RO biggest refinery processes less, but keeps investing in 2020

Petromidia, the largest refinery in Romania, operated by KMG International (formerly Rompetrol), will process 5.5 million tonnes of crude oil this year, some 13% less than last year - but will keep investing in development and capital repairs, according to the draft strategy prepared by the management for the shareholder meeting scheduled for April.

The refinery will process less crude because it will run the planned revision, for 51 days this year, between March 12 and May 2.

For this reason, gasoline production will drop to 1.37 million tonnes (compared to 1.6 million tonnes in 2019), and the diesel and jet fuel production will decline to three million tonnes, from 3.3 million tonnes the previous year.

The company has budgeted its production and sales at an oil price of USD 60 per barrel, average price this year, similarly to its main local market competitor, OMV Petrom, although oil is currently trading at half this price.

The total sales of car fuels will amount to 4.1 million tonnes this year, also decreasing from the 4.6 million tonnes reported last year. Out of the 4.1 million tonnes of fuel, 2.5 million will be sold in Romania and the rest will be exported.

On the other hand, the company continues its investments. Rompetrol Rafinare, the company that manages Petromidia and the smaller refinery Vega, has budgeted this year total investments of USD 124 million for development, capital maintenance and compliance with the legislative norms.

(Photo: KMG International Facebook Page)