PRESS RELEASE
Groningen , 12 April 2007
GasTerra’s results for 2006 and expectations for 2007
GasTerra’s turnover for 2006 was € 18.4 billion (2005: € 14.7 billion). This increase of 25.2% can be attributed in its entirety to the increase in world energy prices, with the price of oil being the pace-setting factor. Gas sales fell from 80.4 billion m3 in 2005 to 78.8 billion m3 in 2006. The average selling price per cubic metre rose from 18.0 cents (2005) to 23.0 cents in 2006; an increase of 27.7%.
The main cause of this fall in sales was the lower gas consumption during the last four months of last year as a result of the mild autumn weather. This affected home-market sales in particular, which fell from 32.0 billion m3 in 2005 to 28.7 billion m3 in 2006. Export sales rose slightly from 48.4 billion m3 to 49.0 billion m3.
A total of 36.2 billion m3 was purchased from the small fields and 32.6 billion m3 from NAM-Groningen, while 10.0 billion m3 came from imports.
The trading facilities are increasingly making their presence felt. The number of sales deals on the TTF (Title Transfer Facility) has increased considerably. Meanwhile, GasTerra has also become active on the National Balancing Point (NBP), where the natural gas, falling under the contract with Centrica (which came into force on 1 December 2006), is delivered.
GasTerra is also active in transitional areas involving the promotion of efficient gas consumption and energy conservation. Technology developed in earlier years for a micro combined heat-and-power boiler (micro CHP) has resulted in a boiler that is now being tested by practical experience at various locations. The favourable performance of this new generation of boilers, which produce heat and electricity at the same time, mean that these appliances show great promise for the future, which is moving towards more efficient and more economical energy consumption.
In cooperation with energy companies, manufacturers and, gradually, also with fitters, the company is working towards a large-scale roll-out of 10,000 boilers for 2007-2008, which will be followed by a further market introduction. The Netherlands is leading the way in the EU with this development.
It is expected that sales for 2007 will be around 85 billion m3. The increase in respect of gas sales during 2006 was mainly due to the fact that the Centrica contract became fully operational, meaning that, with an annual volume of 8 billion m3, the United Kingdom represents, after Germany, one of GasTerra’s major export countries. The forecast of 85 billion m3 is expressed with a certain amount of reservation, as even the first months of this year did not see real winter weather and the demand for natural gas during this period proved to be noticeably lower.
If the second half of 2005 and the first half of 2006 showed a continuing increase in energy prices, the final months of 2006 saw a drop in oil prices, with, for example, a major indicator such as Brent crude oil falling from approximately 80 dollars per vat to 60 dollars or even somewhat lower per vat. To an extent, this period represents a reference for gas prices during the course of 2007.
This has already led to a drop in industry prices and it is expected to lead to a drop in the wholesale price as at 1 July.
GasTerra
GasTerra is an international trading company in natural gas. The company is active on the European energy market and accounts for a substantial share of the Dutch energy supply. The company also offers services that are linked to trade in gas. It has a strong purchasing position and over 40 years of experience.
Contact details: A. Warner, +31-50-364 88 10, ben.warner@gasterra.nl
Annualreport2006.pdf
