Bogdan Tudorache

The refining segment’s financial results in 2019 were negatively affected by unfavorable market conditions, Petromidia’s gross refinery margin was lower in 2019 compared with 2018 (39.5 $/t in 2019 versus 45.9 $/t in 2018), show the company Report presented to the Bucharest Stock Exchange.

As commercial measure for partial offset to the negative Refining market margin environment within the year and also as strategic direction of the Company, sales were pushed to for the most profitable channels, thus increasing domestic market full products basket up to the level of 57% from total sales (i.e. +4pp vs. 2018 level of 53%, or 347kt), while diesel & gasoline fuels on domestic market reaching 54% of total fuels sales (i.e. +4pp vs. 2018 level of 50%, or 342kt).

Gross turnover of the refining segment amounted to more than US 4.42 billion dollars in 2019, very close to the previous year, the difference being about 1%, in line with the evolution of international quotations for raw materials and petroleum products, but also of volumes production units. Despite the historical and operational results, the financial results of refining in 2019 were negatively influenced by unfavorable market conditions, margins that affected the annual result of the segment.