Transgaz has reported 2Q12 results (Romanian Accounting Standards, unconsolidated) today, before the market opening. Net result came in at RON 36.9m profit for 2Q12, down 39.0% y/y and down 78.8% q/q. The net result was in line with our expectations and consensus expectations. We expected to see a decline in the quantities transported versus the previous year and an increase in tranzit revenues due to the depreciation of RON against the US$. Revenues came in flat y/y and in line with our expectations and the consensus. The q/q decline is due to seasonality. Operating result came in at RON 32.8m, down 51.2% y/y and 84.5% q/q. The results was 28.9% below our expectations on the back of slighlty higher salaries. The result is usually weaker in the quarter as quantities of gas are low during the summer months and operating leverage is high. Financial result came in at a RON 14.8m profit for 2Q12. The result is better than we expected on the back of slightly lower interest expenses and a better FX result.