July 3 (SeeNews) - KMG International (KMGI), majority shareholder of Romania's Rompetrol Rafinare [BSE:RRC], said its net profit rose 70% to $8.5 million (7.3 million) in the first quarter of the year, mainly due to successful business in Romania.
The first quarter brought an improvement for KMG International, in terms of its operational and financial results, in the context of a development in their trading and retail activity related to petroleum products in Romania and the Black Sea region, KMGI said in a press release on Monday evening.
In the future, KMG International said it will continue to implement its programmes for optimizing and rendering the processing, logistic and distribution expenses more efficient.
The company's plans include extension of the distribution network in Romania and in other countries in which it is is present.
“In 2018, we intend to focus on extending the Group trading and retail activities but also to continue the implementing of the internal programmes for development in stages and subsequent diversification of our business," said KMGI corporate development and strategy vice-president Alexey Golovin said.
KMGI recorded EBITDA of $47 million in the first quarter, up by 12% on the year, as gross turnover increased by 40% to $2.76 billion.
The good figures were supported by a 27% increase in the raw material volumes processed within the production units of the group, both based in Romania – the Petromidia Navodari and Vega Ploiesti refineries, but also within the petrochemicals division.
Petromidia Navodari has processed a record quantity of 1.52 million tons of raw materials in the first quarter, up 27% on the year, and has reached a 98.5% degree of capacity use, an increase of 25% year-on-year.
In Romania, the total sales of petroleum products increased in the first quarter by approximately 3% to 576,000 tonnes.
The Petromidia refinery direct sales to non-group customers rose by 40% on the year in the first three months of 2018. At the same time, the Vega Ploiesti refinery and the petrochemicals division improved the deliveries of products on the internal market by approximately 22%, respectively 11%.
The retail division of the group in Romania, Rompetrol Downstream, obtained a total fuel sale volume of 487,000 tonnes in the first quarter of 2018, a slight decrease as compared to the volume in the prior-year period, influenced by severe weather conditions in March.
Also, Rompetrol Downstream registered a 34% increase of dry sales at filling stations. Out of this quantity, approximately 30% was sold through the Rompetrol stations, this index indicating a 3% growth against last year’s similar period.
Over the first quarter, the company continued the extension of its activity at national level as well as the programme of station rebranding (LPG, Rompetrol Partner, Rompetrol Express) and interior rebranding.
At the end of March, the distribution segment of Rompetrol Downstream comprised 818 fuel distribution units, 66 units more as compared to March 2017.
In April, KMGI said it has amended and extended its $360 million multi-currency revolving credit facility to 2021. The credit facility will be used by Rompetrol Rafinare, Rompetrol Downstream, KazMunayGas Trading and KMG Rompetrol for their general financing needs.
Rompetrol Rafinare shares last traded 4.58% lower at 0.0500 lei on Monday on the Bucharest Stock Exchange.
($= 0.8591 euro)
Rompetrol Rafinare SA is among the biggest companies in SEE. You can download our SEE Top 100 ranking
here or subscribe to our free Top 100 newsletter
here