Romania: Biggest oil refiner sees record production, lower profit

Rompetrol Rafinare, which owns the biggest oil refinery in Romania – Petromidia, recorded a consolidated net profit of USD 22 million in 2017, down by 62% compared to 2016, despite record production levels.

The group’s gross turnover went up by 16%, to USD 4.15 billion, and the operational profit before interest and amortization (EBITDA), increased by 13%, to USD 211 million.

The drop in the net profit was determined by a one-off transaction related to changes in the group’s accounting policies on fixed assets, according to the company’s preliminary report.

“The Petromidia Refinery has reached last year a new historical daily processing record since the incorporation of the industrial platform (1979), 5.66 million tons per year, the equivalent of 16,800 tons per day, up by 5% than the level of 2016. The main technological and operational parameters have reached unprecedented levels, such as the motor gasoline quantity produced by the refinery (1.46 million tons) or the diesel quantity (2.74 million tons), as well as the propylene quantity – 133,000 tons,” said Yetil Utekov, General Manager of Rompetrol Rafinare.

The company’s financial results were also positively influenced by the gross refining margin which in 2017 has improved by 20% against the 2016 one.

Rompetrol Rafinare sells the fuel processed by the Petromidia refinery through over 800 gas stations in Romania and on the markets in Moldova, Bulgaria and Georgia. The company is 54%-owned by KMG International.