Rompetrol Rafinare, a member of the KMG International Group, reported a higher consolidated net loss of $66.7 million for the first nine months of 2024, compared to a loss of $3.5 million during the same period last year. The company attributed the negative financial results to several factors, including the scheduled shutdown of the Petromidia refinery from March to May 2024, as well as external challenges such as volatility in crude oil and biocomponent prices, fluctuations in petroleum product prices, and changes in global refining margins.
Gross revenues for the January-September period declined by 12% year-on-year, totaling $3.572 billion. Earnings before interest, taxes, depreciation, and amortization (EBITDA) fell by 41%, dropping to $125.3 million.
Additionally, the company faced the impact of a new turnover tax introduced in January 2024, which targets oil and gas companies with annual revenues exceeding €50 million. This legislation added $19.6 million in costs during the nine-month period.
Operational difficulties also contributed to the company’s underperformance. These included extensive maintenance work on the Petromidia refinery and the shutdown of its Mild Hydrocracking (MHC) unit in the first quarter, leading to a reduced refining capacity utilization rate of 74.4%.
The Petromidia refinery processed 3.16 million tons of raw materials during the period, a decrease of 18% compared to last year. Meanwhile, throughput at the Vega refinery fell by 29%, reaching approximately 203 kilotons.
As a result of these challenges, the refining business shifted from a $39.3 million net profit last year to a $38.7 million net loss so far in 2024. However, the petrochemicals segment managed to reduce its net loss by 47%, bringing it down to $34.4 million. The marketing segment, on the other hand, saw a 66% drop in net profit, which now stands at $9.6 million.
