KMG International, part of National Oil and Gas Company from Kazakhstan “KazMunayGas” realized in 2015 record high operational and financial results. The Group’s operational result (EBITDA) has been achieved at 162 million $, whereas the operational net result 4.6 million $*
The historically high financial accounting result has been reached despite the negative effect of inventory holding losses due to the international oil price drop effect. Management Accounting operational EBITDA, i.e. financial operational EBITDA adjusted with the inventory holding impact has been 278 million $ in 2015, while Management Accounting Net Result reached 120 million $.
“The 2015 represented an important moment in the history of KMG International Group. We have reached all the strategic targets and directions set in 2013, due to the investments made in the modernization of the fixed assets and business development in the Black Sea region, as well as through implementation of new business initiatives aimed at increasing operational efficiency and reducing production costs”, declared Zhanat Tussupbekov, CEO of KMG International.
In 2012, the consolidated level of the operational result, EBITDA, has been 79 million $, whereas the financial result of the Group has been at the time negative, amounting to -156 million $ losses. Thus the consolidated level of 2015 EBITDA has doubled compared to the level registered in 2012.
Oil Processing and Industrial Services
The main asset of KMG International Group, Petromidia Refinery located in Navodari, reached in 2015 a historically high level of the daily feedstock processing run-rate (15.200 tons/day). Thus, our refinery at the Black Sea processed 4.95 million tons of feedstock during 2015.
This 2015 high level of processing performance has been achieved despite the cyclical 5 years turnaround activity, for which the refinery has been shut down for 40 days.
During the turnaround activity, a large amount of works has been performed to furthermore increase the safety operation of installations, as well as to optimize the operational efficiency. Through the Group’s dedicated subsidiary – Rominserv - approximately 1,000 inspections and 400 HSE controls have been carried out; 26 reactors have been tested, 50 columns more than 250 heat exchangers and 111 electric motors have been repaired
At the same time, through the efficiency improvement and production units’ optimization program, the processing costs have been optimized by 27% and the capacity utilization of Petromidia Refinery increased up to 98%.
The diesel yield of Petromidia Refinery reached a record high level of 50%, whereas the average level among Central and Eastern Europe refineries has been of only 40%.
Retail and Trading
The Retail Business Unit of the Group realized a record high level of fuels sales (gasoline, diesel, LPG) in 2015 in Romania, Moldova, Bulgaria and Georgia of up to 2.64 million tons.
This growth has been mainly supported the Rebranding Program of Rompetrol filling stations implemented since 2013, through which a new filling stations concept has been developed – a link in between our clients’ needs and expectations and the best technical solutions.
At the end of 2015, 121 COCO and 39 DODO filling stations in Romania have been placed under the umbrella of the new concept. This program is being extended as well into Georgia and Moldova markets.
The Trading Business Unit increased its operational volumes by 7,5%, in comparison with the previous year.
“Our Company looks towards the future with confidence. Our aim is to strengthen our position on the European and Black Sea region markets – from oil supply and processing, to sales of oil products through our own most profitable sales channels. We managed to create a professional and dedicated team of managers ready to respond to any challenges of the time and trends on global market”, stated Zhanat Tussupbekov, CEO of KMG International.
About KMG International
Having more than 7.000 employees in 12 countries, KMG International NV is fully owned by National Oil and Gas Company of Kazakhstan – KazMunayGas. Following the acquisition period 2007-2009, KMG International has become a platform in between the natural resources of Central Asia and the relevant European petroleum products markets.
In Romania, KMG International owns one of the largest and most modern refineries in the Black Sea region - Petromidia Navodari, with a refining feedstock capacity of 5 million tons per year, as well as Vega refinery from Ploiesti and the only one polymers refining unit.
The Retail Network of the Group includes over 1.100 filling stations in Romania, Moldova, Georgia, Bulgaria, France and Spain.
The Group’s subsidiary - KMG Trading AG is the sole operator for both the crude export of JSC NC “KazMunayGas” and for the trading operations on international markets.
* Operational net result, excluding one-off items impact, un-related to the operational performance of the year 2015, such as provisions and revenue from Deferred Tax Asset
Public Relations Department