Rompetrol Rafinare, KMG International member company, has registered a gross turnover* of ~5.6 billion USD in 2014, 15% more than in 2013 (4.8 billion USD). Influenced by the record breaking volumes of processed feedstock at Petromidia refinery – over 5 million tones, the operational profit (EBITDA) tripled from 29 million USD, the value reached in 2013, to 86 million USD in 2014. In the same time, the consolidated net result was 40% better in 2014, reaching the negative value of -58 million USD.
| Main consolidated financial indicators | Currency | QUARTER IV 2014 | QUARTER IV 2013 | % | 2014 | 2013 | % |
|---|---|---|---|---|---|---|---|
| Gross turnover | USD | 1,289,516,568 | 1,488,510,322 | -13% | 5,625,298,483 | 4,899,808,638 | 15% |
| Operational profit (EBITDA) | USD | 23,763,910 | 13,855,506 | 72% | 86,399,295 | 28,965,159 | 198% |
| Net result | USD | (16,672,162) | (9,489,557) | 76% | (58,445,227) | (95,608,192) | -39% |
In the last quarter of 2014, the company results have been influenced by the exchange rate evolution (RON/USD), crude depreciation compared to final products quotations, also by the stocks of raw materials situation in the last part of 2014. The production cycle for the refinery takes between 30-45 days, thus the raw material purchased and processed by the refinery is reflected in the final products prices after this period.
In the 4th quarter of 2014 its operational the company maintained its activity at the level of the first nine months of the year and its operational profit reached 23.8 million USD, a 72% increase compared to the 4th quarter of 2013. The net result decreased by 76% (-16,7 million RON) compared to the 4th quarter of 2013. At the same time, the decrease by 13% of the turnover from 1.48 billion USD in the 4th quarter of 2013 to 1.28 billion USD in the 4th quarter of 2014 had been influenced by the downward trend of the crude.
Rompetrol Rafinare reached a historical record in 2014 in terms of the volume of processed feedstock. Since its foundation in 1979 Petromidia refinery has processed 100 million tons of feedstock. Historical records reached by the company in 2014 include the volume of diesel produced - 2.46 million tons. Yields reached 48.8% for diesel and 85.7% for white products. The processing cost was lowered to 21.2 USD/ton, the lowest in the past 10 years.
KMG International will continue to implement the „Change for Good” program aimed at consolidating and developing the entire flow of operations on a group level. The program aims at increasing energy efficiency, reducing operational costs, increasing profitability, the expected economic impact on a group as a whole (KMG International) is estimated at 130 million USD until 2018.
By the end of 2014 Petromidia was ranked 8th among 250 refineries in Europe, the former Soviet Union and Africa and first in Romania in a Wood Mackenzie ranking regarding the level of flexibility and complexity. The Wood Mackenzie ranking took into consideration the Nelson index (reference frame used to assign values to oil refineries on the basis of their complexity), flexibility of production processes, investments in developing production capacities and quality of finished petroleum products.
Rompetrol Rafinare exports reached over 2 billion USD in 2014 (1.7 billion USD in 2013, 1.7 billion USD in 2012), placing the company on the first place in top of the country’s largest petroleum products exporters and on the second place at national level.
The company continued being an important contributor to the Romanian state budget, paying over 487 million USD in the 4th quarter and over 1.8 billion USD by the end of the year, 28% more than in 2013 (1.4 billion USD).
Rompetrol Rafinare, the core asset of KMG International, ensures through its two refineries (Petromidia Năvodari and Vega Ploieşti) over 40% of the refining capacity of Romania and is the only producer of polymers in the country. The overall value of investments in Petromidia platform reached 1.4 billion USD during 2007 (at the moment when the first 75% of shares acquired by KazMunayGas) – 2014.
Refinery and Petrochemicals
| QUARTER IV 2014 | QUARTER IV 2013 | % | 2014 | 2013 | % | ||
|---|---|---|---|---|---|---|---|
| Financial | |||||||
| Gross turnover | USD | 1,175,109,616 | 1,406,783,378 | -16% | 5,145,688,683 | 4,495,347,505 | 14% |
| EBITDA | USD | 3,686,855 | 51,058,079 | -93% | 11,205,404 | 32,481,052 | -66% |
| Net result | USD | (37,260,659) | 46,028,608 | N/A | (102,656,392) | (40,702,277) | N/A |
|
Operational
|
|||||||
| Processed feedstock | kt | 1,338 | 1,333 | 0% | 5.081 | 4,190 | 21% |
| Internal fuel sales | kt | 465 | 471 | -1% | 1,738 | 1,623 | 7% |
| Fuel sales - export | kt | 513 | 507 | 1% | 1990 | 1443 | 38% |
| Petrochemical sales | kt | 40 | 46 | -12% | 153 | 144 | 7% |
Refining and petrochemical gross turnover reached 5.1 billion USD in 2014, 14% more than the same period of 2013. The gross turnover was 16% less in the 4th quarter of 2014 than the same period of 2013 (1.4 billion USD compared to 1.17 billion USD).
