Rompetrol Refining reports USD 193 million losses for last year

Rompetrol Rafinare (RRC), company part of The Rompetrol Group, reports for last year a turnover of about USD 3.5 billion, representing a 12 percent hike than the previous year. Yet, the net result of the company was negative, of USD 193 million. Also, according to company information, the operational results (EBITDA) has increased to USD 16 million, compared with USD 3.25 million reported in 2009.

Rompetrol officials say that the financial results were influenced primarily by external factors, like the growth with approximately 28 percent of the oil quotations, as well as the quotations of the petroleum products, (25 percent for gasoline and 28 percent for diesel), decrease of products demand, the closing or reducing the refining capacities or improvement with 42 percent of the refining margin.

Besides these, the difficult conditions in obtaining the working capital and the related financing, the differences in the exchange rate, the impact of macro economical measures like VAT increase to 24 percent, increase of the inflation rates (from 4,75 percent in 2009 to 7.90 percent in 2010) or the amount of different taxes can be added.

The total level of investments during the general overhaul (20th of September – 1^st of November 2010) amounted to over USD 43 million. Among the major projects completed are included the revamp of catalytic cracking unit, the integration of new systems for monitoring the performance of the units, and also establishing the premises for future integration of the operational flow installations in refinery (Mild Hydrocracking Unit, Hydrogen plant and a new sulfur recovery plant).

In Q4, Rompetrol Rafinare also finished the construction of a LPG terminal in the Midia port, with a total investment value of approximately USD 3.8 million. With a capacity of approximative 3000 to/transport, the new asset will ensure a reduction with 20 percent of the LPG import-export related costs, as well as the delivery time and the implied number of operations.

The total fuel sales related to the refining segment in 2010 have risen to 2.34 million tons, registering a drop with 17 percent compared to the same period of 2009, amid a total quantity or processed raw material of 3.4 million tons, down with 15 percent and determined by the programmed overhaul related works.

Regarding the distribution segment (Rompetrol Downstream, Rom Oil, Gas and Rompetrol Logistics), it recorded a 12 percent increase in turnover in 2010, reaching a level of approximately USD 2.2 billion, and a decrease by over 30 percent of operating income from USD 47 million in 2009 to about USD 32 million in 2010. They were strongly influenced by the reduction of trade margins by 12 percent in retail and 23 percent wholesale, exchange rate differences, but also a decrease in product demand. Thus, the volumes traded in 2010 saw a decrease of 3 percent on the retail segment, more exposed to economic crisis, rather than wholesale market which registered an increase of 1 percent of volumes traded, compared with 2009. At the end of 2010, Rompetrol Downstream was operating 788 filling stations.