Tuesday , January 19 2021

Operating and financial results achieved in the third quarter

Rompetrol Rafinare, During the first nine months of 2018, we achieved sales of $ 158 million and processed more than 4.7 million tons of raw materials.

Rompetrol Rafinare, a member of KMG International, posted sales of $ 4.1 billion in the first nine months of this year, up 44% These developments were mainly influenced by the rise in international oil prices.

At the same time, the company's EBITDA was $ 158.5 million, or 4% from January to September 2017, due to an increase in processed raw materials and products sold. Two refineries – Petromidia Navodari and Vega Ploiesti During the first nine months rose by 19% of processed raw materials to 4.73 million tons and 314 thousand tons respectively.

The net result recorded by Rompetrol Rafinare During the first three quarters of this period, the negative impact of exchange rate differences and other uneconomic events resulted in a positive result of approximately $ 33.3 million, a decrease of 41%. Crude oil and petroleum product volatility were added, crude oil was 39% higher during the first nine months, while fuels rose by 28% for Euro 5 and 35% for Euro 5 diesel.

At the European level, refining margins declined by 13.1% between January and September compared to the same period in 2017 and stabilized at an average of $ 48.2 / tonne. The average price of crude oil at $ 72 / bbl was the highest in four years, up $ 83.6 / bbl on September 28, 2018.

The company continued this year to optimize processing and operating costs, while Petromidia refineries improved refining margins by 5%.

Rompetrol Rafinare continues to be the largest exporter of trolley products in Romania and the volume of petroleum products exported as a subsidiary in the petrochemical and petrochemical sector KMG International in Bulgaria, Moldova and Georgia For the partners in the Black Sea region, the company achieved $ 1.42 billion (about 66% over the same period last year) for one year and nine months.

The company is making an important contribution to Romania's state budget and is paying $ 1.2 billion between January and September, of which $ 414 million is supported in the third quarter of 2018.

The shareholders of Rompetrol Rafinare SA are KMG International (direct and indirect 54.63%) and the Romanian government (44.69%).

In refining, the company recorded total revenues of $ 3.56 billion for the first nine months of the year, a 51% increase over the same period in 2017.

At the same time, EBITDA operating results were $ 197 million, up 22 percent from January to September 2017. The company doubled its net profit to $ 27.7 million from $ 24.8 million during the first nine months of 2017.

The financial results show that the total refining margins of the Black Sea coast increased by 5% to US $ 51.3 / ton, 19% of the processed raw materials (4.73 million tons / ton) and produced fuels (gasoline, diesel and jet – 3.71 million tons).

Currently, the activity of the unit of production is suspended / reduced for planned revisions, which maintains optimal production capacity and provides the necessary framework for future investment.

In addition, the general amendment will ensure the continued operation of the Petromidia refinery by 2020, scheduled every four years. The estimated workload is $ 21.5 million, which can add approximately $ 4.5 million to additional work.

Vega refinery Ploieşti processed 314,000 tons of raw materials in the first nine months of the year, up 19% over the same period in 2017. The current refinery is Romania's longest-lasting unit, and is the domestic manufacturer of bitumen and hexane.

Petrocidia refineries (99.2%) and Vega refineries (19.6%) increased by 20.3%.

The petrochemical division generated sales of $ 165 million in the first half, up 23 percent from the same period in 2017. It is currently the only polypropylene and polyethylene manufacturer in Romania.

During the past seven years, the smallest market conditions, unfavorable market conditions, and high ethylene import costs for polyethylene equipment have led to negative operating results between January and September. EBITDA and net income of $ 12.8 million and $ 27.4 million, respectively.

In this situation, the company decided to keep the HDPE polyethylene plant on standby after the successful completion of inspection and test work (verification / upgrade of equipment, approvals, technical samples, etc.) in the first half.

Rompetrol Rafinare increased its propylene feedstock and ethylene by 21% in the first nine months of this year compared to the same period in 2017 through the petrochemical sector. The raw material for the polypropylene plant is supplied by the Petromidia refinery and the time for the low-density polyethylene plant is imported (ethylene).

Total polymer sales from January to September were 156,000 tons, up 15% from a year earlier.

The distribution sector saw a 33% increase in total sales between January and September 2017 due to the rise in international estimates and the implicit increase in domestic oil prices and the increase in products sold.

At the international level, fuel prices were about 28% for the first nine months of this year, compared to the levels recorded in the similar period for gasoline Euro 5 (683 USD / tonne) and diesel Euro 5 (638 USD / tonne) The price increase was more pronounced than in gasoline 31% and diesel 37.6% in the third quarter of 2017.

At the same time, leu's 2.4% depreciation for the US dollar (third quarter of 2018 compared to the third quarter of 2017) is the domestic currency of the two estimates, about 25.5% of gasoline and 25% of gasoline, 3% of gasoline. This was 15% more gasoline and 16% more diesel than in 2017 due to fuel consumption tax.

Development was not fully reflected in the price of fuel sold internally, and increased to T3 2017 in the third quarter of this year, with 25.7% for diesel and 21.7% for gasoline.

Thus, for the first nine months, the financials gained in the distribution sector were EBITDA operating results of $ 37.3 million, down 21% from the same period last year, with an outcome of $ 16.8 million. net – down 59%.

Rompetrol Downstream increased the amount of commercial fuels (gasoline, diesel, LPG) by about 1.69 million tons to 1.82 million tons during the first nine months of this year from January to September 2017.

In the retail sector, the company recorded a 2% increase in volume, supported the Rompetrol service station brand program and support for automatic LPG distribution points, reduced maintenance and operating costs, and four new stations.

The wholesale sector has 85 new domestic bases in September and 20 cubic meters, and the total quantity sold on this channel is 17% similar to last year during the first nine months of the period.

By the end of September 2018, Rompetrol Downstream's distribution segment was comprised of 895 transaction points (its own stations, partner stations, representation stations, internal bases) and increased by 102 units compared to September 2017.

Photo Source and Text: Rompetrol Rafinare

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