Rompetrol Rafinare, a member of KMG International, posted an increase of over 44% of its gross turnover in the first nine months of the year compared to the same level in 2017, to $ 4.1 billion. This development was mainly influenced by the upward trend in international oil prices.
At the same time, the operating result – EBITDA of the company amounted to 158.5 million USD, with 4% in the period January-September 2017, due to the increase in volumes of processed raw materials and products sold. The two refineries – Petromidia Navodari and Vega Ploiesti increased the quantities of processed raw materials by 19% in the first nine months to 4.73 million tonnes and 314 thousand tonnes respectively.
The net result is recorded by Rompetrol Rafinare the first three quarters of the year were positive, worth about $ 33.3 million, down 41% due to the adverse effects of exchange rate differences and other irreversible events. This was added to the price volatility of raw materials and petroleum products, while crude oil was 39% higher in the first nine months and fuel by 28% for Euro 5 and 35% for Euro 5 oil.
At European level, refining margins decreased by 13.1% between January and September compared with the same period in 2017 and stabilized on average at USD 48.2 / tonne. The average of $ 72 / barrel reached by crude oil supply is the highest in the last four years, with a peak of $ 83.6 / barrel on September 28, 2018.
The company continued to optimize its processing costs and operating costs this year, while the Petromidia refinery also managed to improve the gross margin of 5%.
Rompetrol Rafinare is still the largest exporter of pulley products in Romania, the quantities of petroleum products delivered for export from refining and petrochemicals to subsidiaries KMG International in Bulgaria, Moldova and Georgia and partners in the Black Sea region to $ 1.42 billion in the first nine months of the year (about 66% above the same period last year).
The company contributes significantly to Romania's 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%).
In the refining sector, the company earned a gross turnover of $ 3.56 billion in the first nine months of the year, or about 51% in the same period in 2017.
At the same time, the EBITDA operating result increased by 22% compared to January-September 2017, to US $ 135.7 million. The company managed to double its net profits from $ 24.8 million in the first nine months of 2017 to about $ 47.7 million.
The economic outcomes were supported over the same period by a 5% improvement in the gross refining margin of the Black Sea landfill at USD 51.3 per 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).
At present, unit activity is interrupted / reduced for planned review work, which will allow them to maintain their optimum production capacities and create the necessary framework for future investment.
In addition, they will ensure the continuous operation of the Petromidia refinery by 2020, so the general revision is planned every four years. Estimated works amount to $ 21.5 million, to which about $ 4.5 million can be added for additional actions.
The Vega Refinery in Ploieşti processed a total of 314 thousand tons of raw materials in the first nine months of the year, up 19% from the same period in 2017. Today, the refinery is the largest plant in Romania and is the only domestic manufacturer of asphalt and hexane.
The capacity utilization rate increased by 19% for the Petromidia refinery (99.2%) and 20.3% for the Vega refinery (126.8%).
The petrochemical division reported a turnover of $ 165 million in the first half of the year, marking an increase of 23% over the same period in 2017. At present, it is still the only polypropylene and polyethylene manufacturer in Romania.
Contrary to low profit margins – the smallest of the last seven years, adverse market conditions and high input raw material costs (ethylene for polyethylene plants), the company recorded negative operating results between January and September – EBITDA and net result, equivalent losses of USD 12.8 million and USD 27.4 million.
Under these circumstances, the company decided to keep the polyethylene HDPE production plant in standby mode after successfully completing inspection and testing (equipment verification / upgrading, approvals, technological samples, etc.). In the first half of the year,.
Rompetrol Rafinare, through its petrochemical division, increased by 21% the quantity of propylene and 11% of ethylene in the first nine months of the year compared to the volume achieved in the corresponding period of 2017. The raw material for the polypropylene plant is provided from the Petromidia refinery, for the needs of low-density polyethylene plants, is introduced (ethylene).
Total polymer sales in the January-September period increased by 15% compared to the same period last year to 156 thousand tons.
The distribution sector recorded a 33% increase in gross turnover during the same period in 2017 between January and September, amid a rise in international prices and, indirectly, in domestic oil prices as well as an increase in the volume of products sold.
At international level, fuel prices rose by about 28% in Euro 5 (683 USD / tonne) and 35% in Euro 5 diesel (638 USD / tonne) in the first nine months of the year compared to the level which was recorded in the corresponding period in 2017. In the third quarter, fuel appreciation was more pronounced than in the third quarter of 2017, 31% for gasoline and 37.6% for diesel.
At the same time, the depreciation of 2.4% against the US dollar (3rd quarter of 2018 compared to the third quarter of 2017) made the real appreciation in the national currency of the two prices about 25.5% for gasoline and 29.3% for gasoline. This was also the excise duty on fuel, which was higher than 2017 by about 15% for gasoline and 16% for gas oil.
Developments were not fully reflected in domestic fuel prices, increasing in the third quarter of the year to T3 2017 with around 25.7% for diesel and 21.7% for gasoline.
Thus, the financial indices that emerged from the distribution segment for the first nine months were $ 37.3 million for the EBITDA operating result – 21% less than in the same period last year and $ 16.8 million for the net result – down 59%.
Rompetrol Downstream managed to increase the volume of commercial fuel (petrol, diesel, LPG) by about 1.69 million tons between January and September 2017 to 1.82 million tons in the first nine months of this year.
In the retail sector, the company recorded a 2% increase in trading volumes, supported by the re-negotiation program for Rompetrol petrol stations and LPG car distribution points, the continuation of optimization programs and the reduction of operating costs, as well as the complete 4 new stations.
In the wholesale sector, it has 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% in the first nine months of the year compared with those in the period similar to last year.
At the end of September 2018, the Rompetrol Downstream distribution division consisted of 895 sales points (partner stations, emergency stations, internal bases), increased by 102 points compared to September 2017.
Source of photo and text: Rompetrol Rafinare