| Consolidated Indicator* | Q1 2018 | Q1 2017 | % | |
| Gross Turnover | USD | 1,206,215,530 | 821,449,743 | 47% |
| EBITDA | USD | 34,600,820 | 34,523,149 | 0% |
| Net Result | USD | (3,779,055) | (63,549) | N/A |
Rompetrol Rafinare, a member of KMG International Group, recorded in the first quarter of 2018 an increase by approximately 27% of the raw matters processed in the two refineries – Petromidia Navodari and Vega Ploiesti, against the background of continuing the optimization and improvement programs for processing, logistic and distribution costs.
The results were influenced by the volatility and evolution of the international quotations of the raw matter and oil products, which recorded an appreciation as compared to the similar period from 2017, by approximately 25% in case of crude oil and by 16% for Euro 5 gasoline and 23% for Euro 5 Diesel fuel. At the same time, the net consolidated result obtained in Q1 2018 was affected by the change in the accounting policy at the end of last year, from the cost model to the revaluation model, for a part of the intangible assets.
Thus, the gross turnover recorded by Rompetrol Rafinare amounted in Q1 2018 to more than USD 1.2 billion, on the increase by 47% as compared to the level reached in Q1 2017, the operational result (EBITDA) being at the level of the result obtained in Q1 2017.
The exports made by the refining and petrochemical divisions of Rompetrol Rafinare amounted in the first quarter of 2018 to USD 515 million, double the level reached in Q1 2017, the company remaining Romania’s largest exporter of oil products. Last year, Rompetrol Rafinare's exports amounted to USD 1.34 billion.
The company continued to be an important taxpayer to the budget of the State of Romania, with a contribution of more than USD 330 million in Q1 2018. The value of its contribution to the State budget reached a total level of USD 13.7 billion in the period comprise between 2007 and 2017.
For this year, Rompetrol Rafinare proposed to reach a gross turnover of USD 3.78 billion, an operational result (EBITDA) of approximately USD 146 million and a net profit of USD 35.2 million. Also, this year, the company intends to make investments of approximately USD 57 million (78% in the Petromidia Navodari refinery, 10% in the Vega Ploiesti refinery and 12% within the petrochemical division from the Midia platform).
The main shareholders of Rompetrol Rafinare SA are KMG International (54.63% - direct and indirect) and the State of Romania through the Ministry of Energy (44.69%).
Refining Segment
| Financial Indicator | Quarter I 2018 | Quarter I 2017 | % | |
| Gross Turnover | USD | 1,048,312,071 | 698,019,450 | 50% |
| EBITDA | USD | 29,536,422 | 27,038,887 | 9% |
| Net Result | USD | (2,461,081) | (1,368,524) | 80% |
| Operational Indicator | ||||
| Processed raw matters - Petromidia | kt | 1,527 | 1,201 | 27% |
| Processed raw matters - Vega | kt | 77 | 61 | 26% |
| Sales of fuels on internal market | kt | 455 | 464 | -2% |
| Sales of fuels to export | kt | 708 | 397 | 78% |
Note: The refining segment contains the results of the Petromidia Navodari and Vega Ploiesti refineries
The gross turnover reached by the refining segment amounted to more than USD one billion in Q1 2018, on the increase by 50% as compared to Q1 2017, such increase being influenced by an increase in the volume of the processed/sold products and by the volatility of the international quotations for oil products.
Petromidia Navodari processed in the first quarter of the year a quantity of 1.52 million tons of raw matter (+27%) and reached a refining capacity usage degree [which was] 98.5% (+25%). At the same time, the Vega Ploiesti refinery recorded an increase by 26% of the processed raw matters, up to a level of more than 76,600 tons, and a usage degree of 93% (+19%).
Vega Ploiesti is the longest-running processing unit in Romania, celebrating this year 113 years since the decision to establish it (March 1905), the construction itself (May 1905) and its commissioning (December 1905). With an initial processing capacity of 200,000 tons of crude oil per year, the refinery actually started production in February 1906 when the first oil products were delivered.
The Ploiesti unit is currently operating in perfect synergy with the Petromidia refinery – the largest refinery from Romania and one of the most modern refineries from the Black Sea region. Thus, Petromidia is fully providing the Ploieşti refinery with the raw matters/half-finished gods necessary to obtain special products with a high added value (bitumen, solvents, hexane, heating fuels).
The financial results of the refining segment were positively influenced by the favorable market conditions (the refinery margin USD 44.5/ton), as well as by the continuation of the programs commenced in 2014 regarding the optimization of the production and energy processes (the increase in the weight of the white products out of the total finished products) and the streamlining of the operation costs.
The total sales of fuels amounted in the first quarter to more than 1.16 million tons, on the increase by 35% as compared to the quantity traded in the similar period from 2017. The evolution was supported by the increase by 78% of the quantities exported both to the Rompetrol stations from Moldova, Bulgaria and Georgia, but also to partners from the Black Sea region.
