Georgia’s state-run Gas Transportation Company (GGTC) ended 2024 with a net loss of 1.3 million GEL despite an increase in annual revenue, which raises concerns about the sustainability of its current financial model.
As the company’s latest financial statement disclosed, GGTC generated 96 million GEL in revenue last year, up by 4 million GEL compared to 2023. However, this modest growth was offset by significantly higher expenses, reversing the previous year’s 2.8 million GEL profit.
The GGTC operates the country’s main gas transmission systems, including the strategic North-South Main Gas Pipeline that facilitates Russian gas transit to Armenia. The company is fully state-owned, split evenly between Georgia’s Ministry of Economy and Ministry of Finance.
The biggest financial burden in 2024 was a 44.5 million GEL amortization fee from a concession agreement for the pipeline lease, by far the single largest cost category.
Other major expenses included:
- Gas loss compensation: 25.7 million GEL
- Staff salaries and benefits: 24.3 million GEL
- Depreciation costs: 4 million GEL
- Taxes: 4 million GEL
- Miscellaneous: 9 million GEL
By the end of 2024, GGTC reported 247 million GEL in assets and 21 million GEL in liabilities. While the balance sheet shows a relatively stable asset base, the financial loss has attracted renewed attention to the company’s cost management practices and the viability of its operational agreements.
