KMG Intl Group to Invest $200 Mln in 2015, Mainly in Romanian Refinery

KMG International group, formerly The Rompetrol Group, said on Tuesday it plans to invest more than $200 million (184 million euro) this year, mainly in the upgrade of its Romanian refinery Rompetrol Rafinare.

Rompetrol Rafinare isthe core asset of Netherlands-based KMG International NV, which is fully owned by Kazakh state-owned energy company KazMunaiGaz Group. Rompetrol Rafinare operates the Petromidia refinery and the much smaller Vega refinery.

Petromidia refinery operated at full capacity last year, KMG International said in a statement. It processed 13,800t ofraw materials per day and did not register any scheduled or accidental interruption of activity in 2014.

In 2014 KMG International allocated to investments some $55 million, as the bulk went to the upgradeof 90 Rompetrol gas stations in Romania.

The groupplans to continue investments in the development of itsfuel distribution network in Romania, as well as in the rebranding of Rompetrol gas stations this year, the group also said.

"KMG International’s long-term strategy envisages an organic growth in the countries of the Black Sea region, including the expansion of retail and gas business in Romania, enhancement of operational efficiency of the refinery after the record performances reached in 2014 as a result of the large investments of KazMunayGas in this sector [...],"Azamat Zhangulov, Senior Vicepresident KMG International, said in the statement.

The group also plansfurther organic growth on the priority markets as well asexpansion of activity in the provision of industrial services (EPC) in Kazakhstan, North Africa and the Middle East, he added.

KMG International's net turnover rose 2% to$11.4 billion in 2014.Earnings before interest, taxes, depreciation and amortisation (EBITDA)doubled to$140 million and the net loss shrank to $58 million from $119 million, the group said in the statement.

Amid an increase of 22% of Petromidia refinery fuel production to a record-high of oil production of 2.43 million tcompared to 1.91 million tons in 2013, the sales of petroleum products through Rompetrol gas stations in Romania, Bulgaria, Moldova and Georgia increased by 15 % to 2.23 million t.

Rompetrol Rafinare said earlier itsconsolidated net loss shrank 39%to$58.4 millionin 2014,while turnover grew 15%to $5.63 billion. Its EBITDA surged 198% to$86.4 million, helped by arecord-highvolumeof processed feedstock atPetromidia refinery, of over 5 million tonnes.

Through its two refineries,Petromidiaand Vega, Rompetrol Rafinare accounts for over 40% of Romania'srefining capacity and is the only producer of polymers in the country.

Source: SeeNews