Rompetrol Rafinare Launch on Bucharest Stock Exchange

Transcription

1 History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Rompetrol Rafinare Launch on Bucharest Stock Exchange Philip Stephenson Deputy CEO NV Bucharest, March 24 th, 2004

2 Overview History History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debt Past Stock Market Performance

3 History History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Established as the international operator of the Romanian oil industry Privatized by Management and Employee Buy Out ( MEBO ) and turnover subsequently reduced to below $6 million by Control purchased by Dinu Patriciu and local investor group 1999 Holding company established as ( TRG ) in the Netherlands 1999 The first major acquisition; the Vega refinery, located in Ploiesti,is bought and doubles its revenues in the first nine months after takeover Private equity investment by US-managed Romania & Moldova Direct Fund, L.P. / 2

4 History 2000 Rompetrol takes over Petros at that time Romania s principal oilfield operator. The company has since been renamed Rompetrol Well Services. History 2001 The Group s largest acquisition, S.A., Romania s largest and most sophisticated oil refinery. Rompetrol committed itself to a sustained modernization process to make a state-of-the-art facility in Eastern and Central Europe 2001 Rompetrol creates Rominserv, Romania s first Engineering Procurement Construction & Maintenance (EPCM) company focusing on the oil industry. Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts 2002 OMV of Austria buys 25.1% of TRG NV; RMDF exits; OMV Chairman Dr. Wolfgang Ruttenstorfer joins TRG Board Rompetrol opens subsidiaries in neighboring Republic of Moldova (Rompetrol Moldova) and Bulgaria (Rompetrol Bulgaria)

5 obal History CANADA THE NETHERLANDS USA ROMANIA GREENLAND EUROPE MOLDOVA RUSSIA AZERBAIDJAN KAZAKHSTAN Corporate background BULGARIA AFRICA MIDDLE EAST ASIA TURKMENISTAN Crude Supply Production SOUTH AMERICA IRAQ Operating Costs LIBYA AUSTRALIA Sales and Distribution Summary Financials Historic Debts ANTARCTICA

6 Romanian Retail operations History Oil & Gas Company Exploration & Production Refining & Petrochemicals Corporate background Wholesale Crude Supply Retail (Romania wide) Production Operating Costs Sales and Distribution Services Summary Financials & Supply Companies Historic Debts Oilfield & Drilling Joint Services (logistics, environmental remediation, EPC maintenance) Pipes & Fittings Plant Oilfield & Drilling Vega Refinery Rompetrol Group headquarters Refinery & Petrochemical Plant

7 Retail Network History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts STATII ROMPETROL PETROMIDIA DEPOZITE VEGA

8 History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts

9 History Corporate background Crude Supply Production Corporate background Operating Costs Sales and Distribution Summary Financials Historic Debts

10 Company shareholders History Shareholder No. of shares Percentage THE ROMPETROL GROUP NV ,4283% Corporate background Crude Supply S.C. ROMPETROL S.A ,8122% Production Operating Costs Sales and Distribution Summary Financials Historic Debts SIF TRANSILVANIA ,6392% Minority shareholders (below 10%) ,1203% TOTAL

11 Company shareholding History Rompetrol Holding S.A. (Switzerland) OMV Aktiengesellschaft (Austria) 74.9% 25.1% Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Rompetrol Industrial Parks SA 23% Rompetrol Logistics SA (Romania) N.V. (The Netherlands) 64.43% Rompetrol % Rafinare S.A. (Romania) (Romania) % 99% % 23% Rompetrol Petrochemicals SRL (Romania) 18.81% Rom Oil SA (Romania) Rompetrol S.A. (Romania)

12 Refinery Layout Refinery layout METHANE History HYDROGEN PLANTS 3x1700 NAPHTHA HYDROTREATER PLATFORMER AMINE TREATERS AND CLAUS UNITS PROPANE n-butane OILFIELD CONDENSATE Corporate background Crude Supply HYDROGEN NETWORK JET FUEL HYDROTREATER DIESEL HYDROTREATER AROMATIC EXTRACTION BTX SEPARATION REFINERY FUEL GAS LIGHT ENDS SEPARATION JET FUEL TOLUENE RAFFINATE BENZENE CRUDE Production Operating Costs Sales and Distribution Summary Financials Historic Debts CRUDE UNIT FCC FEED HYDROTREATER DELAYED COKER o-xylene & ETHYLBENZENE SEPARATION p-xylene SEPARATION FCC MTBE PROPYLENE UNLEADED GASOLINE ETHYLBENZENE o-xylene SULPHUR C4 CUT LPG p-xylene REFINERY Plant All capacities are in mt/y m-xylene IZOMERIZATION TEL ADDITION FUEL OIL LEADED GASOLINE DIESEL COKE * All marked installations have been upgraded or otherwise modernized following investments

