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.
Rompetrol Rafinare managed, in the first three months of the year, a significant improvement of the financial indicators.
The company reached in Q1 2021 a gross turnover of over one billion dollars, 8% above the level of Q1 2020, due to a slight increase in sales, results which were also supported by the increase in gross refining margin, from 29.1 USD / ton in the first three months of 2020, to 34 USD / ton in the first three months of this year.
At the same time, the net loss contracted, from over 87 million USD in the first three months of the previous year, to less than 15 million USD in the first three months of 2021.
Rompetrol Rafinare continued to be a major contributor to Romania's state budget, paying over 378 million USD in the first quarter of 2021.
Rompetrol Rafinare managed in 2020 to protect and maintain its production units in operation - Petromidia Navodari and Vega Ploieşti refineries, the petrochemical division, in the context of the negative impact generated by the COVID-19 pandemic.
With considerable efforts, the company continued to be a pillar of stability for employees, customers, business partners, local and central authorities, both by supporting the national and regional economy (investments, contributions) and by the products obtained (automotive and aviation fuels, bitumen, polymers, hexane, etc.).
The company recorded a gross turnover of about USD 3.5 billion last year, 33% lower compared to the similar indicator in 2019. At the same time, the consolidated operational result (EBITDA) decreased, reaching almost one million dollars, and the net result recorded a negative value of 220 million USD.
Restrictive measures taken domestically and regionally/internationally to protect and limit the spread of COVID-19 were also reflected in the sharp decline in demand for petroleum products (automotive fuels, aviation fuel), high volatility in international fuel quotations, but also in negative refining margins. For example, the net refining margin recorded by Petromidia Năvodari refinery dropped last year to a negative value of -11.2 USD/ton, from a positive value of 13.7 USD/ton in 2019.
Read more about the financial and operational results in 2020.
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.