|
Consolidated
|
|
Q3 of 2014
|
Q3 of 2013
|
%
|
9 months 2014
|
9 months 2013
|
%
|
|
Gross turnover
|
USD
|
1,554,071,048
|
1,444,610,052
|
8%
|
4,335,781,915
|
3,411,298,316
|
27%
|
|
EBITDA
|
USD
|
37,152,236
|
23,320,027
|
59%
|
62,635,385
|
15,109,653
|
315%
|
|
Net result
|
USD
|
5,215,206
|
(7,687,634)
|
N/A
|
(41,773,065)
|
(86,118,635)
|
N/A
|
Rompetrol Rafinare, a member company of KMG International, recorded a USD 1.55 billion turnover* in the 3rd quarter of 2014 and a USD 5.2 million net positive result pursuant to increasing the quantities of processed raw materials (+12%), optimizing the fuel distribution channels in Romania and decreasing the operational costs. Despite positive Q3 net consolidated result, in the first 9 months of 2014 the net result is still negative, though better than last year. The company recorded a USD 4.33 billion turnover, in the first 9 months of 2014, 27% higher as compared to the same period last year and a 50% higher net profit, which thus turned to a negative value of USD 41.7 million.
„The performance achieved by Rompetrol Rafinare in the third quarter, as well as in the first nine months of the year, reflects our ambition to consolidate and optimise synergies between the largest refinery in Romania and one of the best units in this field in the Black Sea region with the trading and fuel distribution activities in Romania, Moldova, Bulgaria, Georgia and Turkey. Whereas, in relation to the refinery, we have pursued the optimization of the processing activities, the decrease of the processing costs and the increase of the energy efficiency, at the level of the distribution network we have used an integrated approach aimed at modernizing the Rompetrol gas stations along with improving the operation of the 7 depots in Romania, as well as with attracting new customers and consolidating the commercial relations with the traditional partners especially on the wholesale segment” said Cătălin Dumitru, vice-president of KMG International.
EBITDA (profit before interests, tax, depreciation and amortisation) exceeded USD 37 million in the Q3 of 2014, 59% higher than in Q3 of 2013, and exceeded USD 62 million in the first 9 months of 2014 compared to USD 15 million recorded the similar period of last year. During January – September 2014, 3.7 million tonnes of raw materials were processed, 32% more than in the similar period of last year.
The exports of Rompetrol Rafinare exceeded USD 1.6 billion in the first 9 months of 2014, 50% higher than in the same period of last year. In 2013, the value of the company’s exports both to the subsidiaries of KMG International in Moldova, Georgia, Bulgaria, Ukraine, and to other traditional partners in the Black Sea Region amounted to USD 1.7 billion, and the trend is expected to increase, as 2014 is expected to see an approximately 30% increase thereof as compared to last year.
Rompetrol Refining remained an important contributor to Romania’s state budget, paying more than USD 534 million in Q3 of 2014 and over USD 1.3 billion in the first 9 months of 2014. The company’s contribution to the state budget in 2013 was over USD 1.4 billion.
The company Rompetrol Rafinare operates the Petromidia and Vega Refineries and accounts for 43% of Romania’s refining capacity, and the total investments of KMG International and KazMunayGas in the period 2007 – 2013 on the Petromidia platform exceed USD 1.3 billion.
Refining and petrochemicals segment
|
|
|
Q3 of 2014
|
Q3 of 2013
|
%
|
9 months 2014
|
9 months 2013
|
%
|
|
Financial
|
|
|
|
|
|
|
|
|
Gross turnover
|
USD
|
1,414,877,467
|
1,419,248,354
|
0%
|
3,970,579,067
|
3,088,564,127
|
29%
|
|
EBITDA
|
USD
|
14,574,623
|
6,521,775
|
N/A
|
7,518,549
|
(18,577,027)
|
N/A
|
|
Net result
|
USD
|
(9,605,390)
|
(8,360,259)
|
N/A
|
(65,395,733)
|
(86,730,885)
|
N/A
|
|
Operating
|
|
|
|
|
|
|
|
|
Processed raw material
|
kt
|
1,322
|
1,176
|
12%
|
3,743
|
2,834
|
32%
|
|
Internal fuel sales
|
kt
|
507
|
535
|
-5%
|
1,274
|
1,152
|
11%
|
|
External fuel sales
|
kt
|
455
|
352
|
29%
|
1,478
|
936
|
58%
|
|
Petrochemicals sales
|
kt
|
37
|
38
|
-2%
|
113
|
98
|
15%
|
Note: The refining and petrochemicals segment includes the results of Rompetrol Rafinare SA (which operates the Petromidia and Vega refineries) together with the petrochemical activity and results of Rompetrol Petrochemicals SRL.
The refining and petrochemicals segment of Rompetrol Rafinare recorded in the period July-September of 2014 a turnover of USD 1.41 billion USD, similar to the level recorded in the same period of 2013 and an operating result (EBITDA) of USD 14.5 million, compared to USD 6.5 million. In the first 9 months of 2014, the turnover recorded by this segment was increased by 29% up to a value of USD 3.97 billion and EBITA improved, reaching a positive result of USD 7.5 million as opposed to last year’s negative result of USD 18.5 million.
Due to the market conditions in refining sector, the net result recorded in the first 9 months of 2014 is still negative, but improved compared to the similar period of 2013.
The aggregate quantity of raw material processed by the Petromidia Refinery in the period January - September was 3.74 million tons (2.75 million tons of fuels), which is 32% higher than the same period of last year, when the quantity processed was 2.1 million tons of fuels. In Q3 of 2014, approximately 1.32 million tons (+12%) were processed and the refining capacity utilisation degree was 96%, 9.43% higher than the same period of last year.
