| Main financial indicators – Consolidated | Currency | Q1 2015 | Q1 2014 | % |
| Gross turnover | USD | 877,993,568 | 1,306,748,884 | -33% |
| Operational profit (EBITDA) | USD | (10,720,590) | 9,375,045 | N/A |
| Net result | USD | (517,852) | (26,826,765) | -98% |
Rompetrol Rafinare, a member company of KMG International, witnessed a significant improvement of the net consolidated result* in the first quarter of 2015 as compared to the same period of 2014 (-98%), the negative value being approximately 518 thousand USD as compared to that of 26.8 million USD (Q1 2014).
The evolution of this indicator was supported by the increase in the amounts of the raw materials processed by the two refineries operated by the company – Petromidia Năvodari (+5%) and Vega Ploieşti (+25%), the flexibility of the processing processes and the reduction in operational costs following the investments in the development of the production facilities.
At the end of 2014, the net consolidated result of the company was improved by 40% (from -95 million USD in 2013 to -58 million USD in 2014) against the increase of production to maximum capacity (5 million tonnes) and of the performance indicators as regards energy efficiency, petroleum product yields and processing costs.
The evolution of international crude oil quotes, that saw a approx. 50% decrease in Q1 2015 as compared to Q1 2014, the dynamics of final prices of petroleum products (-43% for petrol, -44% for Diesel), as well as 20% appreciation of the average exchange rate EUR / USD negatively influenced the results obtained by the company in the first quarter of 2015.
Rompetrol Rafinare recorded a consolidated turnover** of 878 million USD in the first quarter of 2015, 33% down from the same period of 2014, mainly due to the decrease of international petroleum products prices, despite an increase in sales (+1% on the internal market and +4% on the external market in Q1 2015 as compared to Q1 2014).
The operating result of the company followed a decreasing trend in Q1 2015 as compared to the same period of 2014, falling to -10.7 million USD. The indicator was negatively affected by the decrease in the final products prices in the first part of the year following the falling quotations of the raw material, despite maintaining the production cycle and the processed inventories to normal levels (60-day period).
The Rompetrol Rafinare exports saw a 5% increase in Q1 2015, but their value (365 million USD in Q1 2015) followed a downward trend due to the decrease of the market and of the crude and finished product prices.
For this year, the company expects investments amounting to approx. 112 million USD for the continuation of the usual maintenance works and the performance of the operational support works. They are aimed at improving the technological conditions and maximizing crude processing yields. The capital maintenance of the Petromidia and Vega refineries will require an investment of USD 88 million.
Rompetrol Rafinare remains a significant contributor to the Romanian state budget, with payments in excess of USD 289 million in the first quarter of 2015. At the end of 2014, the amount paid to the State budget reached USD 1.8 billion, 28% more than in 2013 (USD 1.4 billion).
Petromidia accounts for 43% of Romania’s refining capacity, with a processing capacity of more than 5 million tonnes/year, while the total investments made by KMG International and KazMunayGas on this platform amount to more than USD 1.3 billion.
The refining segment
| Currency | Q1 2015 | Q1 2014 | % | |
| Financial | ||||
| Gross turnover | USD | 758,304,385 | 1,149,070,265 | -34% |
| EBITDA | USD | (8,422,658) | (4,960,264) | N/A |
| Net result | USD | 19,565,159 | (28,345,831) | N/A |
| Operational | ||||
| Processed raw materials | kt | 1,256 | 1,183 | 6% |
| Internal fuel sales | kt | 347 | 343 | 1% |
| External fuel sales | kt | 574 | 549 | 4% |
Note: The refining segment includes the results of Rompetrol Rafinare SA (which operates the Petromidia and Vega refineries)
The gross result of Rompetrol Rafinare reached USD 758 million in Q1 2015, a 34% drop from the same period of 2014, influenced by the petroleum product market conditions.
The crude quotations in the first semester of 2015 were below both the average of Q4 2014 and the same period of last year, i.e. around 54USD/bbl for Brent crude and 53USD/bbl for Urals crude. In Q1 2015, the levels recorded were of 545 USD/t for petrol and 518 USD/t for Diesel.
The Petromidia refinery processed 1.2 million tonnes in Q1 2015, a 6.2% increase from the same period of last year. In 2014, the production reached an all-time high of processed raw materials – more than 5 million tonnes, and continued without interruption for 365 days, with a processed volume of raw materials of 13,800 tonnes a day. In Q1 2015, the capacity utilization increased to approximately 95%, almost 5% more from the same period of the previous year.
