ROMPETROL RAFINARE. Corporate Presentation -1-

Transcription

1 ROMPETROL RAFINARE Corporate Presentation

2 Table of Contents Group Overview History Corporate Legal Structure Rafinare ( RRC ) Shareholders Operations * Refining * Petrochemicals * Marketing Strategy Stock Performance Financials -2-

3 Significant Corporate Events (I) Established as the international operator of the Romanian oil industry Privatized through a Management and Employee Buy Out ( MEBO ), turnover subsequently reduced to below $6 million by Control purchased by Dinu Patriciu and a group of local investors Holding company established as The Group ( TRG ) in the Netherlands The first major acquisition; the Vega refinery located in Ploiesti, is bought and doubles its revenues in the first nine months after the take-over Private equity investment by US-managed Romania & Moldova Direct Fund L.P ( RMDF ) takes over Petros at that time Romania s principal oilfield operator. The company has since been renamed Well Services The Group s largest acquisition, Petromidia S.A. (later renamed Rafinare), Romania s largest and most sophisticated oil refinery OMV of Austria buys 25.1% of TRG NV, RMDF exits. OMV Chairman Dr. Wolfgang Ruttenstorfer joins TRG Board opens subsidiaries in neighboring Republic of Moldova ( Moldova) and Bulgaria ( Bulgaria) Rafinare reaches an agreement with the Ministry of Public Finance to restructure a historical tax liability Rafinare (April) is listed on the Bucharest Stock Exchange & became 20% of the Index (November) In June, both Standard & Poor s and Fitch rated The Group with B- Outlook Stable, upgraded to B+ at present TRG establishes controlled subsidiary Vector Energy AG in Switzerland for oil and products trading -3-

4 Significant Corporate Events (II) OMV sells its 25.1 percent stake in TRG back to the management of Holding Record Financial results with net profit reaching $ 84 million on turnover of $2.35 billion. TRG starts operations in Albania and Georgia and opens a representative office in Moscow TRG buys 100% equity stake in Dyneff Group, France s largest independent petroleum products distributor with operations in France and Spain TRG becomes one of the first 25 companies from EU in in terms of turnover 2007 KazMunayGaz (KMG) acquired a 75% equity interest in The Group NV ( TRG ). TRG will be managed jointly by its two shareholders KMG and Holding -4-

5 Simplified group structure 100% The Group N.V. France 99,6% DYNEFF SA 82,36% S.A. 72,22% 27,78% 98.26% Financial Group SRL 99.95% 85 % Bulgaria JSC 99.50% 80 % Moldova S.A. 60% RP Albania Downstream Sh.A 60% RP Albania Wholesale Sh.A 50,59% 14,72% Rafinare S.A. 9,14% Well Services SA 2,62% 51% 0,1% 70% LLC Ukraine 60% Geopetsa 100 % Upstream International Ltd. 100% Vector Energy S.A. 100% Midia Marine Terminal SRL 100 % LLC 95% Georgia Ltd. 60% Distribution Albania Sh.A. 60% Albania Sh.A. IFN Fingroup Credit SA Rominserv SA 23.42% Ecomaster SA 23.42% 23.42% Industrial Parks SA 60.27% Logistics SRL 99,99% Petrochemicals SRL 99,99% Downstream SRL Rom Oil SA 99,99% 99,92% Quality Control SRL 23.42% Gas SRL 100% 99.4% Eurojet Romania SA 51% Global Security Sistem SA Listed Companies on Bucharest Stock Exchange ( BSE ) -5- Rompetrl Rafinare Group, traded on BSE as RRC

6 Rafinare - Flow of Operations Russia & Caspian Region Petromidia refinery Logistics Retail Crude Oil Refining Logistic Infrastructure Wholesale Domestic Downstream Rom Oil Export Bulgaria Moldova Ukraine Turkey Petrochemicals Petrochemicals -6-

7 Rafinare Petromidia Rafinare Petromidia"

8 Rafinare - Shareholders Name No. of shares (Billion) % The Group N.V. and affiliates Funds/Financial Institutions/Companies % % Individuals % TOP % Others % Total % Free float is concentrated to the first 200 shareholders -8-

