Rompetrol Rafinare, member company of the KMG International Group, recorded, in the first semester of this year, good operational results, against the background of a higher degree of utilization of the Petromidia and Vega refineries, compared to the same period of last year.

Petromidia, the largest profile unit in Romania, directed to the domestic market two thirds of the total production obtained between January and June 2023. Overall, from almost 2.7 million tons of raw materials processed in S1 2023, the refinery produced more than 2 million tons of fuels (petrol, diesel and jet fuel A1).

However, the company registered declining financial results with a gross turnover of 2.7 billion USD (down 9%), operational profit (EBITDA) of nearly 117 million USD (down 33%) and a negative net result of 34 million USD.

The financial results were significantly influenced by the volatility of international quotations, both for raw materials and for finished products. At European level, refining margins decreased by 125.2 USD/MT (-64%) in the second quarter of 2023, compared to the second quarter of 2022, respectively by 22.8 USD/MT (-18.3%) in the first semester of 2023, compared to the first semester of 2022.

Rompetrol Rafinare continued to be an important contributor to Romania’s state budget, with a contribution of 539 million USD in the second quarter of the year. Also, the contribution in the first half of 2023 was more than 907 million USD, with 128 million USD representing the solidarity tax contribution for the year 2022.

For the first semester of 2023, the company estimated a contribution of 17.7 million USD, taking into account the current rules of OUG 186 – the solidarity contribution, intended to apply a tax of 60% on profit. The company is also considering steps to analyze the tax level from a legal perspective.

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