Operational and financial results achieved in the third quarter


Rompetrol Rafinare, had a business result of USD 158 million, and the raw materials processed more than 4.7 million tonnes in the first nine months of 2018.

In the first nine months of this year, Rompetrol Rafinare, a member of KMG International, recorded more than 44% growth in gross turnover compared to the same period of 2017 to $ 4.1 billion. This development was mainly influenced by the trend of rising international oil prices.

At the same time, the EBITDA profit was USD 158.5 million, from 4% in the period from January to September 2017, due to an increase in the volume of processed raw materials and products sold. Both refineries – Petromidia Navodari and Vega Ploiesti in the first nine months increased by 19% of the quantities of processed raw materials, which reached 4.73 million tons and 314 thousand tons.

The net score he recorded Rompetrol Rafinare in the first three quarters of the year it was positive by approximately 33.3 million dollars, which is 41% lower due to the negative effect of exchange rate differences and other events with an unusual character. Additionally, fluctuations in raw materials and prices of petroleum products were added, while in the first nine months crude oil was 39% higher, fuel by 28% for Euro 5 and 35% for diesel 5 Euro.

At European level, the refinery rates decreased by 13.1% between January and September compared to the same period of 2017 and stabilized on average at 48.2 USD / tonne. The average value of 72 USD / barrel, achieved with the supply of crude oil, is the highest in the last 4 years, and on September 28, 2018, it was at most 83.6 USD / barrel.

This year, the company continued to optimize processing costs and operating costs, while the Petromidia refinery managed to improve its gross margin for refining by 5%.

Rompetrol Rafinare continues to be the largest exporter of Roma products for the trolleybus, the quantities of petroleum products delivered to subsidiaries for refining and petrochemical divisions KMG International in Bulgaria, Moldova and Georgia and partners in the Black Sea region in the first nine months of the year amounted to USD 1.42 billion (about 66% more than in the same period last year).

The company has made an important contribution to the state budget in Romania, which paid more than $ 1.2 billion in January-September, of which 441 million US dollars in the third quarter of 2018.

The main shareholders of Rompetrol Rafinare SA are KMG International (54.63% – direct and indirect) and the Romanian state through the Ministry of Energy (44.69%).

In the refining segment, the company earned a gross turnover of $ 3.56 billion in the first nine months of this year, and approximately 51% in comparison with the same period in 2017.

At the same time, the EBITDA's operating profit increased by 22% compared to the January-September 2017 index to USD 135.7 million. In the first nine months of 2017, the company doubled its net profit from $ 24.8 million to $ 47.7 million.

During the same period, the financial results were supported by a 5% improvement in the gross margin of refinement of the Black Sea coastal unit at the level of 51.3 USD / tonne and by 19% of the quantities of processed raw materials (4.73 million tonnes) and produced fuels (gasoline, diesel, jet – 3.71 million tonnes).

The activity of production units is currently stopped / reduced for planned audit work, which will enable them to maintain their optimum production capacity and create the necessary framework for future investments.

In addition, they will ensure the continuous operation of the Petromidi Oil Refinery until 2020, when the general revision is planned every four years. The estimated work amounts to $ 21.5 million, to which approximately $ 4.5 million could be added for additional operations.

In the first nine months of the year, the Vega Ploie┼čti refinery processed a total of 314 thousand tons of raw materials, which is 19% more than in the same period of 2017. At present, the refinery is the longest unit in Romania and is the only domestic producer of bitumen and hexane.

The utilization rate of processing capacity increased by 19% for the Petromidia Refinery (99.2%) and the Vega Refinery (by 20.8%) by 20.8% (126.8%).

Petrochemical division recorded revenues of $ 165 million in the first half of the year, an increase of 23 percent over the same period of 2017. Currently, Romania is still the only producer of polypropylene and polyethylene.

Given the low margins – the smallest in the last seven years, the unfavorable market conditions and the high cost of importing raw materials (ethylene for polyethylene devices), the company recorded negative operating results, EBITDA and net result, or losses of USD 12.8 million between January and September and $ 27.4 million.

In these circumstances, the company decided in the first half of the year to maintain the HDPE polyethylene factory in standby after having successfully completed inspection and testing work (checking / upgrading equipment, approval, technological samples, etc.).

In the first nine months of the year, Rompetrol Rafinare increased by 21% the amount of propylene and 11% of ethylene compared to the quantity achieved in the similar period of 2017. The polypropylene plant provides raw materials for the Petromidia refinery, and the time for low-density polyethylene needs to be imported (ethylene).

The total sales of polymers in the period January – September increased by 15% in the same period last year to 156 thousand tons.

In the same period of 2017, the distribution segment recorded a 33% increase in gross business turnover between January and September, an increase in international offers and, implicitly, at domestic oil prices and an increase in the volume of products sold.

At international level, in the first nine months of the year, fuel prices increased by approximately 28% for Euro 5 petrol (683 USD / tonne) and 35% for Euro 5 diesel (638 USD / tonne) compared to the level recorded in similar period of the year 2017. In the third quarter, fuel price growth was more pronounced than in the third quarter of 2017, 31% for gasoline and 37.6% for diesel.

At the same time, the 2.4% depreciation of the leu relative to the US dollar (3rd quarter 2018 compared to the third quarter of 2017) allowed the actual appreciation of the two state currencies by around 25.5% for gasoline and 29.3% for petrol. This was also the excise duty on fuel, which was higher than in 2017 by about 15% for petrol and 16% for gas oil.

Development is not fully reflected in the prices marketed in the internal markets, increasing in the third quarter of the year to T3 2017 with approximately 25.7% for diesel and 21.7% for petrol.

Thus, the financial indicators reached by the distribution segment in the first nine months amounted to USD 37.3 million for the EBITDA profit, which is 21% less than in the same period last year, resulting in USD 16.8 million net – down 59% .

In the first nine months of this year, Rompetrol Downstream increased the volume of commercial fuels (gasoline, diesel, liquefied petroleum gas) by approximately 1.69 million tonnes between January and September 2017 to 1.82 million tonnes.

In the retail segment, the company recorded a 2% increase in sales volume, with development being supported by the Rompetrol refinery program and automatic distribution points for LPG, the continuation of optimization programs and the reduction of operating costs and the completion of 4 new stations.

In the wholesale segment, it expanded its presence since the beginning of the year with 85 new domestic bases of 9 and 20 cubic meters, while the total quantities sold on this channel were 17% above those in the same period last year in the first nine months of the year.

At the end of September 2018, Rompetrol Downstream's distribution segment consisted of 895 trading sites (own stations, partner stations, high-speed stations, internal databases), which increased by 102 units in comparison with September 2017.

Source and text: Rompetrol Rafinare


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