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Rompetrol Rafinare – 48% turnover growth, due to the sales increase

15 May 2014
Bogdan Tudorache


During the first quarter of the year, the consolidated turnover of Rompetrol Rafinare, a member company of KMG International, was USD 1.3 billion, 48% higher compared to the same period of 2013, and its operating result was USD 9.3 million, compared to a negative value of USD 120,000.

„The company’s consolidated financial results have been positively influenced by the increase in the quantities produced and sold, compared to the same period of last year, and negatively influenced by the evolution of international quotations for crude oil and oil products. Due to a 8% drop for gasoline and 5% for Diesel oil in Q1 2014, the crude oil dropped by 4%, the average quotations being above USD 108/bblfor the Brent-typecrude oil and approx. USD 107.5/bblfor the Urals-type,” shows a company release.

The quantity processed in Q1 2014 is the biggest since 1979

The investments made by KMG Internaționaland its sole shareholder – KazMunayGas, have enabled Petromidia refinery to reach, during the period comprised between January and March 2014, record levels of production, energy efficiency and white product outputs (gasoline and Diesel oil). Thus, the average quantity processed in Q1 was, in winter conditions, 13,000 tons/day, i.e. the highest since its establishment (1979), and the output reached for gasoline and Diesel oil was above 86%, exceeding the level of 2013 – 85.6% – which was the highest in the history of the refinery.

Also, the drop in the operating costs, paralleled by an increase in the mechanical and operational availability, have led to an improvement of the Energy Efficiency Index, which was 101 points, i.e. the best quarterly level obtained by the refinery so far. In 2013, the record level of EEI was 104 points.

Also, exports had a positive evolution, their level exceeding USD 600 million in Q1 2014. The exports amounted to USD 1.7 billion in 2013, and the estimates show a 20-30% increase in their level in 2014.

Investments to exceed USD 35 million in 2014

For this year, the scheduled investments are estimated to exceed USD 35 million, mainly for continuing usual maintenance, operational support for improving the technological conditions and maximize returns from processing crude oil. Petromidia covers 43% of Romania’s refining capacity, has a capacity of over 5 milion tones/year and total investment made by KMG International and KazMunayGas for this platform amounts to over USD 1.3 billion.

Rompetrol Rafinare has remained an important taxpayer, contributing to Romania’s state budgetwith more than USD 319.6 million during the first quarter of 2014. In 2013, its contribution exceeded USD 1.4 billion.

Rompetrol Rafinare’s turnover reached USD 1.21 billion during the 1st quarter of 2014, i.e. 56% higher compared to the same period of 2013, being influenced by the sale of higher quantities of oil products, despite the drop in their international quotations.

In Q1 2014, the average quotation for gasoline dropped by 8%,and for Diesel oil by 5%, gasoline reaching a level of USD 961/t, and Diesel oil USD 919/t.

Fuel sales bigger by 81%

Fuel sales exceeded 892,000 tons in Q1 2014, i.e. 81% higher compared to the same period of last year (492,000 tons). Internal sales increased by 42%, while external fuel sales increased by 120% compared to Q1 2013.

The high sales level was due to the constant increase in the production of Petromidia refinery. During the 1st quarter of 2014, the refinery’s total production of raw material was 1.18 million tons, i.e. 87% higher compared to the same period of last year, when the processed quantity was 0.63 million tons, due to the general overhaul scheduled between March and April 2013, for the execution of technological works.

Also, the utilization degree of the refining capacity was 90.51% in Q1 2014, i.e. 16% higher compared to the same period of last year.

As far as Vega refinery is concerned, the raw material processed during the 1st quarter of 2014 exceeded 51,500 tons, i.e. 66% higher compared to the 1st quarter of 2013 (approximately 32,000 tons).

Petrochemical sales up 20%

Starting with January 1st, 2014, the petrochemical activity has been taken over by Rompetrol Rafinare SA. For the first 3 months of 2014, compared to the same period of last year, the petrochemical segment output was influenced by the volatility of the relevant market, in particular in March 2014, when the petrochemical products’ margins dropped. Compared to the end of 2013, in March 2014, the propylene quotations increased by 7%, while the polypropylene quotations increased by merely 2%.

The petrochemical products sales increased by 20% in Q1 2014, compared to the same period of last year.

The plants existing on Petromidia and Vega industrial platforms are operated in accordance with the highest performance standards, and also in compliance with the environmental protection commitments.

Distribution up 28%

In Q1 2014, the turnover related to the distribution segment reached USD 645.8 million, i.e. 28% higher compared to Q1 2013, being positively influenced by the wholesale volumes, which were 65% higher compared to the same period of 2013.

Although international quotations (FOB Med Italy) dropped, on the average, by 8% for gasoline and by 5% for Diesel oil, due to a 1% drop in the RON/USD exchange rate, during the 1st quarter of 2014 compared to the same period of last year, the financial result of the distribution segment was positively influenced, mainly by the optimization of the sales channels and cost reduction program.

At the end of March 2014, Rompetrol Downstream’s distribution segment was comprised of more than 750 sale points, including the network of own stations, partner stations and mobile stations.

Autor: Bogdan Tudorache

Active in the economic and business press for the past 26 years, Bogdan graduated Law and then attended intensive courses in Economics and Business English. He went up to the position of editor-in-chief since 2006 and has provided management and editorial policy for numerous economic publications dedicated especially to the community of foreign investors in Romania. From 2003 to 2013 he was active mainly in the financial-banking sector. He started freelancing for Energynomics in 2013, notable for his advanced knowledge of markets, business communities and a mature editorial style, both in Romanian and English.

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