KMG International Group (formerly named The Rompetrol Group), solely owned by the national oil & gas company of Kazakhstan – KazMunayGas, shows in 2014 record financial and operational results, an unique performance in the past 15 years since its founding.
“KMG International’s long-term strategy envisages an organic growth in the countries of the Black Sea region, including the expansion of retail and gas business in Romania, enhancement of operational efficiency of the refinery after the record performances reached in 2014 as a result of the large investments of KazMunayGas in this sector – over 1.4 bln USD during the past 7 years. At the same time, we aim further organic growth on the priority markets as well as expansion of activity in the provision of industrial services (EPC) in Kazakhstan, North Africa and the Middle East”, stated Azamat Zhangulov, Senior Vicepresident KMG International.
In the context of the international evolution of crude oil and petroleum products prices, KMG International 2014 reached a net turnover of 11.4 billion dollars in 2014, higher with 2% compared to the result of 2013.
The increased of production and sales of petroleum products in conjunction with the optimization of operational and financial flows, and continuation of the "Change for Good" program contributed in 2014 to a double operational profit (EBITDA) up to a level of USD 140 million and an improvement of USD 61 million of net earnings (-58 million USD).
Launched in 2013, the program Change for Good aims at an improved efficiency by 2018 of the entire flow of operations, specific to the refinery - petrochemical trading - raw material supply, retail - marketing upstream - industrial services. It also seeks a reduction in operating costs and an increased profitability, the targeted economic effect being of approximately USD 130 million by 2018 (USD 28 million in 2014, USD 30 million in 2015).
In 2014, the total contributions of KMG International to the state budget, and local budgets amounted to USD 1.93 billion, out of which 1.8 billion is Rompetrol Rafinare intake (1.4 billion USD - 2013).
Meanwhile, the exports of Rompetrol Rafinare amounted to over $ 2 billion in 2014 (1.7 billion USD – 2013; USD 1.7 billion - 2012), the company being the largest domestic exporter of petroleum products and the second exporter of Romania on the overall top.
The quantity of raw materials processed by the two refineries of the Group - Petromidia Năvodari and Vega Ploiesti, as well as the petrochemical division - the only entity of its kind in Romania in operation, amounted in 2014 to over 5.54 million tons, higher by 21 % compared to the level reached in 2013. Last year Petromidia Refinery reached a historical record of processed raw materials - more than 5 million tons, while the total amount processed from 1979 (the year of its entry into service) until now exceeds 100 million tons.
Amid an increase of 22% of Petromidia refinery fuel production (a record of oil production of 2.43 million tons compared to 1.91 million tons in 2013), the sales of petroleum products through Rompetrol gas stations in Romania, Bulgaria, Moldova and Georgia increased by 15 % compared to 2013, reaching a level of 2.23 million tons .
At the same time, the Group's trading activities (the sales of finished products, the acquisition of raw materials for the production units) in the Black Sea registered an upward trend in 2014, with 22% above the level of 2013 (11.5 million tons). These volumes were reflected at the level of the supply-chain division, which traded 550 vessels on the internal market, 670 trains left the refinery to 7 depots in Romania and other hundreds of tanks for Rompetrol gas stations and for domestic partners.
Among the performance achieved by the member companies of KMG International Group in 2014 – the decrease of the processing cost to $ 21.2 / ton - the lowest level in the past 10 years, the increase of yields for diesel to 48.8% and the yields for white products to 85.7%, reaching the maximum production capacity of polypropylene – 90,000 tons in 2014, a record bitumen production (61,400 tons) and n-hexane (64,000 tons), a reduction of 5% in logistics costs and 10% of losses in petroleum products. To these is added the modernization and rebranding program of 90 Rompetrol gas stations in Romania and the implementation of the new concept in Moldova and Georgia.
The budget allocated in 2014 by KMG International for investments amounted to approximately $ 55 million and mainly focused the modernization program of 90 Rompetrol gas stations in Romania.
For this year, the Group has proposed an investment plan of over USD 200 million, a large part of the amount being allocated for the scheduled general overhaul of Rompetrol Rafinare. Petromidia refinery operated last year at full capacity and did not registered any scheduled or accidental interruption of activity (365 days), the volume of processed raw material being 13,800 tons / day.
Also, another investment direction is represented by the construction and development of the fuel distribution network in Romania, as well as the continuation of rebranding for Rompetrol gas stations.
KMG International is convinced that by implementing the provisions of the memorandum signed with the Romanian Government in 2013 on a partial redemption of their shares, but also on the creation of an investment fund in the energy sector with a total value of up to 1 billion USD, real benefits will be generated for both the company and for the Romanian economy. The realization of these investments could contribute to the creation of over 2,000 jobs, while having a major impact in horizontal development of the national economy.
About KMG International
With over 7.000 employees in 12 countries, KMG International N.V. (the former The Rompetrol Group N.V.) is one of the well-established oil companies operating in Romania and an important player in the Black Sea and Mediterranean Sea basins. The company is primarily active in refining, petrochemical, retail, trading, upstream and industrial services.
In Romania, KMG International owns one of the biggest and most technologically advanced refineries in the Black Sea region – Petromidia Navodari – having a refining capacity of 5 million tons of raw material per year and Vega Ploiesti.Petromidia is the first EU environmentally approved refinery according to European environmental rules. Its strategic position near Constanta allows fast shipping of crude and oil products towards KMG International subsidiaries in Moldova, Georgia, Bulgaria, Turkey, as well as to other traditional partners in the Black Sea region.
Public Relations Department