For this year, Petromidia proposed to process a total quantity of 5.44 million tons of raw matters against the background of works specific to crude oil refining activities (decoking, regeneration and replacement of catalysts), after it reached in 2017 a level of 5.66 million tons. At the same time, the Vega refinery intends to reach a level of 387,000 tons of processed raw matters, on the increase by approximately 4% as compared to the volume recorded in 2017.
Petrochemical Segment
| Financial Indicator | Quarter I 2018 | Quarter I 2017 | % | |
| Gross Turnover | USD | 61,192,912 | 40,610,359 | 51% |
| EBITDA | USD | (3,729,147) | (445,002) | 738% |
| Net Result | USD | (5,391,781) | (3,581,070) | 51% |
| Operational Indicator | ||||
| Processed Propylene | kt | 40 | 34 | 18% |
| Processed Ethylene | kt | 19 | 11 | 69% |
| Total Sales | kt | 58 | 44 | 30% |
Note: the petrochemical segment includes the petrochemical activity from Rompetrol Rafinare SA
The petrochemical division of Rompetrol Rafinare recorded in Q1 2018 an increase by more than 50% of it gross turnover as compared to the similar period from 2017, up to a level of USD 61.2 million.
In Q1 2018, the polypropylene (PP) and low density polyethylene (LDPE) plants were operated continuously, the volume of processed raw matters being 59,000 tons (+30%). The raw matter for PP is fully provided by the Petromidia refinery, while – for LDPE- the raw matter is provided from import.
The company proposed to re-start in the following period the high density polyethylene plant, which was discontinued for longer than four years due to the high volatility of the quotations for the raw matter (ethylene) and finished products. In this respect, the plant revision procedures (equipment checks, endorsements, etc.) were commenced in the first quarter of the year.
For this year, the petrochemical division proposed to obtain a quantity of 205,000 tons of polymers, 60% of which being low and high density polyethylene. In 2017, such division obtained 147,000 tons of polymers.
The petrochemical segment is the only polypropylene producer from Romania, constantly succeeding in increasing its market share also for the secondary categories of products. Its dynamic development strategy ensures for the company a competitive position on the internal market as well as on the regional market – the Black Sea region and the Mediterranean Sea region, Central and Eastern Europe.
Distribution Segment
| Financial Indicator | Quarter I 2018 | Quarter I 2017 | % | |
| Gross Turnover | USD | 602,163,912 | 500,596,517 | 20% |
| EBITDA | USD | 10,335,430 | 7,865,022 | 31% |
| Net Result | USD | 3,955,236 | 3,111,496 | 27% |
| Operational Indicator | ||||
| Quantities of fuels - retail | kt | 150 | 146 | 3% |
| Quantities of fuels – in bulk | kt | 230 | 257 | -10% |
| Sold quantities of GPL | kt | 107 | 90 | 20% |
Note: The distribution segment includes the results of subsidiaries Rom Oil, Rompetrol Downstream, Rompetrol Quality Control, Rompetrol Logistics and Rompetrol Gas
The consolidated turnover of the distribution segment amounted to more than USD 600 million in Q1 2018, on the increase by 20% as compared to the result recorded in the similar period from 2017. At the same time, they managed to improve by 31% their EBITDA operational result and by 27% their net profit.
Against the background of increases the taxes applicable to fuels and in the general economic context, the total quantities of fuels traded on the internal market in Q1 amounted to 487,000 tons, on a slight decline as compared the volume obtained in the first quarter of last year.
At the international level, the quotations in USD of the fuels increased in Q1 by approximately 16% for gasoline and by 23% for Diesel fuel. The appreciation by approximately 11% of leu as compared to the US dollar made the actual impact on the national currency of the two quotations be approximately 4% for gasoline and 10% for diesel fuel.
The 2017 increase in the excise duties for fuels (+32 ban/liter) adds to all these facts, as the excise duties were increased by approximately 19% for gasoline and 21% for Diesel fuel.
Rompetrol Downstream continued in the first quarter of the year the extension of its national presence, as well as its rebranding program for its stations (GPL, Partener Rompetrol, Rompetrol Expres). At the same time, the company implemented a new business model, alongside with the continuation of cost reduction actions.
At the end of March, the distribution segment of Rompetrol Downstream had 818 fuel sale points (own stations, partner stations, mobile stations, internal bases of 9 and 20 cubic meters, on the increase by 66 units as compared to Mach 2017.
* The consolidated financial statements of Rompetrol Rafinare include the results of Rompetrol Rafinare SA and the results of the following subsidiaries Rompetrol Quality Control SRL, Rom Oil SA, Rompetrol Downstream SRL, Rompetrol Logistics SRL Rompetrol Gas S.R.L. and Rompetrol Petrochemicals S.R.L.
* These results are not audited and consolidated, and the reporting was made according to the International Financial Reporting Standards (IFRS).
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Corporate Communication and Public Relations Department
KMG International