| Consolidated | Quarter II 2014 | Quarter II 2013 | % | Quarter I 2014 | Quarter I 2013 | % | |
|---|---|---|---|---|---|---|---|
| Gross turnover | USD | 1.474.961.983 | 1.082.351.174 | 36% | 2.781.710.867 | 1.966.688.264 | 41% |
| EBITDA | USD | 16.108.104 | (8.091.336) | N/A | 25.483.149 | (8.210.374) | N/A |
| Net result | USD | (20.161.506) | (53.247.757) | N/A | (46.988.271) | (78.431.001) | N/A |
Rompetrol Rafinare, a company member of KMG International, recorded during the first half of the year an increase by around 40% of the gross* turnover and of the net result as compared to the similar period in 2013.
Therefore, the company recorded during the first half a turnover of USD 2.78 billion, as compared to USD 1.96 billion in the first half of 2013, and a negative net result of USD 46.9 million, increasing as compared to a negative level of USD 78.4 million during the same period of the previous year. Concurrently, the operational result (EBITDA) significantly increased in the first half of 2014, reaching the value of USD 25.5 million by reference to a negative indicator of USD 8.2 million during the similar period in 2013.
Financial indicators have been mainly supported by the positive operational results – processed raw materials (+46%), by the fuel sales on the domestic market (+24%) and at export (+75%), but also by the decrease of processing costs through the increase of energy efficiency and the maintenance of the mechanical and operational availability. Although the net result has been adversely influenced by the local economic environment, the evolution of international quotations both at finished products and at raw materials has been constant and has not recorded any major deviations during the first half of 2014 as compared to the same period of the previous year.
Rompetrol Rafinare, through the Petromidia (including the petrochemical activity) and Vega Refineries, processed over 2.4 million tonnes of raw material during the first half of 2014, by 46% more as compared to the same period of the previous year. The Petromidia Refinery operated at its maximum capacity of 14,000 tonnes per day, exceeding the maximum level of processed quantity by 7% in May 2014, when it processed over 465,000 tonnes of raw material, the highest level it has ever reached since its commissioning in 1979.
The exports performed by Rompetrol Rafinare reached in the first half of the current year a level of over USD 1 billion. In 2013, the value of the fuels delivered abroad, both to the subsidiaries of KMG International in Moldova, Georgia, Bulgaria, Ukraine, and to other traditional partners within the Black Sea region, reached USD 1.7 billion, the estimates for the present year targeting an increase of exports by over 20%.
Rompetrol Rafinare continues to remain a significant taxpayer to Romanian state budget, its contribution in the first half of 2014 being of USD 779 million (USD 460 million during April-June). The company’s contribution to the state budget in 2013 was of over USD 1.4 billion.
By over 5 million tonnes per year, the company represents 43% of the Romanian state’s refining capacity, and the total investments performed by KMG International and KazMunayGas in the period 2007-2013 on the Petromidia Platform amount to over USD 1.3 billion.
Refinery and Petrochemicals segment
| Quarter II 2014 | Quarter II 2013 | % | Quarter I 2014 | Quarter I 2013 | % | ||
|---|---|---|---|---|---|---|---|
| Financial | |||||||
| Gross turnover | USD | 1.342.708.110 | 890.431.386 | 51% | 2.555.701.600 | 1.669.315.773 | 53% |
| EBITDA | USD | (1.770.252) | (15.478.766) | N/A | (7.056.074) | (25.098.802) | 72% |
| Net result | USD | (25.585.446) | (53.202.475) | N/A | (55.790.343) | (78.370.626) | N/A |
|
Operational
|
|||||||
| Processed raw materials | kt | 1.231 | 1.037 | 19% | 2.420 | 1.658 | 46% |
| Fuel sales on the domestic market | kt | 424 | 376 | 13% | 767 | 617 | 24% |
| Fuel sales on the external market | kt | 473 | 334 | 42% | 1.023 | 584 | 75% |
| Sales of petrochemical products | kt | 37 | 27 | 34% | 76 | 60 | 26% |
Note: The refining and petrochemical segment comprises the results of the company Rompetrol Rafinare SA (which operates the Petromidia and Vega Refineries) together with the petrochemical activity and the results of Rompetrol Petrochemicals SRL.
The turnover of the company Rompetrol Rafinare reached USD 1.3 billion in quarter II 2014, being by 51% higher as compared to the same period of 2013, being positively influenced by the increase of sold volumes and by the increase of international quotations of petroleum products.
The fuel sales performed by Rompetrol Rafinare in quarter II 2014 increased by 13% for the domestic market and by 42% for the external market, whereas the sales of petrochemical products increased by 34%, as compared to the same period of the previous year. During the first half of this year, the company sold 767 thousand tonnes of fuels on the domestic market (an increase by 24% as compared to the first half of 2013), exported over 1 million tonnes of fuel (increase by 75%). Furthermore, an increase of 26% was recorded for the sales of petrochemical products.
