Biggest oil refinery in Romania slips in the red due to lower margins

Rompetrol Rafinare, the company that operates Romania’s largest oil refinery – Petromidia, recorded losses of USD 19.4 million in the first half, compared to a net profit of USD 2.8 million in the same period of 2017. The operating profit (EBITDA) went down 36%, to USD 54.9 million as the gross turnover declined by 4% year-on-year, to USD 2.5 billion.

The Petromidia refinery processed a record quantity of 3.1 million tons of raw materials in the first half of 2019, but the financial results were influenced by external factors.

“The volatility of the global context, the high fluctuations of the market quotations on raw materials and finished products, the significant pressure on the refining margins and the depreciation of local currencies against the dollar (the reference currency for oil and petroleum products) have led to declining results,” the company wrote in a report to investors.

“This year we aim for investments of about USD 60 million for the alignment and further modernization of the facilities, as well as for the digitization of the Petromidia refinery. Thus, we will continue to optimize and improve our operations, and the Petromidia and Vega refineries will become efficiency models for the industry in Romania,” said Yedil Utekov, General Director of Rompetrol Rafinare.

Rompetrol Rafinare is controlled by KMG International, whose main shareholder is the state oil company of Kazakhstan – KazMunayGas. The Romanian state holds a 46% minority stake in the company.

(Photo: Rompetrol-KMG-International Facebook Page)