Rompetrol Rafinare continues to post losses, but lower ones

Rompetrol Rafinare registered USD 3 billion in gross revenues for last year, 32 percent lower than its 2008 result. The firm’s financial statements include the results of the parent company Rompetrol Rafinare and its subsidiaries Rompetrol Petrochemicals, Rom Oil, Rompetrol Downstream, Rompetrol Logistics and Rompetrol Gas.

The company continued to post losses, but reduced them by 31 percent compared to 2008 figures, to USD 180.6 million. According to company information, the decrease in gross revenues is mainly the result of falling international petrol prices. The financial results were strongly influenced by the global financial crisis, crude oil and fuel quotations and also domestic macroeconomic factors such as the depreciation of the RON. Regarding the parent company, Rompetrol Rafinare its gross revenues reached USD 2.7 billion in 2009, 36 percent down on the previous year. The company registered losses, but they fell by 7.5 percent compared with the 2008 level, to USD 143.6 million.

Data reported by the company to the Bucharest Stock Exchange reveal that the operational results for 2009 were influenced by the squeezed margins from lower sales of petroleum products, both diesel crack (200 USD/t in 2008 compared with 66 USD/t in 2009) and Ural/Brent differential (3 USD/bbl in 2008 compared with 0.73 USD/bbl in 2009).

The weakening RON brought about significant foreign exchange losses. Last year, the refining capacity utilization rate was 80.66 percent in the context of reduced margins obtained from petroleum product sales. Despite the economic crisis Rompetrol Downstream managed to increase the volume of quantities sold, due to the wholesale channel which recorded variances of 24 percent for the year. The retail area suffered a slump in volume of 8 percent in 2009 compared with the year before.

As against 2008, Rompetrol Downstream’s EBITDA increased by 57 percent in 2009 and tripled in the last quarter. This trend was supported by the increase in volumes, as well as the company’s efforts to reduce costs, the impact of which was felt strongly in the fourth quarter. Despite the global economic downturn, Rompetrol Downstream continued to extend its distribution network in 2009. At the end of the year, the distribution sector was operating a network of 800 stations, 31 percent up on 2008.

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Dana Ciuraru