In the 2009-2013 period, Rompetrol Rafinare (RRC.RO) posted cumulated losses of RON2.4 billion.
“Petromidia should not be taken out of the context. We are part of an integrated oil group, but strictly looking at the refinery, we are obviously importing crude oil at lower prices now, which supports our refining margins,” says Catalin Dumitru.
KMG International has not yet published 2014 figures for Petromidia, but in the first nine months the operating loss reported by the company halved from the same period of 2013, at RON91.7 million (EUR21 million).
However, losses from exchange rate variations brought a RON261 million minus in the company’s balance sheet in the first 9 months, against a RON44.7 million gain of 2013. Thus, the net result was a RON441.7 million loss in the first three quarters, against a RON239 million minus in the year-before period.
“However, we believe the operating result will be a good one this year,” said Dumitru.
Dumitru added results on the petrochemical segment also improved. “We also improved the petrochemical segment as closedowns in the region left us wider room to grow.”
In 2014, the Petromidia refinery processed record oil quantities, of above 5 million tons, with a positive impact over costs.
“Last year, our processing cost dropped to $21.2 per ton from an average level of $26 per ton in 2013”.
On the medium term, the objective set for the refinery envisages a further decline in processing costs.
Dumitru says that the company’s diesel oil output is largely delivered to Romania, the Republic of Moldova, Bulgaria and Georgia. “We hope for restabilization in Ukraine and to increase volumes delivered to Turkey”.
As a matter of fact, Petromidia is seeing more money coming from sales abroad than from Romania as in the sales of January-September 2014 local sales accounted for RON4.7 billion and exports for RON5.58 billion. Rompetrol Rafinare is Romania’s second biggest exporter after Automobile Dacia.
According to Dumitru’s estimates, Rompetrol managed to sell 3-4% more fuel in Romania last year on a relatively constant market. “We do not see a demand revival this year, either”.
While a larger refinery automatically takes a wider filling station network, Rompetrol’s expansion plans for Romania did not go as scheduled. The company said it would open around 14 stations in 2014, but it only opened one. Instead, it completed the revamping of 90 stations.
“Our investment plans are mainly tied to the memorandum agreed with the Romanian government. We agreed we will operate a large part of our strategic investments jointly with the Romanian state,” said Dumitru.
(English version by Catalina Apostoiu)