The evolution of turnover was due to a slight increase in sales levels reached in the first quarter of 2021, alongside the volatility of international quotations for petroleum products. The results have been supported by an increase in the volume of processed raw materials and of the petroleum products sold, as well as by the increase in refining margin (34 USD/to in Q1 2021 as against 21.9 USD/to in Q1 2020).
Its operating profit (EBITDA) reached a positive value of nearly USD30 million in the first quarter of 2021, from a negative value of nearly USD15.5 million in the first quarter of 2020.
“In Q1, the crude prices reached their highest level in 13 months on the back of raising fears of fresh Middle East tensions and after U.S. government data showed a drop of 1.1 mil barrels per day in crude output after a deep freeze disrupted production by mid of February. At the beginning of March, OPEC+ agreed not to increase supply in April as they await a more solid recovery in demand, even if the start of the COVID vaccination program bolstered the economic outlook”, according to company representatives.
Despite unfavorable market conditions, the total value of Rompetrol Rafinare’s exports reached USD245 million in January-March 2021, up 16% from the same period in 2020.
Over 40% (up 4% from the year-earlier period) of fuels obtained was exported both to companies within the Group (Rompetrol Moldova, Rompetrol Bulgaria, Rompetrol Georgia), and to third traditional partners in the region of Central and Eastern Europe (Turkey, Serbia and Greece).
The refining segment, namely, the Petromidia Navodari and Vega Ploiesti refineries, has the biggest contribution to Rompetrol Rafinare’s financial indicators.
The refining segment had gross revenue of USD839 million in the first quarter of 2021, compared with USD766 million in the same period of 2020, while loss shrank to USD12.6 million in January-March 2021, from USD72 million in the same period in 2020.
In the first quarter of 2021, the total throughput for Petromidia refinery was 1.26 million tons, higher by 2% compared with the same period in 2020 when the total throughput was 1.24 million tons. Also, in the first three months of 2021, the refining capacity utilization in Petromidia refinery was 84%, higher by 10.6% compared with the same period in 2020.
The increasing of the refinery capacity utilization is correlated with continues operation of the refinery vs. last year when it took place the planned turnaround activity and increasing of the refining margin and petroleum products demand after the crisis caused by COVID 19.
“In respect of Vega refinery (the oldest processing unit operating in Romania (since 1905) and the only domestic producer of bitumen and hexane), the total throughput was 68,962 tonnes in Q1 2021, lower by 4.4%, compared with the same period last year when the total throughput was 72,130 tonnes. In Q1 2021 the refining capacity utilization for Vega refinery was 83.6%, lower by 3.84% compared with the same period last year”, per the financial report.
Rompetrol Rafinare has a market value of USD569 million (RON2.3 billion), being one of the largest companies listed, but with a low free float. Rompetrol Rafinare is 54.63% held by KMG International Group and 44.7% owned by the Romanian State.
Rompetrol Rafinare shares have been trading up 20.5% since the beginning of 2021, amid deals worth RON780,000, per stock market data.