„With a 9% increase in feedstock processed last year and 13% increase in products sold in Romania, its main market, the Group managed to obtain earnings before interest, taxes, depreciation, and amortization (EBITDA) of around USD239 million and a net profit of USD88 million,” the statements also reads.
According to KMG, the Group’s record results were largely due to operational business improvements and specific production improvement programs (increase in the processing capacity and increase in the percentage of white products in the total finished products), operating costs (reduction of the thermal energy and electricity consumption), as well as the “Change for Good” program launched in 2014.
In 2016, the group’s production units in Romania saw an increase of nearly 9% 9% in overall quantities of processed raw material, from 5.45 million tons in 2015 to 5.95 million tons in 2016.
Thus, Petromidia Navodari Refinery, the largest Romanian unit in the field and one of the most modern and complex units in the region, processed more than 5.4 million tons of feedstock last year (15,750 tons/day), which was also reflected in the fuel volumes – 4.2 million tons (up 8%). Out of this quantity, approximately 1.9 million tons of fuel were sold domestically (13% rise), while the remaining quantities were sold on foreign markets (4% rise), to the Group’s subsidiaries in Moldova, Bulgaria and Georgia, as well as to traditional partners in the Black Sea Region.
Also, Vega Ploiesti Refinery – the oldest unit in Romania still in operation, processed 8% more feedstock (354,000 tons total), accounting for 107% utilization rate. It also scored historic levels for bitumen production (91,000 tons), hexane, ecological solvents, and also in terms of processing cost and processing loss.
The petrochemical division, sole producer of polymers in Romania, processed 189,000 tons of feedstock last year (propylene, ethylene) – the highest level recorded in the last 5 years and more than 8% higher than volumes reported in 2015. 57% of the products obtained were exported and the company managed to develop 3 new types of polymers.
The group’s retail activity boasted record fuel sales last year (petrol, diesel, liquefied petroleum gas) in Romania, Moldova, Bulgaria and Georgia, up to 2.9 million tons, 14% higher compared to 2015.
This evolution was supported by the adoption of a new commercial policy as well as the continuation of the extension programs for the distribution networks and the rebranding of Rompetrol stations in line with the concept launched in 2013 – a combination between our customers’ needs and expectations and the best technical solutions available.
In Romania, the total sales of oil products reached more than 2.6 million tons (up 13%), of which 1.76 million tons of fuel (up 8%) were delivered locally through Rompetrol Downstream – the Group’s retail division. The company is the biggest wholesale supplier of oil products in Romania, posting an 11% increase in business (up to 1.12 million tons of fuel).
With around 6,000 employees in 11 countries, KMG International NV is owned by the national oil and gas company ofKazakhstan – KazMunayGas. After its takeover in 2007-2009, it became an energy platform that connects the natural resources of Central Asia to European markets in the field.
In Romania, KMG International holds one of the largest and most modern refineries in the Black Sea Region – Petromidia Năvodari, with a refining capacity of 5 million tons of feedstock per year, and also Vega Ploiesti Refinery,the country’s sole producer of polymers. The Group’s distribution network comprises more than 1,000 fuel selling points in Romania, Moldova, Georgia, Bulgaria and also in France and Spain trough Dyneff – a partnership with CEFC China Energy Limited 51% / 49%.