44
On March 16, 2016, DIICOT – Central Structure informed the persons involved in the cause about the start of legal
actions against them. At the request of investigators, the Company announced that in case of a prejudice being
established during the investigation, the Company will join the case as civil party.
In November 2016, DIICOT informed the Company the prejudice established in amount of RON 282,630 thousand.
Following this request, Romgaz announced that will join the case as a civil party for the amount of RON 282,630
thousand to recover this amount from the respective client and any other person that may be found guilty for
causing the prejudice.
In June 2017, DIICOT issued a press release announcing the referral to court of several persons involved in the
case. In January 2018, the High Court of Cassation and Justice ruled that the indictment prepared by DIICOT was
not legal. The Court issued a decision in December, 2022 stating there is no offence and the civil complaint filed
by Romgaz was left unresolved. Romgaz appealed the decision. A final decision was not yet issued by the court.
(b) Taxation
The Romanian taxation system is undergoing a process of consolidation and harmonization with the European Union
legislation. However, there are still different interpretations of the fiscal legislation. In various circumstances, the
tax authorities may have different approaches to certain issues, and assess additional tax liabilities, together with
late payment interest and penalties. In Romania, tax periods remain open for fiscal verification for 5 years. The
Company’s management considers that the tax liabilities included in these financial statements are fairly stated.
(c) Environmental contingencies
Environmental regulations are developing in Romania and the Company has not recorded any liability at December
31, 2023 for any anticipated costs, including legal and consulting fees, impact studies, the design and
implementation of remediation plans related to environmental matters, except the amount of RON 405,585
thousand (December 31, 2022: RON 236,490 thousand), representing the decommissioning liability.
(d) Contingencies related to grants related to income
Government Emergency Ordinance no. 27/2022 as subsequently amended (GEO 27) includes the obligation of the
Company to sell at a regulated price of RON 450/MWh the electricity it produces. According to GEO 27, electricity
producers must calculate a contribution to the Energy Transition Fund. If the value of the CO
2
certificates related
to the energy sold at RON 450/MWh exceeds the contribution to the Energy Transition Fund, electricity producers
are entitled to receive the excess. Until December 2023, the legislation did not provide for the mechanism to
request these amounts from the Romanian State nor the competent authority for the settlement of such requests.
As such, the right to receive the grant is not enforceable.
By December 31, 2023 the Company should receive RON 167,743 thousand.
33. JOINT ARRANGEMENTS
In January 2002, Romgaz signed a petroleum agreement with Amromco for rehabilitation operations in order to
achieve additional production in 11 blocks, namely: Bibeşti, Strâmba, Finta, Fierbinți-Târg, Frasin-Brazi, Zătreni,
Boldu, Roșioru, Gura-Șuții, Balta-Albă and Vlădeni. For the base production, Romgaz holds a share of 100% and for
the additional production, Romgaz owns a share of 50% and Amromco Energy SRL - 50%. As the agreement was
signed to execute rehabilitation operations to obtain additional production, the mandatory work program is in
accordance with the studies approved by ANRM. Accordingly, the annual work program, which includes both works
provided in the studies and other works necessary and proposed by the partners, is approved annually by the Board
of the joint arrangement before the start of each year. The duration of the joint arrangement is in line with the
time frame of each individual concession agreements of the 11 perimeters stated above, which differs for each
block.
34. AUDITOR’S FEES
The fee charged by the Company’s statutory auditor, S.C. Ernst & Young Assurance Services S.R.L. for the
statutory audit of the 2023 annual financial statements is RON 377 thousand.
The fees charged for other assurance services in 2023 are RON 205 thousand.
35. EVENTS AFTER THE BALANCE SHEET DATE
In December 2023 the Extraordinary General Meeting of Shareholders approved Romgaz’ share capital increase
through the incorporation of reserves of RON 3,468,802 thousand by issuing 3,468,801,600 shares with a nominal
value of RON 1/share, each shareholder registered on the Registration Date being entitled to 9 free shares for each
share held. The increase was registered in January 2024 at the Trade Register. The share capital increased to RON
3,854,224 thousand. The Extraordinary General Meeting of Shareholders approved the date of May 30, 2024 as the
date of distribution of the free shares.