Georgia’s State Gas Transportation Company (GGTC), which oversees the country's main gas pipelines, closed 2024 with a loss of 1.3 million GEL, marking a financial decline despite an increase in annual revenue.
According to the company’s latest financial report, total revenue reached 96 million GEL in 2024, 4 million GEL more than in 2023. However, this uptick in income was not enough to offset rising expenses. For comparison, the company posted a profit of 2.8 million GEL in 2023.
The Gas Transportation Company is a 100% state-owned enterprise, jointly held by the Ministry of Economy and the Ministry of Finance, each owning 50%. It operates Georgia’s North-South Main Gas Pipeline, a strategic corridor used to transport Russian natural gas to Armenia, as well as Georgia’s domestic gas transmission network.
The company’s most significant expense in 2024 was the 44.5 million GEL amortization fee linked to a concession agreement for the lease of pipeline infrastructure.
Additional key expenses included:
- Gas loss costs: 25.7 million GEL
- Personnel expenses: 24.3 million GEL
- Depreciation: 4 million GEL
- Taxes: 4 million GEL
- Other expenses: 9 million GEL
Combined, these costs outweighed the company's revenue growth, tipping the balance sheet into negative territory.
As of the end of 2024, the company reported:
- Total assets: 247 million GEL
- Total liabilities: 21 million GEL
Despite the year’s loss, the company maintains a relatively strong asset position, though the financial setback raises questions about cost management and the long-term sustainability of operations under current agreements.