The Vega refinery, the longest refinery in function in Romania (founded in 1905), processed over 64 thousand tonnes in the first quarter of this year, 25% more than in Q1 T1 2014, when more than 51 thousand tonnes were processed. The refining capacity utilization rate was 78%, 16% more than the same period last year. The refinery evolved from a classical unit to a producer and provider of special products and solutions (ecological solvents, bitumen with special destination, ecological fuel for heating or other dedicated products), being the sole producer of n-hexane in Central and Eastern Europe.
The operation of the facilities on the Petromidia and Vega industrial platforms shall be carried out in accordance with the highest standards of performance, while ensuring compliance with the environmental protection commitments.
The petrochemistry division
| Currency | Q1 2015 | Q1 2014 | % | |
| Financial | ||||
| Gross turnover | USD | 50,023,587 | 100,023,744 | -50% |
| EBITDA | USD | (7,819,972) | (325,558) | N/A |
| Net result | USD | (20,016,551) | (1,859,066) | N/A |
| Operational | > | |||
| Processed propylene | kt | 31 | 29 | 9% |
| Processed ethylene | kt | 15 | 12 | 23% |
| Total sales | kt | 54 | 45 | 18% |
The gross turnover of the petrochemistry division reached 50 million USD in Q1 2015, a 50% decrease compared to the same period of 2014, due to the falling relevant market and petrochemical product prices.
The Rompetrol Rafinare petrochemistry division recorded a total polymer production of more than 37 thousand tonnes, 11% higher than the same period last year. Due to the increased production, the total sales surged by 18% in Q1 2015 as compared to Q1 2014. The processed amount of ethylene increased by 23%, while that of propylene increased by 9%. At the end of 2014, the petrochemistry division reached its full polypropylene production capacity – 90 thousand tonnes (79.8 thousand tonnes in 2013 and 86.3 in 2012).
The financial results of the company had been influenced by the faster decrease of selling prices than the decrease of the raw materials prices, especially in January and February, as well by the EUR/USD parity. The stocks of finished products were produced at higher costs and sold at lower prices in January and February 2015, in accordance with petrochemicals prices fall.
Owing to its petrochemistry division, Rompetrol Rafinare is the only internal producer of petrochemical products, with a total annual production capacity of more than 200,000 tonnes of polymers (polypropylene, high and low density polyethylene).
The distribution segment
| Currency | Q1 2015 | Q1 2014 | % | |
| Financial | ||||
| Gross turnover | USD | 467,170,432 | 645,882,243 | -28% |
| EBITDA | USD | 7,887,103 | 12,819,513 | -38% |
| Net result | USD | (4,756,186) | 1,547,584 | N/A |
| Operational | ||||
| Fuel retail sales | kt | 132 | 135 | -2% |
| Fuel wholesales | kt | 189 | 194 | -3% |
Note: The distribution segment includes the results of the subsidiaries Rom Oil, Rompetrol Downstream, Rompetrol Quality Control, Rompetrol Logistics and Rompetrol Gas
In the first three months of 2015, the gross turnover of the distribution segment amounted to USD 467 million, a 28% decrease compared with the first 3 months of 2014.
The evolution of the indicators across this segment was influenced by the Platts quotations in the first quarter of 2015 (FOB Med Italy-average). Taking into account the steep depreciation of the leu against the dollar over the same period, i.e. 20%, the effective decrease of the two quotations in the national currency was 32% for petrol and 32.5% for Diesel.
Both the operating result and the net result were significantly influenced by the excise tax on petroleum products, which were 19.5% higher for petrol and 21.2 % higher for Diesel in Q1 2015 as compared to the same period of last year. Thus, the prices charged at the Rompetrol stations were, on average, 9.4% and 9.8% cheaper for petrol, respectively Diesel than the in same period of 2014.
In 2014, Rompetrol Downstream upgraded 90 filling stations by replacing the visual identity features with the new Rompetrol logo and by performing exterior works. 27 stations are currently in an advanced stage of modernization and the rebranding process will continue in 2015.
At the end of March 2015, the distribution business of Rompetrol Downstream consisted of more than 740 selling points, including its own stations network, the partner stations and the mobile stations.
* The consolidated financial statements of Rompetrol Rafinare include the results of Rompetrol Rafinare S.A., including the petrochemistry activity, and the results of the subsidiaries Rompetrol Quality Control S.R.L., Rom Oil S.A., Rompetrol Downstream S.R.L., Rompetrol Logistics S.R.L. and Rompetrol Gas S.R.L.
** The presented results are unaudited and consolidated, and the reporting was carried out pursuant to the International Financial Reporting Standards (IFRS).
The Public Relations Department
KMG International