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Net loss narrows for Rompetrol petchems business

November 19/2020

MOSCOW (MRC) -- Rompetrol Rafinare (Navodari, Romania) has reported a net loss of USD5.5 million year on year (YOY) for its petrochemicals business in the third quarter, narrowing from a loss of USD16.2 million in the prior-year period despite a 15% decline YOY in sales to USD37.6 million, said Chemweek.

The result also improves sequentially on a net loss of USD9.6 million in the second quarter. The company processed 21,000 metric tons of ethylene in the quarter, up from 10,000 metric tons a year earlier, and 32,000 metric tons of polypropylene (PP), down 8,000 metric tons YOY. Polymers production totaled 42,000 metric tons, up from 33,000 metric tons in the equivalent period last year.

The increase in polymers output is due mainly to the improved operating schedule of Rompetrols low-density polyethylene (LDPE) plant this year, it says. Polymers production for the first nine months of 2020 was 102,000 metric tons, up from 92,000 metric tons the previous year.

As MRC informed earlier, the petrochemical activities of Romanian Rompetrol Group have been integrated in the refinery arm since November, 2013, in a move designed to cut costs and increase the overall efficiency of the groups operations. "The integration of the two companies represents the continuation of Rompetrol Groups strategy to concentrate the production activity in a single activity", said then Rompetrol in a statement.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,594,510 tonnes in the first nine months of 2020, up by 1% year on year. Only high denstiy polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, exluding producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.

Rompetrol, the only producer of PP and PE in Romania, is majority owned by Kazakhstans KMG International Group with a 54.63% shareholding, with the Romanian government owning the remaining 44.7%. KMG says it is also considering the divestment of its ownership in several non-core assets in the region, but not from within its core refining, petchems, and retail businesses.
Author:Anna Larionova
Tags:petroleum products, PP, PE, LDPE, neftegaz, petrochemistry, Rompetrol.
Category:General News
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