13 Licensors History CCR UOP FCC UOP Corporate background Crude Supply Production Operating Costs Merox UOP PAREX UOP Sales and Distribution Summary Financials Historic Debts HDPE Mitsui PP Rompetrol (initial technology Mitsui) LDPE - Snamprogetti

14 Logistical infrastructure History Rompetrol Refining (RR SA) general logistical framework includes: Pipelines Maritime berths for loading unloading Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials The pipeline system Railway loading-unloading facilities Automotive loading-unloading facilities Historic Debts The oil pipeline connecting Oil Terminal Constanta to RR S.A., supplies the refinery with Crude Oil The gasoline pipeline connecting RR S.A. to Oil Terminal Constanta, delivers gasoline to Oil Terminal facilities. The diesel pipeline connecting RR S.A. to Oil Terminal Constanta, supplies diesel to Oil Terminal facilities.

15 Logistical infrastructure History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Railway facilities Automated rail post - used to load all finished and semi processed liquid products. Activities unfold via 4 rail tracts, two destined for white products (gasoline, aromatics, Jet A fuel) and 2 for black products (gasoil, diesel, heating fuels). GPL post used to load liquefied petroleum gas, the facility has 12 loading sites distributed along two rail tracts. Interim post used to unload gasoil and vacuum distillate containers, it is endowed with 20 unloading sites distributed along two rail tracts. Crude unloading post - a new location used to unload crude and furbished with 30 unloading sites. Naphtha-MTBE gasoline unloading post used to unload the raw material for the HB and MTBE installations, the post has 20 unloading sites along 2 rail tracts. Solids loading post - used to load petroleum coke and sulfur with sites along two rail tracts Non-standard product unloading post used to unload containers which do not comply to production standards in point of quality

16 Logistical infrastructure History Maritime loading unloading berths Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Berth 1-4 used to unload crude from vessels of up to dwt. Berth 9 used to load various processed products (gasoline, diesel, Jet A fuel) and unload various finished and semi processed materials (MTBE, gasoil, vacuum distillate) from ships of up to 5000 tdwt.

17 History Corporate background Crude Supply Production Considerations on crude supply Operating Costs Sales and Distribution Summary Financials Historic Debts

18 Urals CIF Med Prices Vs. Brent History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts

19 Urals Med Margins History Urals Med Cracking Margins (USD/bbl) Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

20 Types of crude used (evolution in percentages) History 100% 244, ,419 Corporate background Crude Supply Production Operating Costs Sales and Distribution tons 50% 1,839,937 2,606,312 4,011,500 Summary Financials Historic Debts 1,275,045 1,004,380 0% Low sulfur High sulfur Low sulfur High sulfur

21 Crude prices (Petrom versus other sources the refinery uses) History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts

22 Refinery vs. Crude margins History Evolution refinery margin Urals reference Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts $/barrels of crude $5.00 $4.00 $3.00 $2.00 $1.00 $0.56 $2.34 $0.89 $1.77 $4.18 $3.67 $

23 History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Production

24 Automotive facilities Utilization History Totals 350 3,333,160 Corporate background Crude Supply Production Operating Costs '000 to ,131,859 Sales and Distribution Summary Financials Historic Debts Total feedstocks Crude oil Other feedstocks , Jan-03 february march april may june july august september october november december Jan-04 Nameplate capacity 4.8 million tons Planned capacity for to reach 4.0 million tons

25 Crude processed History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts

26 Evolution of raw materials History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts 000 tons Total Feedstock Crude Other raw materials

27 Evolution of Euro standard production vs. types of crude used History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Products Euro Products Sweet Crude Sour Crude

