Rompetrol Rafinare, member of KMG International, recorded a 44% increase in gross turnover in the first nine months of this year from 2017 to $ 4.1 billion. This development was mostly influenced by the trend of the rise in international oil prices.
At the same time, the business result – EBITDA of the company amounted to 158.5 million USD, from 4% in the period from January to September 2017, due to an increase in the volume of processed raw materials and sold products. Two refineries – Petromidia Navodari and Vega Ploiesti increased in the first nine months by 19% of the quantities of processed raw materials, reaching 4.73 million tons and 314 thousand tons, respectively.
Net result recorded by Rompetrol Rafinare in the first three quarters of this year it was positive, of about 33.3 million dollars, a drop of 41% due to the negative impact of exchange rate differences and other events that are irreversible. In addition, volatility is the supply of raw materials and petroleum products, in the first nine months, oil was 39% higher, and fuels by 28% for Euro 5 and 35% for diesel Euro 5.
On the European level, the purification margins were reduced by 13.1% in the period from January to September, compared to the same period of 2017 and stabilized on average 48.2 USD / t. The average value of $ 72 / barrel, which was reached on the basis of oil quotation, is highest in the last 4 years, with a maximum of $ 83.6 / barrel on September 28, 2018.
The company continued this year to optimize its processing costs and operational costs, and the Petromidiya refinery managed to improve its gross margin of processing by 5%.
Rompetrol Rafinare continues to be the largest roller exporter in Romania, the quantities of petroleum products delivered for export by the Refinery and Petrochemical Division to subsidiaries KMG International in Bulgaria, Moldova and Georgia and partners in the Black Sea region to 1.42 billion dollars in the first nine months of this year (about 66% more than in the same period last year).
The company made a significant contribution to the Romanian state budget, paying over $ 1.2 billion in January-September, of which $ 441 million 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%).
At the refinery segment, the company posted a gross turnover of $ 3.56 billion in the first nine months of the year, an increase of around 51% over the same period of 2017.
At the same time, the operating profit of EBITDA increased by 22% compared to the January-September 2017 index, to $ 135.7 million. The company managed to double its net profit in the first nine months of 2017 from $ 24.8 million to $ 47.7 million.
The financial results were supported in the same period with an improvement of 5% of the gross margin of processing of the Montenegrin coastal plant to the level of 51.3 USD / ton and 19% of the quantity of processed raw materials (4.73 million tons) and produced fuels (gasoline, diesel, 3.71 million tons).
Currently, the activity of production units is halted / reduced for planned audit work, which will enable them to maintain their optimal production capacities and create the necessary framework for future investments.
In addition, they will ensure the continuous operation of Petromidi Oil Refinery by 2020, when the general audit will be scheduled every four years. The estimated work is $ 21.5 million, which could add about $ 4.5 million for additional operations.
Vega Ploiesti refineries processed in the first nine months the total quantity 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 the only domestic producer of bitumen and hexane.
The process utilization rate increased by 19% for the Petromidia Refinery (99.2%) and 20.3% for the Vega Refinery (126.8%).
Petrochemical Division recorded a turnover of $ 165 million in the first half of the year, up 23% from the same period of 2017. Currently, it is still the only producer of polypropylene and polyethylene in Romania.
Under the conditions of a low margin – the smallest in the last seven years, unfavorable market conditions and high costs of raw materials imports (ethylene for polyethylene installations), the company recorded negative operating results in the period from January to September – EBITDA and net result, ie loss of 12.8 million dollars and $ 27.4 million.
Under these circumstances, in the first half of the year, the company decided to maintain a HDPE polyethylene facility in standby mode after successfully completing its inspection and testing work (verification / upgrading of equipment, approvals, technological samples, etc.).
Through petrochemical division, Rompetrol Rafinare increased by 21% the amount of propylene and 11% ethylene in the first nine months of this year compared to the volume reached in the similar period of 2017. Crude polypropylene production material provided by Petromidia refinery, it is necessary to introduce the needs for low density polyethylene plants (ethylene).
The total sales of polymers in the period January – September increased by 15% compared to the same period last year to 156 thousand tons.
The distribution segment recorded an increase in gross business turnover by 33% in the same period from 2017 between January and September, due to the growth of international quotations and, implicitly, in domestic oil prices, as well as the increase in the volume of products sold.
At the international level, fuel prices rose in the first nine months of this year by around 28% for gasoline Euro 5 (683 USD / ton) and 35% for diesel Euro 5 (638 USD / tonne) compared to the level recorded in the similar period in 2017 year. In the third quarter, the increase in fuel prices was more pronounced than in K3 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 (the third quarter of 2018 compared to the third quarter of 2017) made effective appreciation in the national currency of two quotations of about 25.5% for gasoline and 29.3% for gasoline. This was also an excise on fuel, which was higher than 2017 by about 15% for gasoline and 16% for gas oil.
Developments did not fully reflect market prices on the market, which rose to T3 2017 in the third quarter this year, with around 25.7% for diesel and 21.7% for gasoline.
Thus, the financial indicators obtained by the distribution segment in the first nine months amounted to $ 37.3 million for the operating result of EBITDA – 21% less than in the same period last year, resulting in USD 16.8 million net – 59%.
Rompetrol Dovnstream has managed to increase the amount of commercial fuels (gasoline, diesel, LPG) by about 1.69 million tonnes from January to September 2017 to 1.82 million tonnes in the first nine months of this year.
In the retail segment, the company recorded an increase in trading volume by 2%, an evolution supported by the Rompetrol re-branding program and the LPG auto distribution point, the continuation of the optimization program and the reduction of operating costs, as well as the completion of 4 new stations.
The wholesale segment has expanded its presence since the beginning of the year with 85 new domestic bases of 9 and 20 cubic meters, the total quantities sold on this channel in the first nine months of this year by 17% compared to those in the same period last year.
At the end of September 2018, the distribution segment of Rompetrol Dovnstream consisted of 895 outlets (own stations, partner stations, express stations, internal bases), increasing by 102 units in comparison with September 2017.
Image source and text: Rompetrol Rafinare