Czech gas pipeline operator Net4Gas posted a CZK 9 million profit last year, returning from a steep loss

State-owned gas pipeline operator Net4Gas posted a net profit of CZK 9 million last year, recovering from a loss of CZK 1.7 billion the year before. The company’s revenue also rose significantly, increasing 41 percent year on year to CZK 5.1 billion. Gas transmission volumes, however, fell again last year. This is according to Net4Gas’ annual report.

Net4Gas operates 4,000 kilometres of pipelines, five compressor stations and around a hundred transmission stations, including three at the borders. State-owned ČEPS bought the company the year before last. The final purchase price depends on the company’s performance and its meeting set financial targets within a specified period. It should not exceed CZK 5 billion.

According to the company’s management, last year was marked by stabilisation following the extreme fluctuations in gas flows in 2023 and the suspension of payments from Russia. „Although we recorded a significant improvement compared with the previous year, full stabilisation is still ahead of us,“ Net4Gas management said.

The company viewed the securing of reliable gas supplies to Czechia from new sources and the gradual decline in market gas prices positively. „Current developments confirm that natural gas will remain an important part of the European energy mix in the coming years,“ Net4Gas management said.

The company also highlighted an upgrade to its rating by Fitch and a successful arbitration in its dispute with Gazprom over the Russian company’s debts for leasing pipelines. It also underlined its plans to develop hydrogen infrastructure.

Despite the improved financial results, the volume of gas transported through domestic pipelines continued to decline last year. It amounted to 8.82 billion cubic metres, compared with around 10 billion cubic metres the year before. In 2022, it was around 30 billion cubic metres. According to the company, the decline was caused mainly by the absence of Russian gas transit through Czech territory and by other changes in gas flows in Europe, which are a geopolitical consequence of Russia’s invasion of Ukraine. Almost three-quarters of last year’s transported gas volume was therefore intended for domestic consumption.

Net4Gas holds the exclusive licence to transmit natural gas in Czechia. It manages the gas system in an emergency and declares regulatory alert levels, thereby deciding on gas supplies to customers. Any problems with Net4Gas’s pipelines would seriously jeopardise gas supplies to the country.