Petromidia brought Kazakhs 111m-euro losses

Rompetrol Rafinare (RRC), the main company of the Rompetrol group controlled by Kazakhstan's state-owned company KazMunaiGaz (KMG), ended last year with turnover worth 6.28bn RON (1.48bn euros), down 28% from 2008.

In the first year when the Kazakhs held full control over the group built by businessman Dinu Patriciu, Petromidia continued its losing streak, amounting to 470.3m RON (111.2m euros) in 2009, very slightly up from 2008, when the refinery lost around 465m RON (126.3m euros).

"Financial results were primarily influenced by industry specific factors, such as the 65% lower refining margins and the falling oil product prices, by 30% for petrol and 43% for diesel oil," explain Rompetrol Rafinare representatives.

The results are calculated in line with Romanian accounting standards and they are preliminary.

At a group level, the latest estimates indicated turnover of around $7bn for all the 12 countries Rompetrol operates in, with this year's investment budget standing at $240m.

The Kazakhs have brought $1.8bn to Rompetrol since 2007, when they joined the shareholding structure of the group built by Patriciu.

One of the hottest issues this year for the business environment is the repurchase of the convertible bonds RRC issued in 2003 in the account of $600m debts. Should KazMunaiGaz decide not to repurchase them, the Romanian state is likely to become a majority shareholder again.

In fact, the Romanian state entering the company's shareholding structure is not ruled out, with Finance minister Sebastian Vladescu recently stating KMG may repurchase these bonds only partially.

Last summer, Dinu Patriciu, the businessman who built, for ten years, Rompetrol group around the Petromidia refinery, decided to sell his remaining stake in the company, after having parted with 75% of Rompetrol stock in 2007. Overall, the deal stood at $1.7bn and Patriciu became Romania's wealthiest person.