Rompetrol Rafinare, a member of KMG International, recorded in the first nine months of the year an increase of more than 44% in gross turnover compared to the same level in 2017, to $ 4.1 billion. This development was affected mainly by the upward trend in world oil prices.
At the same time, the Company's EBITDA operating results amounted to $ 158.5 million, 4% higher than the period January-September 2017, due to the increase in the volume of processed manufacturers and raw materials. The two refineries – Petromidia Navodari and Vega Ploiesti Increased in the first 9 months by 19% in the quantities of raw materials processed, reaching 4.73 million tons and 314 thousand tons, respectively.
The net result was recorded by Rompetrol In the first three quarters of the year was positive, of about $ 33.3 million, a decrease of 41% due to the negative impact of exchange rate differentials and other events with a one-time nature. In addition, the volatility of raw materials and refined products, crude oil is 39% higher in the first nine months, and fuels 28% to EUR 5 and 35% to diesel fuel of EUR 5.
On the European level, refining margins fell by 13.1% between January and September compared to the same period in 2017, and averaged $ 48.2 per ton. The average of $ 72 a barrel reached by the crude oil bid is the highest in the past four years, with a maximum of $ 83.6 a barrel on September 28, 2018.
The company continued to streamline its processing costs and operating expenses this year, and Petromedia's refinery also improved its gross profit margin by 5%.
Rompetrol Raffinery continues to be Romania's largest exporter of trolley products, quantities of petroleum products for delivery by refining and petrochemical divisions to its 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 (66% compared to the same period last year).
The company is an important contributor to Romania's state budget, and it pays 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%).
The refining segment recorded a gross sales turnover of $ 3.56 billion in the first nine months of the year, an increase of 51% compared to the corresponding period last year.
However, EBITDA increased by 22% compared with the January-September of 2017 to $ 135.7 million. The company managed to double its net profit from $ 24.8 million in the first nine months of the year to $ 47.7 million.
The financial results were supported at the same time by a 5% improvement in gross margins of refining the Black Sea Coast unit to $ 51.3 per ton and 19% of processed raw materials (4.73 million tons) and fuel produced (gasoline, diesel, jet – 3.71) Million tons).
To date, the operations of the generation units are discontinued / reduced for the planned repair work, which will enable them to maintain their optimal production capabilities and create the framework required for future investments.
In addition, they will ensure the continued operation of the Petromidia refinery by 2020, when the general repair is planned every four years. The estimated cost of work is $ 21.5 million, to which additional $ 4.5 million can be added for additional operations.
The Vega Ploieşti refinery processed a total of 314 thousand tons of raw materials in the first nine months of the year, an increase of 19% over the same period in 2017. Today, the refinery is the only long-term unit in Romania, and is the only domestic manufacturer of bitumen and hexane.
The utilization rate of processing capacity increased by 19% for the Petromedia refinery (99.2%) and by 20.3% for the Vega refinery (126.8%).
The petrochemicals division posted a turnover of $ 165 million in the first half of the year, up 23% compared to the same period last year. Today it continues to be the only producer of polypropylene and polyethylene in Romania.
Against the background of the lowest margin – the smallest in the past seven years – negative market conditions and high costs of raw materials for imports (ethylene for polyethylene facilities), the Company recorded negative results of operating results between January and September – EBITDA and net result, respectively, losses of $ 12.8 million – $ 27.4 million.
Under these circumstances, the Company decided to keep the HDPE polyethylene plant in standby mode after completion of its test and inspection work (verification / upgrading of equipment, approvals, technology samples, etc.) in the first half of the year.
Rompetrol Rafinare, through its petrochemical division, increased propylene and ethylene by 21% in the first nine months of the year compared with the volume of sales in the corresponding period last year. The raw material of the polypropylene plant is given by the Petromedia refinery, the time for low-density polyethylene plant needs imported (ethylene).
Total sales of polymers in the period January – September increased by 15% over the same period last year to 156 thousand tons.
The distribution segment recorded a 33% increase in gross business volumes in the same period in 2017 between January and September, against the background of the rise in international expectations, implicitly, in domestic oil prices and the increase in the volume of products sold.
On the international level, gas prices rose by 28% for gasoline in the first nine months of the year ($ 683 per tonne) and 35% for diesel fuel ($ 638 per ton) compared to the same period in 2017. In the third quarter, More pronounced than in the third quarter of 2017, 31% for gasoline and 37.6% for diesel fuel.
However, the depreciation of 2.4% of the Leu relative to the US dollar (Q3 2018 compared to the third quarter of 2017) led to an effective appreciation of the national currency of both bids of 25.5% for gasoline and 29% , 3% for fuel.This was also the excise tax on fuel, which was higher than 2017 by 15% for gasoline and 16% for petroleum.
The developments were not fully reflected in the prices of fuels marketed in the domestic market, and increased in the third quarter of the year to T3 2017, with 25.7% for diesel and 21.7% for Delek.
Accordingly, the financial indicators received by the distribution segment in the first nine months of 2010 were $ 37.3 million in respect of the EBITDA result – a decrease of 21% compared to the corresponding period last year and $ 16.8 million in the net result – a decrease of 59%.
Rompetrol Downstream was able to increase quantities of commercial fuels (gasoline, diesel, LPG) by about 1.69 million tons between January and September 2017 to 1.82 million tons in the first nine months of the year.
In the retail sector, the company recorded a 2% increase in traded volumes. The evolution was supported by the RomTrol gas station switching program and LPG automatic distribution points, continued optimization programs and reduced operating costs, as well as the completion of 4 new stations.
In the wholesale sector it has expanded its presence since the beginning of the year with 85 new local bases of 9 and 20 cubic meters, the total quantities sold in this channel is 17% in the first nine months of the year compared to the same period last year similar to last year.
At the end of September 2018, the distribution of Rompetrol Downstream included 895 points of trade (its own stations, partner stations, express stations, internal bases), an increase of 102 units compared to September 2017.
Photo and text source: Rompetrol Rafinare