Growing results for Rompetrol Rafinare, in the first quarter of 2023

*Note: The consolidated financial statements of Rompetrol Rafinare include the results of Rompetrol Rafinare S.A. and those of the subsidiaries Rompetrol Quality Control S.R.L., Rom Oil S.A., Rompetrol Downstream S.R.L., Rompetrol Logistics S.R.L., Rompetrol Gas S.R.L. and Rompetrol Petrochemicals S.R.L.

Rompetrol Rafinare, member company of the KMG International Group (Rompetrol), reached, in the first quarter of 2023, a consolidated gross turnover of about 1.3 billion dollars, up 10% compared to the same period last year. The evolution was driven by the higher amount of raw materials processed and products obtained in the Petromidia refinery, which supported the increase in sales volumes compared to Q1 2022.

The operational profit (EBITDA) recorded was 100 million dollars, and the net result was a positive one, of 14.5 million dollars, despite the decrease in quotations on the international market of crude oil and refined products - decreases of 20% to crude oil, 10% for gasoline and 8% for diesel compared to Q1 levels last year.

The increasing results were also achieved in the context where, for approximately 10 days, the Petromidia refinery operated at reduced capacity for maintenance work, at the beginning of February.

Rompetrol Rafinare continued to sell the products obtained, mainly on the domestic market, to ensure the increased demand for fuels in Romania. Thus, in Q1 2023, the company directed 63% of the gasoline and diesel produced in Petromidia to the domestic market.

At the same time, Rompetrol Rafinare supported, with important volumes of petroleum products, 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 quarter of the year amounted to 334 million dollars, up 22% compared to the Q1 2022 period, against the background of a 45% higher volume of the quantities of exported products - 462 thousand tons in the period January - March 2023.

Rompetrol Rafinare was, also in the first quarter of the year, a major contributor to Romania's state budget, paying over 367 million dollars in the first three months of 2023.

The significant shareholders of Rompetrol Rafinare SA are KMG International (54.63% - directly and indirectly) and the Romanian State, through the Ministry of Energy (44.7%).

Refining segment*

Financial indicator		Q1 2023	Q1 2022
Gross turnover	USD	1,117,123,660	979,353,940
EBITDA	USD	100,061,689	(66,720,962)
Net result	USD	22,246,781	(100,349,838)
Operational indicator
Raw materials processed - Petromidia	kt	1,279	980
Raw materials processed - Vega	kt	76	69
Fuel sales - internal	kt	572	466
Fuel sales - export	kt	329	239

*Note: The refining segment includes the results of the Petromidia Năvodari and Vega Ploieşti refineries. Rompetrol Rafinare calculates the gross refining margin as follows - (Sales of petroleum products - Cost of raw material) / Sales volume. Net refining margin is operational profit (EBITDA) divided by sales volume.

The company's refining segment recorded growing results, in terms of gross turnover - 1.1 billion dollars, an evolution of 14% compared to Q1 2022. Also, Rompetrol Rafinare managed to achieve positive results in terms of operational profit (EBITDA) – 100 million dollars, respectively the net result – 22.3 million dollars.

In the first quarter of 2023, the Petromidia refinery processed 1.28 million tons of raw materials, the crude oil coming exclusively from Kazakhstan, with the support of the sole shareholder of the KMGI Group – KazMunayGas.

Volumes increased by 31% compared to Q1 2022, which supported a high production level, with 343 thousand tons of gasoline and 620 thousand tons of diesel fuel produced at the Petromidia refinery. Thus, the largest refinery in the country managed to achieve a yield of white products of 83.51%wt.

Operational results were achieved with a degree of refining capacity utilization of 86%, driven by scheduled technological operations in the first quarter of the year, which included catalyst change and regeneration, decoking and other specific maintenance work.

In the first three months of this year, the Vega Ploieşti refinery increased the amount of raw material processed by 10%, compared to the first quarter of 2022, with over 76 thousand tons of processed raw materials, in order to obtain special petroleum products, with added value on the profile market.

The Vega refinery is the only specialized unit in Romania with the ability to obtain special products, such as road bitumen and that with polymers, hexane or ecological solvents. Bitumen is sold exclusively domestically, Rompetrol Rafinare having a market share of almost 20% of the national requirement, and products such as hexane and ecological solvents are directed, to a large extent, to foreign markets.

Petrochemical segment*

Financial indicator		Q1 2023	Q1 2022
Gross turnover	USD	41,519,090	70,294,102
EBITDA	USD	(19,723,976)	(7,575,157)
Net result	USD	(19,902,393)	(11,322,679)
Operational indicator
Propylene processed	kt	32	27
Ethylene processed	kt	4	10
Polymer total production	kt	26	28
Total sales	kt	36	40

*Note: The petrochemical segment includes the petrochemical activity of Rompetrol Rafinare and the activity of Rompetrol Petrochemicals SRL.

In Q1 2023, the petrochemical division's total polymer production was 26.3 thousand tons, down slightly from the same period last year. In addition, the total sales of the petrochemical segment registered a 10% decrease, reaching 36 thousand tons traded in January-March 2023.

The Low Density Polyethylene (LDPE) plant of the petrochemical segment operates 100% with imported ethylene, and the Polypropylene (PP) plant operates with raw material produced and delivered internally by the Petromidia refinery.

The petrochemical segment is the only producer of polypropylene and polyethylene in Romania, constantly managing to increase its market share, including secondary product categories.

Distribution segment*

Financial indicator		Q1 2023	Q1 2022
Gross turnover	USD	792,860,536	772,603,944
EBITDA	USD	20,684,522	(4,544,141)
Net result	USD	12,987,743	(13,122,078)
Operational indicator
Fuel sales - retail	kt	242	214
Fuels sales - wholesale	kt	195	203
LPG quantities sold	kt	68	75

*Note: The distribution segment includes the results of the subsidiaries Rompetrol Downstream, Rom Oil, Rompetrol Quality Control, Rompetrol Logistics and Rompetrol Gas.

In the first quarter of the year, the consolidated gross turnover of the distribution segment registered a value of more than 792 million dollars, in a slight increase compared to the period January - March 2022.

The average Platts quotes (FOB Med Italy) expressed in dollars (the reference currency), recorded a decrease of almost 8% for diesel and 10% for gasoline respectively. Due to the depreciation of the leu in relation to the dollar, the international quotation of diesel fell, in the national currency (RON), by about 4%, and the international quotation of gasoline, by 6.5%, compared to the period January - March 2022.

The distribution division recorded, in Q1 2023, 13% higher sales in the retail segment (242 thousand tons in January - March 2023), compared to the first three months of 2022. Wholesale fuel sales totaled 195 of thousands of tons, volume down slightly compared to Q1 2022.

At the end of March 2023, Rompetrol Downstrem reached a network of 1,284 sales points (network of own stations, partner stations, mobile stations: express, internal bases of 9 and 20 cubic meters).
 

Corporate Communication and Public Relations
KMG International