Rompetrol Refining, positive quarterly performances in a difficult environment

Rompetrol Refining, positive quarterly  performances in a difficult environment

Refining Segment
• Decrease of energy consumptions;
• Development of projects related to energy efficiency;
• Start of additives production for Alto (diesel and gas);
• Export supply increase of finished products through Midia Port;
• Production of new sorts of gas using bioelements.
Petrochemical segment
• Positive financial results (EBITDA) in the second quarter of 2008; 
• Reduce the polymers stocks, considering the high degree of utilization of the installations;
• Launch of two new sorts of HDPE.

Retail Segment
• Developing the fuel distribution network to 685 units (own stations, Rompetrol Partners, Express and Internal Base gas stations);
• Investments of over 10 million USD to build 5 new Rompetrol stations and 5 Expres mobile stations.

Rompetrol Refining, company member of The Rompetrol Group, has continued, in the second quarter of 2009, to develop its activities and consolidate its technological processes. The financial results registered by the company during the last six months were strongly influenced by the international crisis, the fluctuations of the gas and oil quotations, as well as a series of internal macroeconomic agents, like the depreciation of the national currency.

The company has registered, from April to June, a consolidated turnover of 773,4 million USD*, which is 18% larger than the one deliver in the first quarter of 2009, but 44% less, compared to the same period of 2008. At the same time, the operational results (EBITDA) has risen to 17,6 million USD, compared to a negative result of -14,3 million USD in the first quarter of the current year. Nevertheless, the EBITDA has decreased by 75%, measured up to the second quarter of 2008.

The main external agents which have influenced in the 2nd quarter the financial results registered by Rompetrol Refining, independent of its activities, are the decline of the international quotations by 51% for oil and approximately 50% for gas, compared with the same period of 2008, the decrease by 72% of the refining margin, the increase of the differences of currency exchange, due to the depreciation of the Romanian LEU (32% for RON/USD and 15% for RON/EURO), as well as the strong influences of the financial crisis.

The refining sector, the Petromidia refinery and its branch, Vega refinery Ploiesti, has registered in the 2nd quarter a turnover of 647 million USD and an operational result (EBITDA) of 5 million USD, based on a quantity of approximately 1,08 million tons of processed raw material. For the current year, Petromidia has in plan to process approximately 4,4 million tons of raw material, out of which circa 4,25 million tons of oil.

The total sales of gas of the refining sector, for the first half of 2009, have risen to 1,49 million tons, out of which 52% on external markets and the rest on the internal ones. In the same period, the company has increased its sales of fuels by 12% internally, and has diminished by 3% the quantities delivered on the internal market.

In the first semester of the current year, the investment efforts made by Rompetrol Refining to increase the operational efficiency of the Vega and Petromidia refineries and to continue the major projects in “2010 Package” was approximately of 34 million USD. Its main purpose was the implementation of new technologies, which will allow the company to grow its refining capabilities of oil with high sulfur concentrations and to obtain products according to the European quality standards.

The distribution sector, consisting of Rompetrol Downstream, Rom Oil, Rompetrol Logistics and Rompetrol Gas, has registered, from April to June, o decrease in its turnover by 30%, to a level of approximately 475 million USD, whereas the operational result (EBITDA), has decreased just by 1%, to 10,5 million USD. At the end of June, the national Rompetrol fuel distribution network has 685 gas stations (125 Rompetrol gas stations, 169 Partener stations, 164 Rompetrol Expres stations and 227 Rompetrol Internal Bases). In addition to this, Rompetrol also has 250 distribution points for LPG for cars and almost 6.000 sales points for gas cylinders.

From April to June, total gas sales on the distribution sector (retail, en-gross and Partner network) was 360.000 tons, an increase of 8,5 compared to the first quarter and 9,4 against the second quarter in 2008. These figures were sustained by the launch of the new premium line of fuels in the 1st quarter, Alto, and the first program that guarantees the quality of our fuels – QproTek-t.

In the first quarter of this year, Rompetrol Downstream has opened five new gas station and nine mobile gas stations, Rompetrol Expres, with an investment value of over 10 million USD. To be closer to its clients, and to satisfy their needs, the company intends to extend its network in 2009 with another 75 gas stations, out of which 5 Rompetrol stations, 40 Rompetrol Expres and 25 Rompetrol Internal Bases, dedicated to large clients.

Due to the contraction of the specific markets, Rompetrol Petrochemicals has registered a decrease of the turnover in the 2nd quarter by 42%, to 62,4 million USD, compared to the same period of 2008 (107,6 million USD). At the same time, the operational results (EBITDA) has increased to 3,5 million USD, compared to a negative result of -19,1 million USD in the 1st quarter of the current year, and -7,4 million USD in the 2nd quarter of 2008. The results were supported by the growth of 3% in the quantities of the sold polymers, the diversification of the product lines and the launch of two new sorts of high and low density polyethylene, as well as the measures adopted at the end of the last year, in order to balance the production figures according to the request of polymers on the market, thus avoiding overstocking.

Rompetrol Rafinare continued to be an important contributor to the Romanian state budget, paying USD 400,6 million USD in the first six months of 2009.

* The consolidated financial statements of Rompetrol Rafinare include the results of Rompetrol Rafinare S.A. and those of subsidiaries Rompetrol Petrochemicals S.R.L., Rom Oil S.A., Rompetrol Downstream S.R.L. and Rompetrol Logistics S.R.L. (together with subsidiary Rompetrol Gas S.R.L.)

** The reported results are consolidated and non-audited, and the reporting has been performed in virtue of International Financial Reporting Standards (IFRS).

Department of Communication and Corporate Affairs
The Rompetrol Group