Petromidia Refinery Has The Best Results In History, But Is Likely Due To The Dissolution Of Law In Romania

Petromidia Refinery Has The Best Results In History, But Is Likely Due To The Dissolution Of Law In Romania

The company Rompetrol Rafinare Constanta (RRC), which operates the Petromidia refinery, the largest in Romania, has record financial results, but the company is likely dissolve because of a provision related to the ratio between assets and capital. Officials KMG International, the new name of Rompetrol Group, said that work is carried refinery is normal and record financial results.

“Operational activity of the company is conducted in parameters absolutely normal, not influenced in any way by identifying such non-conformity net asset relational capital. Nor are identified and any anticipated changes in financing activities of society” have KMGI sent officials to request ECONOMICA.NET .

RRC has come in dissolving situation because unmui article of company law. That article refers to the fact that the net assets of a company (the difference between the total assets and total liabilities) must represent at least half of its share capital. Otherwise, the company must be dissolved unless organizes a General Assembly to remedy this situation, insofar as business continuity.
RRC has been notified by ASF in this respect because, at the end of 2015, the company had a registered capital of 4.4 miiliarde lei and, the difference between total assets and total debt was $ 1, 8 billion, less than half of the share capital.

At the end of last week that it will hold RRC aanunţat General Meeting of Shareholders (AGM) to remedy the situation. RRC state is still shareholder, with 44.7% of capital.

Those from KMGI now say that the situation was caused by losses of previous years.

“On the situation of net assets in the RRC, it has not been generated by any financial imbalance evident by recent, but was due to market factors or negative financial results recorded by the company during the economic crisis and the next few years. Thus amid a difficult environment of the refining industry at European and global level, characterized by overcapacity refining and thus a level of refining margins reduced, the company could not generate operational results sufficient to cover the financing costs of the activity and rest the financial expenses. in addition, noted that a material adverse impact on the results of the company is the differences negative currency registered by the company over time amid the exchange rate leu / usd “, say those from KMGI.

“Since 2015, RRC has been operating results and positive financial amid a more favorable market for refining and especially enjoying the full benefits package significant investment to modernize over 380 million USD in Petromidia refinery from 2008 – 2012, “explains those from KMGI.

The refinery has the best results in 10 years

Rompetrol Rafinare recorded a positive net result in the amount of 84 million lei (according to the separate financial statements IFRS LEI) in 2015, marking the passage of the corporation Petromidia and Vega refineries, a historical record of the last 10 years. To second consecutive year, Petromidia refinery reached a record level of efficiency for white products (gasoline, diesel, jet) of 85.7%. Petromidia produced the largest amount of diesel in its history (2.47 million tons) in 2015 at best efficiency (50% versus 48.8% in 2014 and 46% in 2013). also, Vega refinery processed record amounts of bitumen (80,000 tons) and hexane (71,000 tons), virtue improved raw materials and increased demand in the regional market.

Forecast financial results in 2016 is one of continued positive financial results and started 2015 also in accordance with the business plan developed by the company’s financial results positive trend will be maintained.

First semstru 2016, the company recorded a net profit of 143 million lei (individual financial statements in accordance with IFRS LEI), compared to net income of approximately 83 million negative in the same period of 2015 registered Petromidia Refinery a new production record. The amount of raw material processed has reached a level of over 17 tons per day in June, the highest daily amount processed from putting it into operation (1979). Also, Petromidia a new record in terms of reducing energy consumption, inducele EII (Energy Intensity Index) reaching its lowest level in the history of the production unit – 90.8 points, “say those in KMGI.

Petromidia refinery is the largest in Romania, and is owned by KazMunaiGas Group International, controlled by national oil and gas company in Kazakhstan.