Rompetrol Rafinare increases operating profit as refining volumes and margins go up

Rompetrol Rafinare, the company that operates Romania’s biggest oil refinery Petromidia, posted an operational profit (EBITDA) of USD 183 million, 62% higher than in 2015, despite a 10% drop in the company’s net turnover, to USD 2.44 billion. The turnover decline was determined by the lower oil and fuel prices. However, Rompetrol Rafinare processed more oil last year, at higher refining margins, and recorded higher fuel sales. “The operational results marked by historical records of Petromidia and Vega refineries were achieved further to the constant programs for modernizing production installations, and those to optimize industrial processes and cut operation costs. In 2016, the Petromidia refinery registered a historical level of processed raw material, of 5.4 million tons/year, given the improvement of the energetic intensity index and the cutting of processing costs to the lowest level in the last 10 years, of USD 16.7/ton,” said Yedil Utekov, general manager of Rompetrol Rafinare. In 2016, the quantity of raw material processed by the Petromidia refinery amounted to 15,700 tons/day, higher by 9% as compared to 2015. The production of gasoline increased to 1.25 million tons while the Diesel production amounted to 2.52 million tons in 2016, thus marking historical production records for these categories of products. The gross refining margin was 23% higher compared to 2015, due to lower oil prices. The company’s internal fuel sales also increased by 13%, mainly supported by higher wholesale volumes, while the exports went up by 4%. At the end of December 2016, the distribution segment of Rompetrol Downstream included 734 merchandising points, including the network of own stations, partner stations operated by the client and dealers, mobile stations. Rompetrol Rafinare posted a net profit of USD 49.8 million in 2016, down by 23% compared to 2015, mainly due to fiscal factors. Rompetrol Rafinare is controlled by KMG International, an international group based in the Netherlands and owned by the state oil company of Kazakhstan – KazMunayGas. KMG International owns some 55% of the shares with the Romanian state holding 44.7%. The state has been discussing the sale of a 26.7% stake in Rompetrol Rafinare to KMG International for USD 200 million and plans to keep the remaining 18%. Meanwhile, Chinese group CEFC is close to completing the takeover of a 51% stake in KMG International, which would make it the indirect owner of Rompetrol Rafinare. KMG International announces major investments in Romania after takeover by Chinese group editor@romania-insider.com