The operational profit and net result have decreased as a result of the difficult market environment for the European refineries, determined by the drop in international quotations (25% for gasoline and 26% for diesel Q4 2014 compared to Q4 2013, respectively 8% for gasoline and 9% for diesel 2014/2013). Q4 2014 EBITDA reached 3.6 million USD and 11.2 million USD by the end of 2014. The net result amounted for a negative result of -37 million USD in Q4 2014 and -102 million USD for 2014.
Petromidia refinery processed at its full capacity last year and did not exhibit any planned or accidental shutdowns (365 days), the volume of processed raw material reaching 13.800 ton/day. Capacity utilization reached 93%, 7% more compared to 2013 and the energy efficiency index got better, decreasing to 99.8 (102.8 in 2013, 115 in 2012).
The external fuel sales increased by 38% in 2014 (1,990 thousand tons) compared to 2013 and the internal sales increased by 7% (1,738 thousand tons) compared to 2013.
The petrochemical division has reached maximum production capacity – 90 thousand tons, the production of polymers increasing 12% more than in 2013. The sale of petrochemicals amounted for 153 thousand tons, 7% more than previous year. The petrochemicals division elaborated new types of propylene for food and special packaging as well as a dedicated agricultural product.
Vega refinery processed over 300 thousand tons of feedstock in 2014, which is 28% more compared to the previous year (over 240 thousand tons). The refining capacity reached 105% in Q4 2014, 11% more than the same period of 2013. The refinery processed 87 thousand tons in the last quarter, 12% more that the same period of 2013 (77 thousand tons).
Vega refinery is a producer and provider of special products and the only Romanian producer of extraction naphtha and n-hexane in central and Eastern Europe.
Distribution segment
| dISTRIBUTION sEGMENT | cURRENCY | q iv 2014 | q iv 2013 | % | 2014 | 2013 | % |
|---|---|---|---|---|---|---|---|
| Financial | |||||||
| Gross turnover | USD | 766,363,562 | 830,829,376 | -8% | 3,217,275,057 | 2,943,112,711 | 9% |
| EBITDA | USD | 17,100,204 | 14,398,497 | 19% | 70,770,501 | 47,277,655 | 50% |
| Net result | USD | 4,505,724 | (1,544,463) | N/A | 22,228,057 | 1,055,355 | N/A |
| Operational | |||||||
| Retail sales | kt | 151 | 161 | -6% | 607 | 641 | -5% |
| Wholesales | kt | 282 | 274 | 3% | 1,043 | 925 | 13% |
Note: the distribution segment includes the result of subsidiaries - Rom Oil, Rompetrol Downstream, Rompetrol Quality Control, Rompetrol Logistics and Rompetrol Gas.
Due to the 13% increase in wholesales compared to the same period of 2013, the gross turnover for the distribution segment reached 3.2 billion USD in 2014, 9% more compared to 2013 (2.9 billion USD).
The financial results of the distribution segment were positively influenced by the favorable international market conditions and the cost optimization program. The drop in Platts quotations in USD and the appreciation of the US dollar against the national currency by 8.5% determined a drop in RON quotations by 19% for gasoline and 20% for diesel. However, the influence of higher excise in 2014 inverted the balance. The main internal factor that influenced the evolution of fuel prices in Q4 was the appreciation of RON against the USD.
Rompetrol Downstream modernized 90 filling stations by replacing their RVIs with the new Rompetrol logo and by performing exterior works in 2014. 10 stations are in an advanced state of modernization and in the following period – March – April 2015 17 filling stations are to be rebranded. The program was started in 2013 and aims at improving the services offered to our clients, the total investment being estimated at 18 million USD.
By the end of December 2014, Rompetrol Downstream distribution segment included 744 sale points, including its own network, partner stations, Rompetrol Express, 9 and 20 m3 internal bases, 230 LPG stations, 9.000 cylinder distribution stations and 3 GPL filling stations in Constanta, Arad and Bacau.
* The consolidated financial situation of Rompetrol Rafinare includes the results of Rompetrol Rafinare S.A. and Rompetrol Downstream S.R.L., Rompetrol Gas S.R.L., Rompetrol Quality Control S.R.L., Rom Oil S.A., Rompetrol Logistics S.R.L. and Rompetrol Petrochemicals S.R.L. subsidiaries.
** The presented results are not audited and consolidated and the reporting was performed according to the International Financial Reporting Standards (IFRS).
Department for External Communication and Public Relations
KMG International