Rompetrol Rafinare's financial results in the first half of 2021

Rompetrol Rafinare's financial results in the first half of 2021

Consolidated indicators*		Q2 2021	Q2 2020	H1 2021	H1 2020
Gross turnover	USD	1,278,973,648	596,316,417	2,285,238,133	1,525,454,497
EBITDA	USD	39,368,684	(28,111,976)	68,823,277	(43,678,808)
Net result	USD	(8,091,367)	(38,689,090)	(22,824,507)	(126,471,111)

* Note: The consolidated financial statements of Rompetrol Rafinare include the results of Rompetrol Rafinare S.A. and those of the subsidiaries Rompetrol Quality Control S.R.L., Rom Oil S.A., Rompetrol Downstream S.R.L., Rompetrol Logistics S.R.L. Rompetrol Gas S.R.L and Rompetrol Petrochemicals S.R.L.

Rompetrol Rafinare, member company of the KMG International Group, recorded increasing financial results in the first half of this year, compared to the same period of 2020, as a result of the increase in sales, along with the positive evolution of international quotations for petroleum products.

"The relaxation of the restrictive measures, caused by the COVID-19 pandemic, led to an increase in mobility, and the operational processes were at a level in line with the market demand, which registered a positive trend. Occurred immediately after the closure of the first semester, the unfortunate incident on the Petromidia platform will have negative effects from an operational point of view, given that the production of the refinery is stoped, until we will finalize the repair works in the affected units. However, we are convinced that, in the last quarter of the year, we will return to normal operational capabilities, and our mission is to ensure stability in the petroleum products market, in full compliance with legal norms and respecting safety measures for employees, facilities and communities in the area", said Felix Crudu-Tesloveanu, General Manager of Rompetrol Rafinare.

In the first six months of 2021, the Petromidia refinery operated without interruption, compared to the first half of 2020, when the largest profile unit in Romania was closed for the general turnaround of March-April 2020. Also, the demand, strongly affected by the pandemic context in 2020, has returned to levels similar to those of 2019.

The gross turnover of Rompetrol Rafinare in the first half of the year reached almost 2.3 billion dollars, and the operational profit (EBITDA) had a positive value of about 69 million dollars, compared to the negative value of 43.6 million dollars in H1 2020.

Also, there was an improvement from the net negative result in H1 2020 - 126.5 million dollars, the net loss in H1 2021 being 22.8 million dollars.

Rompetrol Rafinare continued to be an important contributor to Romania's state budget in the first part of the year, with a contribution of 459 million dollars in the second quarter of the year, respectively 838 million dollars in the first half of 2021.

The main shareholders of Rompetrol Rafinare SA are KMG International (54.63% - directly and indirectly) and the Romanian State through the Ministry of Energy (44.7%).

Refining segment*

		Q2 2021	Q2 2020	H1 2021	H1 2020
Gross turnover	USD	1,049,547,992	436,270,421	1,888,567,388	1,202,484,821
EBITDA	USD	5,351,375	(39,100,865)	12,262,540	(50,249,588)
Net result	USD	(29,742,365)	(38,373,307)	(42,320,106)	(110,305,138)
Operational
Raw materials processed – Petromidia	Kt	1,462	876	2,726	2,116
Raw materials processed – Vega	Kt	119	82	188	154
Gasoline production	Kt	360	196	701	520
Diesel & Jet production	Kt	750	516	1,378	1,179
Fuel sales - internal	Kt	671	451	1,222	1,038
Fuel sales - export	Kt	375	243	742	583

*The refining activity includes the results of Rompetrol Rafinare related to the Petromidia and Vega refineries. Rompetrol Refining calculates the gross refining margin as follows - (Sales of petroleum products - Cost of raw material) / Sales volume. Net refining margin is operational profit (EBITDA) divided by sales volume.

The gross turnover of the refining segment reached just over 1 billion dollars in Q2 2021 and 1.8 billion dollars in H1 2021, an increase compared to the same periods of the previous year. The increase is marked by an increase in the refining margin, from 5.5 USD / t in H1 2020, to 27.5 USD / t in H1 2021.

Petromidia Refinery, which represents approximately 40% of the refining capacity in Romania, processed, in the first 6 months of 2021, a total of 2.72 million tons of raw materials and obtained 701 kt of gasoline, respectively 1.37 million tons of diesel and special aviation fuel.

In the first half of 2021, Petromidia refinery managed to obtain good results in the yield of white products (84.67% wt) and the energy intensity index (100.95%).

In turn, the Vega Ploieşti refinery, the only domestic producer of bitumen and hexane, processed 188 kt of raw materials in the first half of the year. The unit in Ploieşti recorded good results regarding energy consumption (2.56 GJ / t) and mechanical availability (98.7%).

In the first half of the year, Rompetrol Rafinare made exports worth 545 million dollars, up 238 million dollars over the same period in 2020 (307 million dollars).

 

Petrochemicals segment*

		Q2 2021	Q2 2020	H1 2021	H1 2020
Gross turnover	USD	68,273,673	27,717,408	115,092,277	62,556,178
EBITDA	USD	11,410,878	(6,942,602)	14,308,490	(15,677,242)
Net profit / (loss)	USD	8,600,809	(9,651,738)	4,411,050	(24,186,426)
Operational
Processed polypropylene	kt	35	20	72	48
Processed ethylene	kt	19	14	24	28
Total sales	kt	37	34	71	71

*The petrochemical segment includes the petrochemical activity of Rompetrol Rafinare and the activity of Rompetrol Petrochemicals SRL.

In H1 2021, in the company's petrochemical segment there was processed 72 kt of propylene. The total production of polymers was 68 kt, and the sales volume was at the same level as in H1 2020 - 71 kt.

The results of the petrochemical division registered significant increases, as a result of the positive evolution of the quotations. The division's gross turnover was 115 million USD, and the net result was positive, 4.4 million USD.

The petrochemical complex is the only producer of polypropylene and polyethylene in Romania, constantly managing to increase its market share by secondary product categories.

Distribution segment*

		Q2 2021	Q2 2020	H1 2021	H1 2020
Gross turnover	USD	837,785,125	439,806,670	1,514,315,946	1,044,994,900
EBITDA	USD	22,219,910	15,488,310	42,300,471	19,639,121
Net profit / (loss)	USD	12,745,681	8,484,542	15,360,746	5,513,548
Operational
Fuel sales retail	Kt	229	163	424	347
Fuel sales wholesale	Kt	335	232	611	503
LPG quantities sold	Kt	96	66	185	144

*The distribution segment includes the results of the subsidiaries Rompetrol Downstream, Rom Oil, Rompetrol Quality Control, Rompetrol Logistics and Rompetrol Gas

The consolidated gross turnover for the distribution segment was over 1.5 billion USD in the first half of the year. Also, operational profit (EBITDA) was 42.3 million USD in H1 2021, while net profit a value of 15.3 million USD.

Fuel sales (in the retail and wholesale area), for the first six months of 2021, amounted to about 1 million tons, an increase of 22% compared to the same period last year.

At the end of June 2021, Rompetrol Downstream's distribution segment comprised 1068 points of sale, including its own network of stations, partner stations and mobile stations (express, internal bases of 9 and 20 cubic meters).