August 14 (SeeNews) - Romanian oil refiner Rompetrol Rafinare [BSE:RRC] reported a consolidated net loss of $7.03 million (5.98 million euro) in the first half of 2017, compared to a $22.03 million net profit in the year-ago period, negatively impacted by a 17% drop in refining margins.
Rompetrol Rafinare's consolidated operating result (EBITDA) fell by 36% on the year to $57.5 million in the six months through June, also affected by the drop in refining margins, the company said in a press release on Friday.
Its gross turnover edged up 1% on the year to $1.71 billion in the first six months of 2017.
The consolidated financial results of the group include the results of Rompetrol Rafinare and those of subsidiaries Rompetrol Quality Control, Rom Oil, Rompetrol Downstream, Rompetrol Logistics, Rompetrol Gas and Rompetrol Petrochemicals.
According to the individual financial reports expressed in lei, Rompetrol Rafinare registered 171 million lei ($44 million/37 million euro) net profit in the first half, up by 20% over the same period last year. A positive influence over the net result registered in the first half of this year was the difference in foreign exchange rate. The turnover according to the company’s individual financial report rose by 14% on the year in the first half of 2017, to 4.7 billion lei.
Rompetrol Rafinare carried out investments worth $27.5 million in the first half of 2017, both in development projects for certain production units at the Petromidia refinery and for maintenance works at industrial installations for refining activities, storage and logistics.
Rompetrol Rafinare exported over 1.1 million tonnes of products in the first half of 2017, a similar level compared to the same period of 2016. The company is the largest exporter of oil products in Romania and the third largest exporter in the country.
Petromidia, one of the company's two oil refineries in Romania, processed 2.4 million tonnes of raw material in the first half of 2017, down by 13% compared to the same period of last year, impacted by a scheduled stoppage in May. The refining capacity of Petromidia was 70% in 2016, lower than 83.96% at end-2016.
Rompetrol Rafinare's other refinery in Romania, Vega, processed over 152,0170 tonnes of raw material in January-June, down 11% on the year, also due to May overhaul. The refining capacity of Vega platform was 92% in 2016, down from 107% at end-2016.
Rompetrol Rafinare is the core asset of Dutch-based KMG International (KMGI), formerly The Rompetrol Group, which is fully owned by Kazakhstan's state-owned energy company KazMunaiGaz Group.
Through its two refineries, Petromidia and Vega, Rompetrol Rafinare accounts for over 40% of Romania's refining capacity and is the only producer of polymers in the country.
Rompetrol Rafinare ended 2016 with a consolidated net profit of $49.8 million, down 23% year-on-year, negatively impacted by international prices for oil products.
In July, KMGI said it has received approval from the Romanian authorities to sell its assets in the country to CEFC China Energy Company Limited. The transaction is expected to be finalised in the autumn.
The negotiations between KazMunayGas and CEFC for the sale of 51% of KMGI's shares to the Chinese company reached their final stage in December 2016.
Rompetrol was privatised in 1993 by Management and Employee Buy Out (MEBO) and in 1998 it was bought by a local investor group led by Dinu Patriciu. In August 2007, KazMunayGas acquired 75% of the Rompetrol shares from Patriciu for around 2.5 billion euro.
Rompetrol Rafinare shares were traded 3.16% lower at 0.552 lei at 0929 CET on the BVB.
(1 euro=4.5780 lei)
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