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Rompetrol Rafinare's results, declining in the first half of 2024
Rompetrol Rafinare, a member company of the KMG International Group (Rompetrol), recorded, in the first half of 2024, a gross turnover of 2.1 billion dollars and an operational result (EBITDA) of almost 45 million dollars, indicator that measures the company's profitability before deducting depreciation, interest, fees and taxes.
The financial results were influenced by the planned shutdown of the Petromidia refinery, between March and May 2024, but also by the volatility of international quotations for raw materials (crude oil, bio components) and petroleum products.
"An impact on the company's results was determined by the general turnaround from this spring, a mandatory project that offers us prospects of amortizing the losses from the first part of the year, the Petromidia refinery currently operating at optimal capacity, with a competitive production level, adapted to current market needs. We continue to be a partner of the Romanians, by directing the products, particularly, to the Romanian market", said Florian Daniel Pop, General Manager of Rompetrol Rafinare.
Part of the general strategy of the KMGI Group, to meet the demand of Romanian consumers, 73% of the total fuels obtained between January and June 2024 were directed to the domestic market. Thus, Rompetrol Rafinare made constant efforts to support stability in the energy sector, despite the significant reduction in production yields, as a result of the works carried out as part of the general turnaround.
At the same time, Rompetrol Rafinare supported the subsidiaries of the KMG International Group, Rompetrol being the most important fuel supplier in the Republic of Moldova, Georgia and with a significant presence in Bulgaria.
The total value of exports made by Rompetrol Rafinare (through the refining and petrochemical divisions) in the first half of the year, amounted to 344 million dollars, against the background of a volume of 454 thousand tons of petroleum products exported in January - March 2024.
Rompetrol Rafinare continues to be one of the largest contributors to the state budget, with 669 million dollars paid in the first 6 months of 2024. Of the total, 30.3 million dollars represents the solidarity contribution for 2023, and 3.5 million dollars represents the turnover tax, related to the first quarter of 2024.
The refining segment achieved a gross turnover of 1.73 billion dollars and an operational profit (EBITDA) of 33.9 million dollars.
European gasoline and diesel margins have seen massive fluctuations in the first half of 2024, particularly in March, amid geopolitical tensions and logistical disruptions in the region. Also, the general turnaround of the Petromidia refinery, as well as the non-operation of the Mild Hydrocracking (MHC) unit in the first quarter of the year, led to a decrease in the degree of utilization of the refining capacity, up to 65.3%.
The general turnaround of the Petromidia refinery represented a major financial and operational effort, aimed at maintaining an optimal level of operation of the refinery, in the best conditions of safety and labor security. About 85 million dollars were invested in development programs alone, which included modernization projects in Petromidia's main facilities.
These factors led to the processing of 1.73 million tons of raw materials, a decrease of 35% compared to the first half of 2023. From the total volumes processed, 421 thousand tons of gasoline and 966 thousand tons of diesel were obtained.
Despite the results affected by the mentioned factors, the refinery managed to obtain an increasing yield of white products - 87.04%wt, and the technological loss was 0,6%wt.
Regarding the Vega refinery (the only domestic producer of bitumen and hexane), the total raw material processing was around 117 thousand tons in the first half of 2024, down 39% compared to the same period last year, a level determined directly by the low quantities of components received from the Petromidia refinery.
The Vega refinery recorded good operational parameters, with a technological consumption of 0.54%, energy consumption of 2.77 GJ/t and mechanical availability of 98.8%.
In the first half of 2024, the total production of polymers in the petrochemical segment was 24 thousand tons, down from the same period last year, when 58 thousand tons were produced.
The operational results were influenced, mainly, by the non-operation of the Low-Density Polyethylene (LDPE) plant, caused by the unfavorable conditions on the petrochemical products market, but also against the background of the scheduled general turnaround period, which started in March 2024.
Despite the current market conditions, the only petrochemical division in Romania continued to honor its deliveries to partners in the relevant industries, thus supporting several production segments in the country.
The petrochemical segment is the only producer of polypropylene and polyethylene in Romania, with the ability to regain its competitive position on the domestic and regional market, with the stabilization of the profile market.
In the first half of the year, the distribution segment's consolidated gross turnover was 1.55 billion dollars, down slightly from January to June 2023 levels. The segment's operational profit (EBITDA) remained at a level similar to last year – 39.6 million dollars.
The international quotations related to petroleum products recorded, in the first semester, a slight increase compared to the same period last year, by 2% for gasoline and 3% for diesel. Domestically, the evolution of fuel prices was influenced by the change in the excise tax from January 1, which was reflected in an increase of 29 bani per liter of gasoline and 26 bani for diesel.
Sales in the retail segment registered a 12% increase and reached 578 thousand tons of fuels, in Romania, the main market for the products obtained in the Petromidia refinery. The increase was determined by the sales strategy through which Rompetrol Rafinare directs about three quarters of its fuel to the domestic market.
On the other hand, wholesale numbers were strongly affected - a decline of 38% - by the decrease in production yields, but also by the access to the market of finished products from outside the EU space, at low quotations, compared to the products obtained in European refineries.
At the end of June 2024, the distribution network in Romania reached 1,328 sales points. The network includes its own stations, partner stations and mobile stations: express, internal bases of 9 and 20 cubic meters.