28 Euro standard production History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Premium E Gasoline replaces Leaded Premium and is destined for use by Dacia owners whose cars have a carburetor engine. This type of gasoline, which does not contain any lead tetra ethylene anymore, does not result after burning in noxious fumes filled with lead and lead oxides which are damaging to human health and the environment. EURO Standard Unleaded Gasoline is low in sulfur and is meant for use by engines with incorporated catalyst for the exhaust system. EURO Plus Unleaded Gasoline is low in sulfur, and contains low quantities of olefins, benzene and other aromatics, thus being the equivalent, in point of quality, of the fuels marketed for EURO engines in Western Europe. EURO Super 98 Unleaded Gasoline is, quality-wise, the top quality fuel for Euro engines. This type of gasoline has the lowest sulfur content (a maximum of 50 parts per million) and fulfills the most demanding environment protection requirements. It is meant for use in engines demanding high-octane fuels (higher compression margins). EURO 3 Diesel is low in sulfur (a maximum of 350 parts per million) and will replace a type of diesel of maximum 500 ppm, thus decreasing polluting emissions of oxides. It is meant for all Diesel euro 3 compliant engines. Super EURO 4 Diesel has a sulfur content of below 50 ppm and is compliant to all European standards. It is meant for Diesel engines furbished with catalytic systems for reducing emissions, compliant to Euro 4 pollution standards and with a cetanic count of min. 51.

29 Production Costs - $/ton History Production costs $/to Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts jan feb march april may june july august Month/2003 sept oct nov dec jan

30 Product allocation sales to clients, raw materials to other group companies History Other Finished Products Feedstock for Vega Feedstock for Petrochemicals Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts 4% 2% 94%

31 History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Operating costs

32 Operating expenses History Corporate background Crude Supply Production Operating Costs Costs Sales and Distribution Summary Financials Historic Debts

33 c o n su m to ta l Evolution of total consumption and losses of materials from raw materials to finished products History Corporate background Crude Supply Production Operating Costs Costs Sales and Distribution Summary Financials Historic Debts performance %

34 Reduced MTBE volumes History Evolution % MTBE in unleaded gasoline Corporate background 12 Crude Supply Production Operating Costs Costs Sales and Distribution Summary Financials % MTBE Historic Debts 4 %MT BE in bz.fara pb 2 0 Note: Dec-03 MTBE averages $ 460/ton Saves $ 30 m per year

35 Staff Optimized staff/production ratio History No. Staff Rompetrol Rafinare Corporate background Crude Supply Production Operating Costs Costs Sales and Distribution Summary Financials Historic Debts Ian M arch M ay July Sept Nov Ian 2002 March May July Sept Nov Ian 2003 March M ay July Sept Nov Dec 1458 Ian 20 04

36 Upgrade projects - ongoing History Corporate background Crude Supply Production Operating Costs Costs Sales and Distribution Summary Financials Historic Debts Nr. crt. Project 1 Digital Control System: automated installation monitoring 2 Upgrade of the raw material transportation main routes Investment value (USD) Yearly savings (USD) 23,000,000 12,000,000 1,300, ,000 3 Upgrade of the water supply system 550, ,000 4 Maximize MTBE flow 325, , investment projects- completed 1 In-line blending system 6,800,000 2,800,000 2 Upgrade Midia Port 4,000,000 4,500,000 3 Upgrade Coking installation 2,300,000 1,500,000 Note: Short payback periods

37 Investment History Investment figures Corporate background 70,000,000 60,000,000 50,000,000 62,074,683 49,438,265 Crude Supply Production Operating Costs Costs Sales and Distribution Summary Financials USD 40,000,000 30,000,000 20,000,000 10,000,000 21,129,928 13,901,476 12,098,044 5,168,067 6,513,695 18,630,355 6,721,951 Technological investment Environmental investement Capital contribution Historic Debts Year

38 Productivity increase/ staff numbers History Productivity and performance increase 100,000 46,470 Corporate background 10,000 9,005 Crude Supply Production Operating Costs Costs Sales and Distribution Summary Financials 1, Gross revenues/no. of employees Gross revenues/h/employee Historic Debts Year

39 History Corporate background Crude Supply Production Operating Costs Sales & and Distribution Summary Financials Historic Debts Sales and distribution

40 Evolution of overall sales History Corporate background Crude Supply Production Operating Costs Sales & and Distribution Summary Financials Historic Debts

41 Evolution of gasoline sales History Corporate background Crude Supply Production Operating Costs Sales & and Distribution Summary Financials Historic Debts

42 Evolution of diesel sales History Corporate background Crude Supply Production Operating Costs Sales & and Distribution Summary Financials Historic Debts

