The KMG International Group has recorded USD 30.6 million in net profit as compared to a level of USD 5.2 million recorded between January and June 2017. The result was supported by in particular by refining and petroleum product trading, and also “by the internal optimization and cost reduction programs”.

Based on an increase by 27% of the processed raw material quantities and by 80% of the total volume of marketed products during the first quarter, the Group has obtained an EBITDA operating result of de USD 114.6 million, exceeding the one that has been reached during the similar period of the previous year by 60%. The gross turnover of the Group was of USD 6.67 billion during the first half of the year, USD, an increase of the indicator by 65% compared to the level reached during the first half of 2017, in line with the evolution of the prices of raw materials and petroleum products. During the first half of the year, KMGI transferred over USD 930 million to the Romanian state budget.

Refining and petrochemistry

The Group’s manufacturing facilities in Romania have processed a total quantity of raw material of 3.4 million tons during the first half of the year (+27), KMGI being the largest domestic refiner (Petromidia Navodari and Vega Ploiesti Refineries) and the sole manufacturer of polymers, hexane or road bitumen. “Rompetrol Rafinare – the operator of the processing facilities, has recorded a significant increase in the operating and net result, up to a level of USD 85.8 million and respectively, USD 2.8 million.”

Petromidia Refinery has obtained approx. 2.42 million tons of fuel during the first half of the year, of which more than 64% represented Diesel fuel and special aviation fuel – jet fuel. At the same time, Vega Ploiesti Refinery has processed an approximate total quantity of 194 thousand tons, an increase by 28% compare to the similar interval of 2017. In May, the facility has recorded a historical record of the processed materials, 42 thousand tons and also a record of 13 kt of Bitumen production.

The use level of the processing capacity increased by 28% in the case of Petromidia Refinery (98.45 %), respectively by more than 25% in the case of Vega Refinery (117.53%) during the first half of the year.

Retail and wholesale

During the first half of the year, the domestic and regional fuel demand was affected by both the severe weather conditions during the first quarter and the general economic conditions (the impact of domestic and international price evolution).

Through its retail divisions in Romania, Bulgaria, Moldova and Georgia, the Group has reached an increase by 5% if the fuel volume sold during the first half of the year, up to a level of approx. 1.5 million tons. The Romanian subsidiary has increased the sold fuel quantity (including liquefied petroleum gas) by 12%, compared to the level of 950 thousand tons during the first half of 2017.

At domestic level, total petroleum product sales during the first half of the year reached 1.4 million tons, approx. 15% over the result obtained during the same period last year. The direct sales of the manufacturing facilities increased by 37%, up to 372 thousand tons, as the Petrochemical Division also improved the quantities of polymers delivered in Romania by 26% during the first half of 2018.

KMG International continued to expand its regional distribution network, reaching a total of 1.094 distribution facilities (own stations, partner stations, express stations, internal bases) at the end of June, an increase by 88 facilities compared to June 2017.

During this year, the Group has also introduced the concept of internal bases in Georgia (20 cubic meter tanks installed on the premises of the companies having motor vehicle fleets), having at present 14 facilities. It has opened in the first half of the year 3 new gas stations in Moldova Republic and 2 new units in Romania (Bacau and Bragadiru), where KMGI wanted to continue the interior and exterior rebranding with focus on Expres stations, LPG skids and Rompetrol Partner network.

Trading and supply chain

KazMunayGas Trading – the Group’s trading division – recorded a total volume of traded raw materials and petroleum products of over 11,5 million tons during the first half of the year, an increase by 35% compared to the level reached in 2017. They also included the raw materials delivered for supplying the Group’s manufacturing facilities, but also the transfer/sale of petroleum products to the subsidiaries in the region and external partners.

The total petroleum product sales at the level of the Group reached 4.45 million tons during the first half of the year, of which 1.4 million tons in Romania.

KMGT is also the operator of the oil volumes produced by KazMunayGas for export. Thus, KMGT delivers oil to Petromidia Refinery and carries out trading operations for selling oil on international markets.

100% of the crude oil processed by Petromidia Refinery during the first half of 2018 was unloaded through the Group’s marine terminal located at 8.8 kilometers from the shore of the Black Sea, directly in the tank park, the finished products being subsequently delivered by road, railway and sea (Midia Năvodari Harbor).

The total quantities of petroleum products delivered in semester 1 2018 via ships, barges, wagons and tankers from Petromidia and Vega refineries were over 3.6 million tons.

Between 2009 – S1 2018, the number of vessels operated by Midia Marine Terminal amounted to 4463 ships and barges operated in Midia Harbor, and 424 oil tankers through the offshore marine terminal. The total quantity of raw materials delivered to the Petromidia refinery during this period was approximately 40 million tons.