Rompetrol Rafinare, a member company of The Rompetrol Group, has continued to improve its consolidated net profit* in the first 9 months of 2013, by 25% decrease in net loss as compared to the same period last year. Therefore, it reached USD 86.11 million, by reference to USD 114.99 million in the same period of 2012 and followed the positive trend in the first semester of 2013 by 40% decrease as compared to the same period of previous year, when recording a negative value of USD 78.43 million.
| Key Financial Ratios – Consolidated | Currency | Quarter III 2013 | Quarter III 2012 | 9 months 2013 | 9 months 2012 |
% (9 months) |
|---|---|---|---|---|---|---|
| Turnover | USD | 1,444,610,052 | 1,155,960,110 | 3,411,298,316 | 3,425,213,853 | 0% |
|
Operating Profit (EBITDA) |
USD | 23,320,027 | 50,868,292 | 15,109,653 | 21,783,204 | N/A |
| Net Result | USD | (7,687,634) | 16,846,637 | (86,118,635) | (114,991,009) | N/A |
In quarter III of 2013, Rompetrol Rafinare reached a consolidated gross** turnover of USD 1.44 billion, recording an increase by up to 25% as compared to quarter III of 2012, whereas during the first nine months it maintained a level similar to the same period in 2012, i.e. USD 3.41 billion.
The main factors causing the improvement of the consolidated financial results of Rompetrol Rafinare were the increase in the usability of Petromidia refinery at 92.90%, an increase by 13.46% as compared to the same period last year, once with the operation thereof at the maximum capacity of 14,000 tons a day in May-June and September 2013.
Following an extensive program of modernization and increase of the processing capacity to 5 million tons per year, supported by The Rompetrol Group and its sole shareholder, KayMunazGas, refinery plants are operated to the highest performance standards in accordance with the commitments undertaken on compliance of environmental protection rules. Petromidia Refinery is the first in Romania to receive the Integrated Environmental Authorization, after having completed the transition period in view of aligning with the European standards in the field.
Although the company's consolidated financial results have improved, they continued to be adversely affected by hostile market conditions, which resulted in a 61% decrease in the differential between Brent and Urals crude oil from USD 0.96/bbl in the first nine months of 2012, to USD 0.37/bbl for the same period in 2013, as well as a decrease in quotes for major oil products obtained. Quotations have declined on average by 4% for gasoline and diesel, against a EUR/USD exchange rate decrease by 3%.
The distribution segment was positively influenced by a significant increase in wholesales by 63% in quarter III of 2013, and further optimisation of sales channels and cost reduction programmes. The distribution segment includes the results of Rom Oil, Rompetrol Downstream, Rompetrol Quality Control, Rompetrol Logistics and Rompetrol Gas subsidiaries.
Rompetrol Petrochemicals’ financial results were positively influenced by the good margins for petrochemicals, as the company is the sole producer of polymers in Romania. In the first nine months of 2013, the operating result (EBITDA indicator) supported by these quotations, reached a positive value of USD 3.72 million. Still in the first 9 months of 2013, net loss was reduced to half the amount, to USD 8.5 million from USD 16.19 million, in the same period last year.
Rompetrol Rafinare S.A. continued to be a major contributor to the Romanian State budget, paying USD 997 million in the first 9 months of 2013.
Refining Segment
| Refining Segment | Currency | Quarter III 2013 | Quarter III 2012 | 9 months 2013 | 9 months 2012 |
% (9 months) |
|---|---|---|---|---|---|---|
| Financial | ||||||
| Gross Turnover | USD | 1,308,366,871 | 1,082,072,081 | 3,026,112,054 | 3,169,681,442 | -5% |
| EBITDA | USD | 2,188,943 | 45,739,195 | (22,300,342) | 11,270,564 | N/A |
| Net Profit | USD | (7,108,892) | 24,394,469 | (78,313,497) | (88,564,763) | N/A |
| Operational | ||||||
| Processed Raw Materials | kt | 1,176 | 1,029 | 2,834 | 2,995 | -5% |
| Domestic Fuel Sales | kt | 535 | 437 | 1,152 | 1,118 | 3% |
| Export Fuel Sales | kt | 352 | 283 | 936 | 967 | -3% |
Rompetrol Rafinare S.A. recorded a negative net result amounting to USD 78.31 million, after the first nine months of 2013, a better result by reference to the same period of 2012, when the loss amounted to USD 88.56 million.
The gross turnover of Rompetrol Rafinare amounted to USD 3.026 billion in the first nine months of 2013, recording a decrease by 5% by reference to the same period of 2012, due to a decrease of international prices of oil products and a production outage of Petromidia refinery during March-April 2013.
Company's financial results were heavily influenced by the development of refining margin, which decreased significantly in both quarter III, by 64% and in the first nine months of 2013, by 34%, as compared to the same periods last year. This was negatively influenced by lower international quotes of oil products and Brent - Ural differential (minus USD 0.33/bbl in quarter III of 2013).