The production of diesel fuel and jet fuel significantly increased in the first half of 2014, by almost 60% as compared to the similar period in 2013, up to 1.22 million tonnes. In quarter II 2014, the refinery produced 636 thousand tonnes of diesel fuel and jet fuel, by 33% more than in quarter II 2013.
The production of gasoline of the Petromidia Refinery amounted to 322 thousand tonnes in quarter II 2014, reaching an increase by 17% as compared to the same period of the previous year. In the first half of 2014, the production of gasoline increased by 33% as compared to the first half of 2013 and reached a total of 657 thousand tonnes.
For the Petromidia refinery, the rate of use of the refining capacity was of 90.52% in quarter II 2014, being by 9.97% higher as compared to the similar period of the previous year.
With respect to Vega Refinery, it processed 80.5 thousand tonnes of raw material in quarter II 2014, being by 34% higher as compared to quarter II 2013. The rate of use of the Vega Refinery’s capacity was of 97.68%, in quarter II 2014, being by 25% higher as compared to the similar period of 2013.
Starting with 1 January 2014, the petrochemical activity has been taken over by Rompetrol Rafinare, the polymer production was higher by 20% in quarter II 2014 as compared to the same period of the previous year. The evolution of the production, but also of the sale of petrochemical products positively influenced the company’s operational results.
The company has developed two new types of polypropylene used for foodstuff packaging and for special packaging. Moreover, the company intends to develop a new product intended for the agricultural field, aimed at ensuring protection against ultraviolet rays.
Distribution segment
| TRIM II 2014 | TRIM II 2013 | % | SEM I 2014 | SEM I 2013 | % | ||
|---|---|---|---|---|---|---|---|
| Financial | |||||||
| Gross turnover | USD | 848.542.534 | 667.769.633 | 27% | 1.494.424.777 | 1.170.980.482 | 28% |
| EBITDA | USD | 17.811.783 | 8.105.614 | N/A | 30.631.296 | 15.490.308 | N/A |
| Net result | USD | 5.391.918 | 1.391.753 | N/A | 6.939.502 | 324.136 | N/A |
| Operational | |||||||
| Fuel quantities - retail | kt | 150 | 167 | -10% | 285 | 301 | -5% |
| Fuel quantities - wholesale | kt | 263 | 205 | 28% | 458 | 322 | 48% |
| Sold LPG quantities | kt | 74 | 62 | 18% | 138 | 120 | 15% |
Note: The distribution segment comprises the results of the subsidiaries Rom Oil, Rompetrol Downstream, Rompetrol Quality Control, Rompetrol Logistics and Rompetrol Gas
During the first six months of this year, the distribution segment of Rompetrol Rafinare recorded a turnover of around USD 1.5 billion, being by 28% higher as compared to the first 6 months of 2013. Furthermore, it increased its net result up to a level of USD 6.9 million.
The total sales of fuels through Rompetrol Downstream, the retail division of KMG International in Romania, increased in the first half 2014 by 18%, from 743 thousand tonnes to 881 thousand tonnes. Given the introduction of the new excise duty starting 1 April, the sales recorded in quarter II a significant regression on the retail segment, yet they maintained themselves on an ascending trend by reference to quarter II 2013 (+12%).
As compared to the first quarter of this year, the company managed to reach in quarter II an increase by 24% of the quantities sold through the retail segment, by 35% through the wholesale segment and by over 15% of the liquefied petroleum gas quantities.
The results obtained in the first half of this year have been mainly supported by the cost improvement programme, but also by an increase of the quantities delivered through wholesale delivery, within the context of a strengthening of commercial partnerships, and also by attracting new customers, both directly and by means of the electronic public procurement system.
Rompetrol Downstream modernized in the period January – July a number of 38 gas stations, and by the end of this year the company has set itself as goal to complete modernization works for other 52 gas stations and 20 shops thereof. The estimated total investment amounts to over USD 18 million.
In April, the company opened a gas station in Işalniţa, on the road connecting Craiova and Drobeta Turnu Severin or Târgu Jiu, such investment amounting to around USD 1.6 million. Furthermore, the company opened in quarter II a working unit in Oneşti (through the lease of a storage capacity at Rafo Refinery), which ensures a consolidation of the deliveries of fuels in the Moldavian region.
In Romania, the company operates over 744 fuel distribution units (company-owned gas stations, Partner gas stations, Rompetrol Express, internal bases of 9 and 20 cubic metres), 230 LPG distribution stations, 9,000 cylinder distribution units and 3 LPG filling stations in Constanţa, Arad and Bacău. The operation of 6 direct deposits (Arad, Craiova, Mogoşoaia, Simleul Silvaniei, Vatra Dornei and Zărneşti) and of an indirect one within the premises of the Petromidia Refinery is added to the foregoing.
* The consolidated financial statements of Rompetrol Rafinare include the results of Rompetrol Rafinare S.A.. inclusively the petrochemical activity 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. and Rompetrol Gas S.R.L.
** The presented results are unaudited and consolidated, and the reporting was performed in accordance with the International Fianancial Reporting Standards.
Department of Communication and Public Relations
KMG International