Rompetrol Rafinare, a KMG International group member company, registered a gross consolidated turnover worth USD 1.7 billion in the first half of 2017, a level comparable to that from the same period in 2016. EBITDA operational profit amounted to USD 57.5 million, down by 36% compared to the same period in 2016, in the context of a 17% drop in refining margins in H1 2017 compared to H1 2016. The financial results were also influenced by the scheduled stop of production units in May 2017. The evolution of the net consolidated result registered in the first half of 2017, of minus 7 million dollars, was also influenced by the drop of refining margins, the steepest of which by 52% being registered in the second quarter of 2017.
Consolidated financial results of Rompetrol Rafinare include the results of Rompetrol Rafinare S.A. and those of subsidiaries Rompetrol Quality Control S.R.L., Rom Oil S.A., Rompetrol Downstream S.R.L., Rompetrol Logistics S.R.L. Rompetrol Gas S.R.L and Rompetrol Petrochemicals S.R.L.
According to the individual financial reports expressed in RON, Rompetrol Rafinare registered RON 171 million net profit, up by 20% over the same period last year, when the individual net profit amounted to RON 143 million. Rompetrol Rafinare has carried out investments worth USD 27.5 million in the first half of 2017, both in development projects for certain production units at the Petromidia refinery, and for maintenance works at industrial installations for refining activities, storage and logistics.
Rompetrol Rafinare exported a total quantity of products of over 1.1 million tons in the first half of 2017, a similar level compared to the same period of 2016. The company is the largest exporter of oil products in Romania and the third largest exporter in the country. Accounting for over 40% of Romania’s refining capacity and over 30% of the regional fuel consumption, Petromidia is the most modern refinery in the country, while total investments carried out by KMG International and KazMunayGas for this platform amount to over USD 1.4 billion.
Fuel sales for the retail segment grew by 9% in the first semester of 2017, compared to the same period in 2016, while the total GPL quantity sold grew by 18% in the first semester of 2017, compared to the same period of 2016.
In the second trimester of 2017, compared to the similar period of 2016, Platts quotations (FOB Med Italy-mean), expressed in the reference currency, USD, were, on average, 7% higher for benzine and 10% higher for diesel. The 4% depreciation of the national currency as compared with the USD has determined that the effective decrease, in the national currency, of the two quotations should be at around 11% for benzine and 15% for diesel.
Starting with January 1st 2017, VAT dropped by one percentage point, from 20% to 19%, while fuel excises dropped by 70 eurocents/1000 liters, drops fully integrated in the prices paid by clients at the pump.
At the end of June 2017, the distribution segment of Rompetrol Downstream entailed 789 sales locations, including its network of petrol stations, partner stations, mobile stations: express, CUVE and RBI.
The retail activities of KMG International are conducted in over 1.000 distribution locations for fuels owned and operated in countries like Romania, Georgia, Bulgaria, Moldova.