On 23-24th of October, Alik Aidarbaev, the Executive Vice President of the company AO “National Welfare Fund «Samruk-Kazyna»” (FNB «Samruk-Kazyna»), has visited the production site of KMG (KMG or the Group) subsidiary, «KMG International», in Bucharest.
During his visit, Mr. Aidarbaev participated in a business meeting with the Romanian Minister of Energy, Anton Anton, having discussed the possibilities of developing Joint Romanian-Kazakh Investment Fund („Fund”) in the sphere of energy. It is expected that KMGI and the Romanian Ministry of Energy are going to sign an agreement in order to establish the Fund in the nearest future.
During the visit of «KMG International» headquarters, a presentation was held stating Company’s results in the last five years and medium-term development plans. The representatives of the FNB «Samruk-Kazyna» have visited the new gas station «Rompetrol» (the main production brand of KMGI), where a demonstration of the Company’s innovative retail solutions took place.
During this visit, the AO «Samruk-Kazyna» delegation appreciated the results of „Petromidia” Refinery modernization, current production indices and the development plans. It is well-known that the „Petromidia” Refinery is one of the most technologically advanced in the Black Sea Region.
During the visit of the production site, Mr. Aidarbaev, the Executive Vice President of the company AO “FNB «Samruk-Kazyna»”, highly appreciated the work of «KMG International» during the last several years.
As he observed: „Steady growth of financial and operational indices of «KMG International» shows that the anti-crises measures and the transformation program «Change for good», which were carried out with KMGI support, have been very efficient. Under the guidance of the current Kazakh management, the company has reached financial stability and positive indices in main spheres of activity”.
According to the Company’s financial statement, at the end of 2017 the Group has registered record high financial results – the EBITDA value reached 242 million USD, while the net profit value amounted to 80 million USD. Positive results of the first half of the year 2018 show that the steady growth trend, which the Company has been demonstrating during the last 3 years, is going to continue.
At the end of the visit of «KMG International» production sites in Romania, the “FNB «Samruk-Kazyna»” Executive Management has stated that the biggest foreign asset of KMG shall continue its transformation according to the trend set in 10 years of integration into the “KazMunayGas” structure. It has been mentioned that during this period the Company has reached its main strategic goal of extending international presence of KMG and creating a direct transport channel for Kazakh crude oil and oil products on European markets.
In medium-term, it is planned that «KMG International» shall continue its phased development as the key player in the Black Sea Region and the countries of Eastern and Central Europe. In particular, the most promising projects suggest extension of retail network of gas stations in Romania and the Region.
Background
«KMG International N.V.» is a 100% subsidiary of NC “KazMunayGas”. It is an integrated international oil company working in the sphere of oil refining, oil products sales and industrial services on 11 main markets. The Company owns a retail network of more than 1000 gas stations and sales points in Georgia, Bulgaria, Moldova and Romania, where two Refineries of the Company (“Petromidia” of Navodari and “Vega” of Ploiesti) and a petrochemical plant “Petrochemicals” are situated. The activity of the Company is concentrated in the Black Sea Region.
According to the results of the year 2017, EBIDTA of KMGI reached 80 million USD. In 2016 the Company registered EBIDTA in the amount of 14 million USD.
Positive trends and high operational indices are mainly determined by the successful completion of the revamp and production increase program carried out on the main refinery of the Company - “Petromidia” of Navodari. It is currently the biggest refinery in Romania and one of the most technologically advanced refineries in the Black Sea Region.
As a result of the revamp program, the production capacity of Petromidia has reached 5 million tons of crude oil (3,8 million tons before the program), the Refinery has started production of Euro-5 standard fuel, and the processing depth reached 94%. Prime cost of crude oil processing has been reduced from $28 to $16 / ton. During the revamp program of the Refinery, a new petrochemical platform has been constructed, which produces high-density and low-density polypropylene and polyethylene.
Department of Public Relations
«KMG International»