Rompetrol Rafinare (Petromidia refinery) yesterday said its net profits for the second quarter had declined by comparison with the first quarter due to a fall in profit margins. The refinery''s turnover increased, however, compared with the corresponding period last year. The company''s financial results show a significant increase compared to the first half of last year.
Petromidia achieved an over 65% increase in turnover to reach 989 million dollars, up from 600 million dollars in the first half of last year.
Petromidia posted net profits of 71 million dollars in the first six months of this year, after reporting 41 million dollars after three months. In the corresponding period of last year, the refinery registered losses of 19 million dollars.
This year''s second quarter was the third consecutive quarter in which Petromidia reported profits.
The results announced by the company came as no surprise to the Bucharest Stock Exchange. Quotes for the company''s stock saw no significant changes after the results were announced.
"Profit margins on this market saw a 40% drop in the second quarter as compared to the first three months. This trend was apparent across the whole of Europe," said Dinu Patriciu, the main shareholder in Rompetrol Group. He added that the refinery had also had to deal with "tougher export conditions" in the second quarter.
According to Patriciu, 35% of Petromidia''s turnover growth was due to higher crude oil prices worldwide, while the rest of the increase was the result of the company''s increased operations.
In the first half of this year, the refinery processed 1.81 million tones of crude oil, more than half the amount processed last year (3.5 million tones).
The results released yesterday by Petromidia also include the activity of the company''s two branches - Rompetrol Downstream (which operates the petrol stations held by Rompetrol Group) and Romoil (which comprises deposits and wholesale distribution).
Rompetrol''s first-half turnover climbed to 1.06 billion dollars, up 67% on the corresponding period last year, while its net income rallied to 81 million dollars from the $12m loss posted one year ago.
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