Rompetrol Rafinare Posts Narrower Loss In 1Q, At $11.3M

05.12.2011 By Florentina Dragu

Romanian Rompetrol Rafinare (RRC.RO), the refining unit of the country's second-largest oil group Rompetrol, Thursday said its net loss narrowed to $11.3 million in the first quarter, from $57.3 million in the year-earlier period.

Rompetrol switched to positive earnings before interest taxes depreciation and amortization, or EBITDA, of $46 million in the first quarter, from negative EBITDA of $19.5 million in the corresponding period of 2010.

The company reported consolidated net revenues of $897.3 million in January to March, up 32% on the year.

"The increase in revenues is mainly the result of higher international prices for petroleum products," Rompetrol said in its financial report.

It said crude oil prices increased by 38% in the first quarter from the year-ago period.

Rompetrol's IFRS results are unaudited and include the results of Rompetrol Rafinare S.A. and those of its subsidiaries, Rompetrol Petrochemicals, Rom Oil S.A., Rompetrol Downstream, Rompetrol Logistics and Rompetrol Gas.

Broken down by core business, Rompetrol's refining unit reported a net profit of $7.1 million in the first quarter, versus loss of $51.4 million in January to March 2010.

Pretax revenues rose 29% on the year to $937.3 million, again boosted by higher international oil prices. The refining unit switched to an operating profit of $26.5 million in the first quarter, from operating loss of $28 million a year earlier.

Total fuel output reached 725,000 tons in January to March, up 3% on the year.

The marketing sector posted a net loss of $24.6 million in the first quarter, significantly wider compared to a loss of $2.7 million in the year-ago period.

Rompetrol said the results were negatively affected by lower commercial margins and the leu's depreciation against the US dollar. Nevertheless, fuel sales rose 5% on the year in the first quarter, mostly due to an 11% increase in wholesale business.

In the petrochemical sector, Rompetrol reported a net profit of $5.3 million in the first three months, versus loss of $1.9 million in the same period of 2010. Pretax revenues in the segment rose 46% on the year to $106.4 million.

"The increase is mostly due to higher quotations of petrochemical products in international markets and a 24% growth in sales," Rompetrol said.

Rompetrol Rafinare is part of Dutch-headquartered The Rompetrol Group, which is fully owned by Kazahstan's KazMunayGas.

On the Bucharest bourse Thursday, Rompetrol Rafinare closed down 0.2% at RON0.0509 a share.