Consolidated* Quarter Iof 2017 Quarter Iof 2016 %
Gross turnover USD 821,449,743 714,807,226 15%
EBITDA USD 34,523,149 34,977,045 -1%
Net result USD (63,549) 40,237 N/A
Rompetrol Rafinare, a company member of the KMG International Group, earned a gross turnover ofUSD 821 million in the first quarter of 2017, 15% higher than the same period of last year according to the unaudited consolidated financial statements prepared in compliance with the International Financial Reporting Standards. EBITDA in the first quarter of this year remained at the similar level of the first quarter of 2016, namely USD 34 million, while the company’s net result got closer to break-even.
The consolidated results of Rompetrol Rafinare were supported by the positive trend in the financial indicators recorded on the refining segment by operation of the refineries Petromidia Năvodariand Vega Ploiești. In the first quarter of 2017, the EBITDA of the two production units amounted to USD 27 million, 31% higher as compared to the same period of last year, the turnover was USD 698 million,21% higher as than the first quarter of 2016, and the net result is 87% higher, reaching –USD 1.3 million.
“Covering more than40% of Romania’s production capacity, the two refineries, Petromidia and Vega, continued to implement the production process optimisation and operation streamlining programmes carried out by the company, as well as to increase the weight of white products such as gasoline, gas-oil and jet fuel within the total finished products. Also, the financial results of this year’s first quarter were positively influenced by the gross refining margin, which is 16% higher than the same period of last year”,according to Yedil Utekov, Chief Executive Officer of Rompetrol Rafinare.
The throughput of Petromidia’s main products reached 86.8% in the first quarter of 2017, which is higher than the same period of last year. Also, the Vega Refinery produced more bitumen in the first quarter of 2017, namely 4,200 tonnes, due to the increasing market demand for this product.
The company exported a total in excess of 531,000 tonnes of products in the first quarter of 2017, thus being Romania’s largest oil products exporter.
Rompetrol Rafinarecontinued to be a significant contributor to Romania’s state budget, with more than USD 253 million paid in the first quarter of 2017and more than USD 1.277 billion paid for 2016. The contributions to the state budget exceeded USD 12.5 billionin the period 2007 – 2016.
Financial Quarter I of 2017 Quarter I of 2016 %
Gross turnover USD 698,019,450 576,368,166 21%
EBITDA USD 27,038,887 20,684,805 31%
Net result USD (1,368,524) (10,411,135) 87%
Raw material processed at Petromidia kt 1,201 1,297 -7%
Domestic fuel sales kt 464 377 23%
Foreign fuel sales kt 397 559 -29%
Note: The refining segment includes the results of Rompetrol Rafinare SA (that operates refineries Petromidia and Vega)
The gross turnover on the refining segment reached USD 698 million in the first quarter of 2017, 21% higher than the same period of 2016, and mainly influenced by the increase in the international oil product quotations. Crude oil quotations on the international market averaged around USD 50/bbl, in the first quarter of 2017.
In the first quarter of 2017, the total quantity of raw material processed by the Petromidia Refinery was 1.2 million tonnes, 7% lower than the same period of last year, when approximately1.3 million tonnes had been processed. The refinery’s production was mainly impacted by the bad weather in January 2017, as well as by the scheduled shutdown of some of the installations for required maintenance works.
However, the gross refining margin was 16% better in the first quarter of 2017 as compared to the same period of last year, reaching the level of USD 49/tonnes as compared to USD 42.3 USD/tonnes in the first quarter of 2016
The Vega Refinery processed a total of 60,834 tonnes in the first quarter of 2017, 8.15% less than the same period of last year when they processed 66,231 tonnes.
Financial Quarter I of 2017 Quarter I of 2016 %
Gross turnover USD 40.610.359 50.431.130 -19%
EBITDA USD (445.002) 3.216.390 N/A
Net result USD (3.581.070) 3.183.119 N/A
Propylene processed kt 34 33 2%
Ethylene processed kt 11 17 -31%
Total sales Kt 44 55 -19%
Note: The petrochemicals segment includes the Petrochemical Plant of Rompetrol Rafinare SA and those of the subsidiary Rompetrol Petrochemicals SRL
The petrochemicals division of Rompetrol Rafinare is the only polypropylene producer in Romania, and has constantly managed to increase its market share on the secondary product categories. Its dynamic development strategy has secured the company a competitive position on the domestic market but also on the regional one, in the Black Sea and Mediterranean Sea regions, and Central and Eastern Europe.
On the petrochemicals segment, the company processed more than 45,000 tonnes of raw material in the first quarter of 2017.
Financial Quarter I 2017 Quarter I of 2016 %
Gross turnover USD 500.596.517 427.584.342 17%
EBITDA USD 7.865.022 11.910.512 -34%
Net result USD 3.111.496 9.176.632 -66%
Fuel quantities - retail kt 146 136 7%
Fuel quantities - wholesale kt 257 226 14%
GPL quantities sold Kt 90 67 34%
Note: the distribution segment includes the results of subsidiaries Rom Oil, Rompetrol Downstream, Rompetrol Quality Control, Rompetrol Logisticsand Rompetrol Gas
The consolidated gross turnover for the distribution segment exceeded USD 500 million USDin the first quarter of 2017, 17% higher than the same period of 2016.
Rompetrol Downstream, the retail division of KMG International in Romania, continued to optimise the fuel distribution channels but also to reduce the operating costs, and also to implement of flexible, client-oriented commercial policies.
The company’s fuel sales increased significantly in the first quarter of 2017, both on the retail segmentby 7% and the wholesale segment by 14%, as compared to the same period of last year. The total quantity of GPL sold in the first quarter of this year was34% higher as compared to the first quarter of 2016.
The financial indicators of the distribution segment were influenced by the trend of the internal oil product quotations. Platts quotations (FOB Med Italy-mean) expressed in the reference currency, USD, were approximately 37% higher in average for gasoline and 53% higher for gas-oil in the first quarter of 2017, as compared to the same period of 2016. The approximately 4% depreciation of RON with respect to the American dollar caused the actual appreciation of the two quotations in the domestic currency to reach approximately 42% for gasoline and 60% for gas-oil. At the same time, the domestic VAT was cut down from 20% to 19% as of 1 January 2017, and the fuel excises were cut down by 70 eurocents/1,000 litres; such changes were fully seen in pump prices.
At the end of March 2017, the distribution segment of Rompetrol Downstream operated 752 selling points, including its own stations, partner stations and mobile stations: Expresand 9mc and 20 mc internal bases.
In 2016, the company continued its activity and operation improvement programme through the transfer of the Rompetrol filling stations from the company administration to that of the partners/dealers.In 2017, the filling station network will be expanded by 10 new stations, while the company continues the indoor rebranding of the existing stations; the programme is now 95% complete.
* The consolidated financial statements of Rompetrol Rafinare include the results of Rompetrol Rafinare S.A., including the petrochemicals activity and those of subsidiaries Rompetrol Petrochemicals SRL, 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 here are unaudited and consolidated, and the reporting is compliant with the International Financial Reporting Standards (IFRS).