative is mandated by ministerial order for each general meeting, and the state now pays for the Gendarmerie guarding the pipelines. Currency: tariffs are set in lei; the sources we read do not size any currency exposure beyond some euro-denominated litigation.
technology
	The systems the business runs on (control, IT, automation): their state, cyber risk, obsolescence.	The control systems are partly modernised and still being upgraded, as we read the reports. A cyber security incident occurred after the reporting date, and the company reports it was handled without affecting operations. SCADA: a SCADA expansion project was commissioned in December 2024, while leak detection and SCADA modernisation remain key investments still to be carried out. ERP: the modernisation tender failed because all offers were non-compliant and was due to be relaunched. Telecoms and energy: the radio relay and multiplexer networks were being modernised, and the energy telemanagement system is in operation. Automation: as we read the notes, only part of the pumping stations was fully modernised.
	For a technology-driven business: switching costs, network effects, proprietary data, R&D as investment, marginal cost of scale, retention.	This is not a technology-driven business: pipeline technology is standard, and the regulated cost-of-service tariff passes costs through, so its protection comes from the concession and the network's scale.
	Age and condition of the physical assets, remaining life, deferred maintenance.	Management assesses the pipeline system's technical condition as appropriate, as we read the 2024 report, but the same reports warn that low use degrades the network and that part of it is old. Remaining life and any figure for deferred maintenance are not printed. Capacity: nominal capacity of about 27.5 million tons per year is operationally reduced to about 18.75 million tons on approx. 2,200 km of operational pipeline, and the degree of use printed is 38.9%, 34.3% and 39.3% over three years. Renewal: as we read the notes, the network had a major rehabilitation from 1996 to 2008, the Danube and Borcea crossings were replaced in 2023, and a tank programme is under way. Age and risk: as we read the notes, old pipelines keep the risk of pollution incidents alive, and corrosion inspections drive the repair budget. Spending: as we read the notes, additions stayed below depreciation in the latest year and 2024 investment fell short of its programme, which could signal shrinking or deferred work; the reports do not say which.
market
	What the price implies, liquidity, analyst coverage, why the market pays what it pays.	The price of 656.24M RON implies roughly what the business earns today: 0.97x of earnings power, with the average covering the market cap at 93.2% of Profit and FCFF. We read this as the market paying for a steady high-yield utility, with little credit for growth and little discount for the concession's end. Analyst coverage is not in the sources we read, and liquidity is not measured; the latest statements note inclusion in MSCI frontier and Romania indices. Yield: the latest year's dividends represent 8.7% of the market cap, and the file's return a year from today's price is 8.9%. Book: the market cap stands below the printed equity of 716.90M RON, but much of that equity is the restricted modernisation quota reserve, as we read the notes. Peers: the nearest listed names are mostly shippers and foreign energy carriers under different regimes, so we give their multiples little weight.
	Why the gap might never close.	The margin is thin, and several structural features could stop any gap from closing: returns are capped, the state controls the company, and the industry is shrinking. Capped returns: a cost-of-service tariff caps what the business can earn at a reasonable profit, so better operations mostly flow to shippers. Finite concession: the concession ends in 2032, and the goods built on the system pass to the state, so a price resting on perpetual earnings needs a renewal the reports do not address. Tariff spiral: as we read the notes, a further fall in demand adds pressure on tariffs, and higher tariffs raise the cost of using the system for the few refiners left. Control: the state decides dividends, investment and management; no sale or restructuring that would unlock value appears in the sources we read. Dilution: the pending land contribution could hand minority value to the state, depending on the valuation chosen.
decision
	The facts that, if observed, would prove the conclusion wrong.	The conclusion assumes tariffs recover lost volume and the concession continues. Any of these observations would prove it wrong. Earnings: full-year results staying near the H1 2026 pace, when net profit fell 45.3% to 12.35 million lei, despite the tariff rises approved in May 2026. Concession: a decision or a legal step that leaves the concession unrenewed, or renewed on materially worse terms, as 2032 approaches. Petrotel: the Petrotel-Lukoil refinery staying shut for good, or Romanian authorities imposing restrictions on Lukoil Romania that end those volumes. Courts: a High Court ruling for OMV Petrom in the lead tariff case, which would open the suspended refund claims. OMV Petrom: a volume cut or a move of crude to rail or other routes by the customer that provides most of transport revenue. Tariffs: a later regulator order that refuses to pass through the cost of idle capacity. Payout: the state ending its high payout, or a land contribution issued at a dilutive valuation. New costs: the state ceasing to pay for the Gendarmerie that guards the pipelines.

See the other companies on the same three values

This page reads one company from its reports. The list ranks every company on the same formulas, from the screener's figures.

Open the list