Romanian oil company Rompetrol Rafinare posts turnover drop but narrows losses in Q1 2013

Oil and gas company Rompetrol Rafinare's turnover for the first quarter of 2013 was down 19 percent year-on-year, but the losses narrowed on Q1 2012. Turnover stood at some USD 884.3 million for Q1 2013, compared to a little under USD 1.1 billion for the same quarter last year. EBITDA losses for the first three months of 2013 were USD 119,038, or “close to break even” as Rompetrol Rafinare's results release puts it. Last year, EBITDA losses were USD 11.5 million in the first quarter. The company's net result also saw a reduced margin of loss. Net result for Q1 2013 was a USD 25 million loss, compared to nearly a USD 63 million loss last year. The prices of crude oil and petroleum products have followed a slightly decreasing trend compared to the first quarter of 2012, but have been much better than in the last quarter of 2012, due to the early start of the maintenance season in several refineries, according to Rompetrol Rafinare. The company contributed USD 235.4 million in the first quarter this year to the Romanian state budget. The main factors that influenced the financial results included international evolutions on the commodity market (-2 percent for EURO 5 petrol and -4 percent for EURO 5 Diesel), a 5 percent drop in international crude oil prices, supported by a 8 percent improvement of the Brent-Ural differential and the growth of the net refining margin, according to the company. Across Rompetrol Rafinare's three sectors – refining, distribution, petrochemical products – distribution was the best performing division in the first quarter of 2013. EBITDA profit increased to over USD 7 million, from some USD 1.6 million in the Q1 2012, while the net loss narrowed from nearly USD 11.5 million last year to some USD 1 million in the first three months of 2013. Turnover for the distribution segment fell by 7 percent on last year to just over USD 500 million. The refining segment recorded a fall in turnover, EBITDA and net losses, however the losses were shortened on last year. Refining turnover was just shy of USD 754 million, while the net result was a USD 23.1 million loss. The petrochemical segment followed a similar trend, fall in turnover and losses, although they were again smaller than in Q1 last year. The net result for the petrochemical division was a USD 2.3 million loss, while turnover fell 20 percent year-on-year to just under USD 57 million. Between March 1 and April 8 this year, the production activities of Rompetrol Rafinare and Rompetrol Petrochemicals were stopped to perform scheduled work, including the overhaul and upgrade of equipment to cope with the new processing capacity of the refinery, provide increased operational safety and comply with national and EU legislation. Rompetrol Rafinare recorded a gross turnover of some USD 4.62 billion in 2012, around USD 200 million less than in 2011. The company also saw pre-tax EBITDA profits of nearly USD 77 million last year, compared to some USD 5.9 million in 2011. The overall net result for the year was however a USD 157 million loss, significantly lower than the USD 258 million loss recorded in 2011. Rompetrol Rafinare is a member of the Rompetrol group, handling refining of crude oil and distribution of petroleum products, as well as petrochemical production. Kazakh oil and gas company KazMunaiGaz bought 75 percent in Romania- based Rompetrol from its former owner, Dinu Patriciu, in 2007. It bought the remaining 25 percent in 2009.