Pursuant to rendering the processing activities more efficient, in September 2014, the Petromidia Refinery reached a 51.6% record performance for diesel gas, which is the best level attained since its commissioning in 1979, in the context of increasing the refining capacity utilization rate by 10.9% as compared to the similar period of last year. Thus, the refinery attained record minimum levels for the processing cost (17.4 USD/mt) and the utilities costs (8.3 USD/mt).
The Vega Refinery has processed 90 thousand tons of raw material in Q3 of 2014, which is 25% higher than in the same period of the last year. The refinery recorded its best bitumen production in September 2014: more than 10 thousand tons.
In Q3 of 2014, the utilisation degree for the processing unit in Ploiesti was 108%, which is 21% higher than in Q3 of 2013, and almost 90% (+24%) the first 9 months of 2014. The Vega Refinery has processed approximately 220 thousand tons in the first 9 months of this year, 36% higher than the quantity reported in the same period of last year.
In reliance of the prior investments and programs aimed at enhancing the operational and financial flows, Rompetrol Rafinare recorded a net refining margin of USD 11.67 USD/ton in Q3 of 2014 (as compared to 0.11 USD/ton in Q3 of 2013) and of USD 2.24/ton in the first 9 months of 2014 (-9 USD/ton in the similar period of 2013). The company’s financial results have continued to be positively influenced by the more favourable market conditions, as high values of the differential between crude oil and the main oil products obtained were recorded.
At the beginning of the year, the petrochemical activity was transferred to Rompetrol Refining. In the first 9 months of year 2014 the polymer sales reached 113 thousand tons, which is 15% higher than the same period of last year.
In Q3 of 2014 the company released two assortments of polypropylene developed for food packaging and special packages. At the same time, the company conducts a survey in the view of launching a new product intended for use in agriculture.
The distribution segment
|
|
|
Q3 of 2014
|
Q3 of 2013
|
%
|
9 months 2014
|
9 months 2013
|
%
|
|
Financial
|
|
|
|
|
|
|
|
|
Gross turnover
|
USD
|
956,486,718
|
941,302,853
|
2%
|
2,450,911,495
|
2,112,283,335
|
16%
|
|
EBITDA
|
USD
|
23,039,001
|
17,388,850
|
N/A
|
53,670,297
|
32,879,158
|
N/A
|
|
Net result
|
USD
|
10,782,831
|
2,275,682
|
N/A
|
17,722,333
|
2,599,818
|
N/A
|
|
Operating
|
|
|
|
|
|
|
|
|
Fuel quantities - retail
|
kt
|
170
|
181
|
-6%
|
456
|
482
|
-5%
|
|
Fuel quantities - wholesale
|
kt
|
304
|
329
|
-8%
|
761
|
651
|
17%
|
|
GPL quantities sold
|
Kt
|
73
|
72
|
2%
|
211
|
192
|
10%
|
Note: The distribution segment includes the results reported by the subsidiaries of Rom Oil, Rompetrol Downstream, Rompetrol Quality Control, Rompetrol Logistics and Rompetrol Gas
The turnover recorded on the distribution segment in the first 9 months of 2014, was USD 2.45 billion, 16% higher than in the similar period of 2013, by reference to an operational result of USD 53.6 million USD (+63%). In Q3, the turnover reached USD 956 million (+2%) and EBITDA reached USD 23 million (+32%).
Rompetrol Downstream, the retail division of KMG International in Romania, continued in Q3 to optimize the fuel distribution channels by decreasing at the same time the operational costs. Moreover, one of the key projects of the company is to align the fuel distribution stations to a new quality standard of Rompetrol network in the Black Sea region. In the same time, the company developed commercial policies that are more flexible and costumer oriented.
By the end of September 2014, the company has modernized 66 gas stations located both on the main travel routes, as well as in the very proximity of the customers, following for the number of modernized gas stations to increase to 90 units by the end of the year (the estimated investment value exceeds USD 18 million).
In the first 9 months of 2014, the total volumes of fuels sold in Romania reached 1.43 million tons (gasoline, diesel gas, LPG), which is about 8% higher than the indicator recorded in the same period of 2013 (1.32 million tons). Given the consumption decrease recorded at the level of the entire industry market in the 3rd quarter, the company saw an overall decrease of the fuel sales (retail, wholesale, LPG) of approximately 6% as compared to the similar period of 2013.
In the first 9 months of 2014, the currency exchange rate was 2% lower than last year, the USD quotations being 2.1% lower for gasoline and 2.5% for diesel gas, the cumulated effect of these two factors resulting into the actual decrease of the RON quotations by 4.1% for gasoline and 4.5% for diesel gas as compared to the same period of time in 2013. The impact of the fuel excises and the amount thereof discarded these effects and lead to a 4.7% and 4.1% higher average price for gasoline and diesel gas than in 2013.
At the end of September 2014, the distribution segment of Rompetrol Downstream included 746 sales locations (own filling stations, Partner stations, Rompetrol Express, 9 and 20 cubic meter internal bases), 230 GPL distribution stations, 9,000 bottle distribution and 3 GPL bottle-filling stations in Constanta, Arad and Bacau.
KMG International operates over 1,000 fuel distribution locations under the trademarks Rompetrol and Dyneff, in Romania, France, Spain, Republic of Moldova, Georgia, and Bulgaria.
* The consolidated financial statements of Rompetrol Rafinare include the results reported by Rompetrol Rafinare S.A. including the petrochemicals activity, and of 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 results presented are consolidated and not audited, and the reporting was made in compliance with the International Financial Reporting Standards (IFRS).
Communication and Public Relations Department
KMG International