Refining and petrochemicals represent one of the main business units of KMG International, keeping the local industry at high standards. It owns two out of four refineries in Romania, the excellence centers Petromidia refinery (Navodari city) and Vega refinery (Ploiesti city) as well as the Petrochemicals division, the sole producer of polymers in Romania.
Petromidia processes mostly Urals type of crude oil, producing exclusively Euro 5 fuels and other very valuable niche products distributed by the Trading and Supply Chain to the Group subsidiaries and other traditional partners.
More than 1.4 billion USD were invested to develop the refining and petrochemicals units starting 2007, along with logistics infrastructure for crude oil supply and delivery of finished products in Romania and the Black Sea region.
These initiatives of assets modernization were undertaken and carried out in a local and international context marked by the financial crisis, the oil and gas sector being among the most affected.
Contribution to energy security
Petromidia and Vega refineries make up 44,6% of the local processing capacity and could fulfill 70% of the current internal demand for diesel and gasoline, since Petromidia has the highest yield of white products in the region (gasoline, diesel and jet fuel).
The diversity of supply sources represents a key element of energy security and the Group’s offshore marine terminal has a significant contribution to ensuring alternative supply routes with raw materials.
On top of direct access to crude oil supplies from Kazakhstan, Petromidia has the second largest reserve of oil and crude products in the regulated emergency stockpile.
Rompetrol Rafinare is the third largest contributor to the Romanian budget, with an annual contribution of nearly USD 1.2 billion to the local budget.
By continually investing in its two refineries, KMG International maintains its position as the biggest exporter of oil products and one of the biggest exporters from Romania.
We have managed to significantly improve our performance over the past years through constant and consistent investments aimed at increasing our refining capacity and operational results.
As a result of the complex modernization program of the Petromidia refinery and the increase of the processing capacity to more than 5 million tons/year ended in 2012, the Group registered a series of operational and financial records.
Results 1st semester 2020
Rompetrol Rafinare recorded declining financial results in the first half of 2020, due to unprecedented volatility in the oil market, but also the impact generated by the influences of COVID-19 on the demand for petroleum products.
In the context of the restrictive measures imposed with the onset of the pandemic that led to very low market demand, as well as the prolonged misunderstandings and negotiations by OPEC + members that led to a very low historical crude oil price, massive and cheap stocks of products were generated in the oil market. After the relaxation of measures and, in conjunction with the recovery of crude oil prices due to OPEC + agreements to reduce production, cheap oil products stored at full capacity, during the 2 months of isolation of the population in Europe, have created enormous pressure on refinery margins.
Read more about the financial and operational results in the 1st semester 2020.
Results Q1 2020
The first quarter of 2020 was marked by sharp declines in the oil and gas market, driven by restrictive measures imposed with the onset of the COVID-19 pandemic. Rompetrol Rafinare recorded financial results affected by the significant decrease in gross refining margins, halved compared to the previous year.
The consolidated financial result was also affected by the unfavorable weather conditions recorded in the first two months of 2020, which led to bottlenecks in the supply of raw materials. Then, in March, the Petromidia refinery stopped operations for scheduled turnaround works.
At the same time, the depreciation of the national currency against the euro and the dollar has put additional pressure on refining margins.
Against the background of the current situation, the company has taken measures to prevent and protect employees, collaborators and customers, by adapting the overall strategy to the global context.
Rompetrol Rafinare managed in 2019 to maintain a positive trend in terms of operational results, with record values for processed raw materials, fuel production and sales on the domestic market.