STOCKWATCH - RCI Keeps Romania's Rompetrol Rafinare Under Review

“RRC was heavily hurt by current high oil prices/weak refining margins environment. Even the healthy retail margins did not help, as it was the case of Petrom. We expect refiners to further face difficult time and RRC will not be an exception. For the time being, we maintain both our recommendation and price target under review,” RCI said in a statement.

On Thursday, Rompetrol Rafinare, the refining unit of Romania's second-largest oil group Rompetrol, reported a net loss of 207.8 million lei ($69.3 million/54.8 million euro) through September, compared to a loss of 62.8 million lei a year earlier.

The output of its Petromidia refinery decreased by 5.0% year-on-year and 12.3% quarter-on-quarter in the July-September period. “Lower throughput is partially explained by 10-day shutdown of the refinery,” RCI said.

Rompetrol Rafinare is the most important asset of the Rompetrol Group (www.rompetrol.com). Kazakhstan's KazMunayGas (KMG) wrapped up a deal to buy a 75% stake in Rompetrol Group from Swiss-registered Rompetrol Holding for an undisclosed sum in November 2007.

Shares in Rompetrol Rafinare last traded 1.83% lower at 0.0215 lei by 1317 GMT on the Bucharest Stock Exchange.

(1 euro = 3.7929 Romanian lei)