Transgaz Medias (TGN), the national natural gas pipeline company, has budgeted gross income worth 317.6m RON (90.7m euros) for this year, around 28% higher than the estimated level for 2007, of 247.9m RON (74.8m euros).

The company's turnover is expected to rise by 20% during the same period, to 1.24bn RON (364m euros). Transgaz is one of the biggest companies on the Stock Exchange, with capitalisation currently topping 1bn euros. The company was listed in the wake of an initial public offering carried out late last year, through which it raised 65m euros from over 12,000 investors.

The company's budgetary projections are based on the regulated revenues set by the Romanian Energy Regulation Authority (ANRE) on October 1, 2007.

The authority sets the target levels of annual revenues for a 5-year period and starting from these figures determines the level of regulated rates.

According to analysts, the company's annual revenues very much depend on the level of rates set by the regulatory authority since the demand for domestic gas is relatively constant.

Transgaz plans to operate investments worth 587.2m RON (around 167m euros) in 2008, the majority of which will be paid for with capital raised by the company from the IPO. As part of the IPO, Transgaz put up for sale 10% of its shares, at a price of 191.92 RON/share, totalling 64m euros. In the first 9 months of last year, Transgaz generated net income similar to the level reached in the same period of the previous year, of 171m RON (51.3m euros) amid total revenues that advanced by around 8%, to 717m RON (215m euros).

For 2007, the company had estimated gross income would drop by around 13% to 247.9m RON (90.7m euros) amid 13% higher turnover, at 1,030m RON (310m euros).

Starting October 1, 2007, ANRE raised natural gas prices for household consumers by 3.7% amid rising imp