Rompetrol Rafinare posts a consolidated gross revenues of over USD 1.206 billion in the first quarter, up by 47 percent from the first quarter of 2017, influenced by the volatility of international quotations for petroleum products and by the increase in the volume of products sold.

The consolidated net result was impacted by by changes in accounting policy, from cost model to revaluation model, as at December 31, 2017 for buildings category in non-current assets. The company registered a net loss of USD 3.78 million, up from USD 63,549 in Q1 2017, while the operational profit was at USD 34.6 million, just as much as the last year at USD 34.52 million.

Dated Brent oil quotation increased by USD 13 per barrel (24 percent) in Q1 2018 versus Q1 2017 and settled to an average of USD 66.8 per barrel. In terms of supply, the last events from March pushed up the Dated Brent price to USD 70 per barrel, after U.S. crude inventories unexpectedly fell, dropping below their five-year average for the first time since 2014.

Additionally, OPEC and its allies came out with declarations sustaining the extension of the deal also next year. According to Saudi Arabian Energy Minister, OPEC members will need to continue coordinating with Russia and other non-OPEC oil-producing countries on supply curbs in 2019 to reduce global oil inventories to desired levels. Further support for crude price came from on one hand from Iraq which supports OPEC’s agreement to cut oil output and on the other hand due to concerns that tensions in the Middle East could lead to supply disruptions.

Oil price is expected to increase steady this year, but to remain in a tight band dictated by U.S. shale output growth on one side and OPEC supply restraint on the other. Strong economy perspective will generate a strong crude demand. In March, the last estimation from Reuters is that Dated Brent may rise to USD 75 per barrel in the second quarter of 2018.

Gross revenues of refining segment reached over USD 1.048 billion in Q1 2018 increase by 50 percent being mainly influenced by the volatility of international quotations of petroleum products and by the increase in the volume of products sold compared to similar periods last year. In Q1 2018, the total throughput for Petromidia refinery was 1.52 million tons by 27 percent higher compared with the same period last year when the total throughput was 1.2 million tons, the highest feedstock processed in Petromidia first quarter history.

In Q1 2018 the refining capacity utilization in Petromidia refinery was 98.5 percent higher by 25.1% compared with the same period last year. In Q1 2018, the total throughput for Vega refinery was 76,676 tons, by 26 percent higher compared with the same period last year, when the total throughput was 60,834 tons. In Q1 2018 the refining capacity utilization was 92.9 percent, higher by 19.2 percent compared with the same period last year.

The company’s financial results were positively influenced by favorable market conditions (refining margin of USD 44.5/t) and by production and energy process optimization programs (increase of white products yields) and operating costs optimization, programs that started in the year 2014 and continued until present days. Rompetrol Rafinare S.A. continued to be an important contributor to Romania’s fiscal budget with over USD 333 million in Q1 2018.

The post Rompetrol Rafinare posts a loss of USD 3.78 mln in Q1 and an EBITDA of USD 34.6 mln appeared first on Business Review.