Rompetrol Rafinare, a member of the KMG International Group, reported a net loss of $75.2 million for the first half of 2024, marking a 120% increase from the previous year. This significant loss was primarily driven by volatility in the refining sector and a two-month turnaround at its refineries.
The company’s revenues fell by 22% year-on-year to $2.113 billion during the first six months of 2024. Additionally, earnings before interest, tax, depreciation and amortization (EBITDA) dropped by 62% to $44.9 million. The financial difficulties were compounded by a new revenue tax introduced in January 2024, targeting oil and gas companies with revenues exceeding €50 million in the prior year. This tax incurred costs of approximately $6.3 million for Rompetrol.
The Petromidia refinery underwent a general turnaround, and its Mild Hydrocracking (MHC) unit was non-operational in the first quarter of 2024, resulting in a 65.3% reduction in the utilization of refining capacity. During the first half of the year, Petromidia processed 1.73 million tons of raw materials, a 35% decline compared to the previous year. The Vega refinery processed 117 kilotons of raw materials, down 39.4%. Consequently, the net value of sold end products decreased to $1.23 billion from $1.736 billion the previous year.
The refining segment’s net loss increased by 224% year-on-year to $47.3 million. The petrochemicals segment also saw a rise in its loss, up 28% to $29 million. Conversely, the marketing segment’s net profit fell by 64% to $7.4 million.
As of the end of June, Rompetrol Rafinare’s marketing segment operated a distribution network of 1,328 points of sale, including its own stations, partner stations, and mobile units.
