We aim at meeting the growing energy needs of the society in the most sustainable and efficient way, employing a competitive business model.
We strive for leadership in all areas of the Group’s activity, to steady grow our business in the region and beyond, and constantly improve of all financial and operational indicators.
We envision KMG International to be among the top performing energy companies in the countries of operations actively contributing to development of the global energy industry, providing its clients with the highest quality products and services, and consistently adhering to practices of responsible business conduct.
Leading downstream player in Eastern Europe and Black Sea region
The long-term strategy of KMG International aims to achieve a leading position in the countries of operations in the Black sea region, as well as expansion to new markets across continental Europe, Middle East and Africa.
In line with the above-mentioned goals, the company management is committed to a continuous improvement of all business processes, in order to achieve better financial and operational results, and provide its customers with a wide range of products and services of superior quality.
KMG International’s strategy encompasses all five key business areas: supply chain, crude refining, retail, industrial services, and corporate development.
The five key strategic areas:
1. Trading and Supply Chain
Over the last years, the company has developed an efficient logistic infrastructure and built a sustainable supply chain of crude from deposits in Kazakhstan based on long-term contracts, all this allowing to maximize benefits related to the location of the Petromidia refinery, one of the key assets of the Group, at the Black Sea coast.
In this area, management efforts focus on further developing available strategic advantages through supply chain costs optimization and engagement in full-fledged trading business by increasing the volumes of feedstock and oil products supply to third parties.
2. Crude Refining
Large-scale modernization of the Petromidia platform, with an annual capacity of 5 million tons, allowed the facility to become one of the most advanced refineries in South-East Europe and the largest in Romania.
Strategic approach of the company in the refining sector consists in further increasing operational and energy efficiency, in order to maintain consistent high quality of fuels and petrochemical products.
3. Retail and Marketing
Increasing the volume of retail sales and developing the network of own and partner-controlled filling stations hold a central place in the Group development strategy as a key driver of overall business profitability.
In 2014, a large-scale rebranding program targeted the existing filling stations. The program aimed at consistent brand promotion, consolidation of the market position, and building long-term relationships with consumers.
The focus of the new concept of retail sales development shifted from product features promotion to client needs. The strategic approach in place, going under the name of “business around fuel”, consists of developing a diversified range of related high-quality services, which are made available to the consumer together with fuel products.
4. Industrial Services
The Group has accumulated substantial expertise and experience in providing specialized industrial services in the sectors of refining and logistics.
An important strategic direction for management consists in capitalizing on this experience and promoting the industrial services, ranging from consultancy support to complete engineering turnkey projects.
5. Corporate Development
The implementation of a transformation program aims to increase the efficiency of the governance model through adaptation of best practices and introduction of the new corporate culture.
The development path of this area consists of streamlining and simplifying decision-making procedures with a wide delegation of authority to lower levels of management, introducing an efficient risk management system, and increasing the level of engagement of personnel seen as the most important long-term asset of the Group of companies.