In quarter III, Petromidia processed 1.18 million tons of raw materials, an amount increased by 13% compared to the same period of 2012, which resulted in a sales increase by 23%, compared to quarter III of 2012, respectively 887,000 tons.
In the first nine months, total fuel sales came to 2.088 million tons, similar to the same period of 2012, of which exports accounted for 45% whereas domestic sales for 55%.
Petromidia covers 43% of Romania's refining capacity whereas the total investment made by The Rompetrol Group and its sole shareholder, KazMunayGas during 2007-2012 amounts to USD 1.3 billion.
Distribution Segment
| Distribution Segment | Currency | Quarter III 2013 | Quarter III 2012 | 9 months 2013 | 9 months 2012 | % (9 months) |
|---|---|---|---|---|---|---|
| Financial | ||||||
| Gross Turnover | USD | 941,302,853 | 725,637,326 | 2,112,283,335 | 1,954,726,289 | 8% |
| EBITDA | USD | 17,388,850 | 14,454,691 | 32,879,158 | 21,154,449 | 55% |
| Net Result | USD | 2,275,682 | (3,529,359) | 2,599,818 | (26,424,692) | N/A |
| Operational | ||||||
| Retail Quantities Sold | kt | 181 | 194 | 482 | 508 | -5% |
| Wholesale Quantities Sold | kt | 329 | 201 | 651 | 528 | 23% |
Note: The distribution segment comprises the results of the subsidiaries Rom Oil, Rompetrol Downstream, Rompetrol Quality Control, Rompetrol Logistics and Rompetrol Gas
The gross turnover of the distribution segment was USD 2.112 billion, during the first nine months of 2013, recording an increase by 8% compared to the same period of 2012.
The increase of wholesales by 23% in the first nine months of 2013 as compared to the same period of 2012, the optimization of sales channels and the reduction of costs have conducted to the final results. This resulted in an operating result increase by 55% during January-September 2013, by reference to the same period last year. EBITDA recorded USD 32.87 million in the first nine months of 2013 as compared to the level of USD 21.15 million in the similar period last year. These factors have led to profit gain, realizing a net financial result of USD 2.59 million in the first nine months of 2013.
At the end of September 2013, the distribution segment of Rompetrol Downstream would consist of 754 points of sale, including own filling stations network, partner stations and express mobile stations, 9 and 20 m3 internal bases. In addition, The Rompetrol Group operates 230 auto LPG stations, 9.000 cylinders distribution points and three LPG filling stations in Constanta, Arad, Bacau, with an aggregate bottling capacity of 60,000 tons of LPG per year.
Petrochemical Segment
| Petrochemical Segment | Currency | Quarter III 2013 | Quarter III 2012 | 9 months 2013 | 9 months 2012 |
% (9 months) |
|---|---|---|---|---|---|---|
| Financial | ||||||
| Gross Turnover | USD | 68,296,325 | 47,027,175 | 171,458,088 | 179,046,285 | -4% |
| EBITDA | USD | 4,332,832 | (3,670,152) | 3,723,315 | (8,445,932) | N/A |
| Net Result | USD | (1,405,666) | (4,704,160) | (8,571,687) | (16,193,854) | N/A |
| Operational | ||||||
| Processed Propylene | kt | 29 | 32 | 75 | 91 | -17% |
| Processed Ethylene | kt | 22 | 4 | 40 | 37 | 9% |
| Total Sales | kt | 45 | 38 | 115 | 130 | -11% |
Rompetrol Petrochemicals’ gross turnover reached USD 171.45 million in the first nine months of 2013, thus recording a decrease by 4% as compared to the same period last year, due to the planned outage of Petromidia refinery during March-April that impacted the financial results of the company.
As compared to 2012, the financial results were positively impacted by the good margins for the petrochemical products, especially in January and June and quarter III when the EBITDA indicator supported by such quotations, reached a positive value of USD 1.5 million (January 2013) and USD 0.9 million (June 2013) and USD 4.33 million (Quarter III 2013).
The company halved its net loss, i.e. from USD 16.19 million in the first nine months of 2012 to USD 8.57 million during January-September 2013.
The quantity of raw materials processed in the first nine months of the current year has been 115 million tons and the weight of compliant products in the total of petrochemicals amounted to 97.64%.
Rompetrol Petrochemicals is the sole polypropylene producer in Romania, and has since 2010 also been the sole polyethylene producer, the company thus managing to constantly increase its market share. The company has an annual production output of more than 200,000 tons of polymers (polypropylene, low and high density polyethylene).
* The consolidated financial statements of Rompetrol Rafinare include the results of Rompetrol Rafinare S.A. and those of subsidiaries Rompetrol Petrochemicals S.R.L., Rom Oil S.A., Rompetrol Downstream S.R.L., Rompetrol Quality Control S.R.L. and Rompetrol Logistics S.R.L. (together with Rompetrol Gas S.R.L.).
** The results presented are unaudited and consolidated, and the reporting was conducted in compliance with the International Financial Reporting Standards (IFRS).