Rompetrol refinery in Romania revaluates plant and equipment by 25% down

Rompetrol Rafinare (BVB: RRC), a member company of the KMG International Group, revaluated downward its properties, plant, and equipment by 25% (USD 223 million) to USD 888 million, which contributed – besides lower activity and prices – to the USD 270 million net losses reported in 2023.

The company reported a USD 90 million net profit in 2022, but that was an exception.

During 2019-2023, the company recorded a consolidated net loss of USD 705 million based on the international and regional context, as well as the COVID-19 pandemic.

The revaluation was carried out based on “latest long-term forecasts, related to macroeconomic factors (e.g., decreasing European refining margins, decreasing dynamics of demand for refined products, increasing the weighted average cost of capital) and considering the latest legal provisions on fiscal matters (solidarity tax, turnover tax).”

It was coordinated and audited by companies part of the Big Four, the company’s management announced.

As regards the 2023 financial results, the consolidated gross turnover of the refining segment reached USD 4.5 billion, the operating profit (EBITDA) reached a value of about USD 187.7 million, while the net result was a negative one of about USD 227 million.

In 2023, the Petromidia Navodari refinery processed just over 5 million tonnes of raw materials, managing to produce 1.38 million tonnes of gasoline and almost 2.5 million tonnes of diesel and special aviation fuel. Of the nearly 3.9 million tonnes of fuels, 65% were directed to the domestic market.

Petromidia represents 40% of the refining capacity in Romania and has a stable flow of raw material, supported by the purchases of Kazakh crude, sustained by KazMunayGas. In 2023, the Petromidia refinery mainly processed crude from Kazakhstan – KEBCO and CPC.

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