43 History Corporate background Crude Supply Production Operating Costs Sales & and Distribution Summary Financials Historic Debts Off-takers - international Litasco Vitol SA Rompetrol Bulgaria Glencore International AG Rompetrol Moldova Off-takers - domestic Rompetrol Downstream Romoil OMV Shell Romania Grivco

44 History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Summary Financials

45 Key Figures History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts USD Million ROL Billion Gross Revenues 876 1,038 28,948 34,311 EBITDA (87) 10 (2,891) 324 EBIT (110) (32) (3,635) (1,063) EBT (112) 87 (3,695) 2,879 Net result (112) 87 (3,695) 2,879 Current Assets ,574 14,597 Current Liabilities ,693 8,156 Total Assets ,188 29,949 Share Capital ,230 17,464 Shareholders' Equity ,198 18,417 Total Liabilities ,990 11,532 Average exchange rate 33,055 33,200 Year-end exchange rate 33,500 32,595

46 Financial Ratios History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts USD Million ROL B 9.5% % 2002 Gross Revenues 876 1,038 28,948 EBITDA (87) 10 (2,891) EBIT (110) (32) (3,635) EBT (112) 87 (3,695) Net result (112) 87 (3,695) Current Assets ,574 Current Liabilities ,693 Total Assets ,188 Share Capital ,230 Shareholders' Equity ,198

47 EBITDA Evolution History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Million USD 20 - (20) (budget) 10 Historic Debts (40) (36) (60) (80) (100) (87)

48 Revenues Evolution History 1,600 1,400 1,481 1,200 Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Million USD 1, , (budget)

49 Situation of debt payments History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Historic Debt Millions USD Jan 2001 Dec Debt due to state budget Penalties due Paid to the State Budget

50 Evolution of debt vs turnover History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Historic Debt US$ US$ US$ US$ 70% 51% 46% 0.01% Turnover Debt Historic debt EGO no. 118/ , Official Gazette no. 755/ enables Rompetrol Rafinare SA to issue nominal bonds, face value Euro 25 each, interest EURIBOR for 12 months plus 1,5% yearly, Bonds will become due (and convert to equity shares) after 7 years on September 30, 2010.

51 Contribution to state budget History Taxes paid to state budget Corporate background 400, , ,600 Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Historic Debt 000'USD 300, , , , ,000 50, ,400 61,900 15,300 Year 2000 Year 2001 Year 2002 Year 2003

52 History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Strategic objectives

53 History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Increase the functional capacity from 3.5 mta in 2003 to 4.0 mta in 2004 Decrease average cash conversion cost, including logistic & transportation, per ton from $22 to $18 Objectives

54 Future development of Rompetrol Rafinare depends on the completion of major strategic objectives: History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Objectives To improve quality and performance in order to become the leading low-cost provider of oil products in the Balkan area; To increase quantity of refined products and further increase euro standard compliance; To continue to comply with increasingly stringent environment regulations (Romanian and European); To cut the cost of raw material supply and increase product exports to foreign partners by maximizing operations in the Midia Port; To continually decrease utilities costs thus increasing production value and efficiency. These objectives will be achieved by: A 6.6 mil USD investment in an inline blending unit, the first of its kind in Romania. This installation was completed in July 2003 and has been instrumental in reducing costs and providing Euro quality products; The installation of a buoy terminal in the Midia Port vicinity to reduce loading and unloading costs; The revamp and upgrade of the Midia CET (Thermoelectric Unit) to reduce utilities costs; The implementation of the Digital Control System all throughout the refinery (DCS);

55 History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Stock exchange performance

56 Stock Market Data History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts trading symbol PTRM was traded on RASDAQ until November 11 of 2003 when the company was suspended from trading for a share capital increase and the subsequent listing to the Bucharest Stock Exchange (BVB). The stock underwent a split on January 16, Pre split face value was 214,220 ROL per share and the number of shares traded was Post split, Rompetrol Rafinare stock face value was 1000 ROL/ share and the number of shares traded was Past SE Performance SM

57 Stock price history History Last trading day Tuesday, November 11, 2003 Last price 75,000 Lei Stock Price History Corporate background Crude Supply Production Operating Costs Sales and Distribution Summary Financials Historic Debts Past SE Performance SM ROL 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Mar- 03 Apr- 03 May- 03 Jun- 03 Jul- 03 Month 2003 Aug- 03 Sep- 03 Oct- 03 Nov- 03 Max last 52 weeks Min last 52 weeks 75,147 ROL 31,000 ROL