9 Rafinare - Refinery Assets Built in , was modernized in the early 1990s and can process a wide variety of crude oils, with different sulfur content and API Capacity: 100,000 bbl/day or 5 mio. to/year Has an unique location Shores of the Black Sea in Navodari, 20 km north of Constanta port Excellent logistics Railway, access to the Danube-Black Sea Channel, its own port The highest (83%) white products yield in the region Nelson Complexity Index of 10.7 (full restart of the steam cracker will change it to 11.2) Excellent location, complexity, highest product yield -9-

10 Rafinare - Crude Supply & Product Sales CRUDE SUPPLY Petromidia imports all its crude oil from Black Sea / Mediterranean Market Petromidia Refinery benefits from processing only Ural crude which is traded at a differential compared to Brent crude Brent Ural average differential increased significantly from 2001 to 2004, was steady between at USD/bbl, and decreased in 2007 to 2.86 USD/bbl PRODUCTS SALES s markets in the last 3 years were: Romania (50% from output); Near Abroad through group s subsidiaries (10-15%) Other regional markets through traders (35-40%) -10-

11 Rafinare Yields Kt; % Feedstock processed 3,827 3,695 3,259 Operational capacity utilisation rate 100% 92% 81% Gasoline 1,293 1,190 1,006 Diesel 1,410 1,374 1,201 Gasoline yield 33.8% 32.2% 30.9% Diesel yield 36.8% 37.2% 36.9% In 2007, we had the highest capacity utilisation rate increasing also the yields for motor fuels -11-

12 Rafinare - Refining Segment Margins USD/bbl or to; USD Gross cash refinery margin/t Net cash refinery margin/t Gross cash refinery margin/bbl PVM Ural Cracking Margin/bbl (Benchmark for Med refineries processing URAL) Difference +13% +41% +68% EBITDA EBITDA margin 3.2% 4.2% 8.3% Better margins than the benchmark margin, but been affected by higher costs at EBITDA level -12-

13 Rafinare Petrochemicals Assets PP (Polypropylene) - 80,000 mt/year (operating at capacity) propylene is supplied by the refinery and by third parties LDPE (Low Density Polyethylene) - 60,000 to/year restarted in October 2006 after a 30 musd capital expenditure program; the main raw material ethylene is imported HDPE (High Density Polyethylene) - 60,000 to/year restarted in Q Ethylene Cracker - 200,000 mt/year (currently in conservation) designed to use naphtha as raw material Small Petrochemicals Unit, Gradually increasing as result of restarting mothballed assets -13-

14 Rafinare Petrochemicals Operations Kt; %; musd Propylene processed Ethylene processed 73 Production sales Trading sales Export 58% 51% 41% Domestic 42% 49% 59% EBITDA

15 Rafinare Marketing Assets Six depots owned in Romania with a total Capacity of 60 kcbm Completely new network of COCO gas stations (115) built in the last 5 years and operating under Brand Network of DODO gas stations (189) developed in the last 2 years operating under Partener Brand Network of Expres movable stations (86) developed in the last 2 years A fleet of Railway and Road tanks used for primary and secondary transportation A very fast growing and modern retail network in Romania -15-

16 Marketing Segment Operational & Margins Kt; USD/t Quantities sold Retail Quantities sold Wholesale & Partners Gross Margin Retail Gross Margin Wholesale & Partners EBITDA (*) In the last 3 years, we have continuously increased the quantities sold in our own retail network -16-

17 Rafinare Strategy Rafinare strives to become, through organic growth and sensible low-cost acquisition that integrate with its existing operations, the leading low-cost provider of petroleum products in the Balkans In Refining, we intend to:» Increase the operational capacity of the refinery with 28 % (from 3.9 mil to/y to 5 mil to/y)» Increase Diesel yields with 22 % (from 37% to 45%)» Operate the Refinery according to EU and Romanian environmental requirements» Total Capital Expenditure for these projects is estimated at USD 350 million over the next 3 years -17-

18 Rafinare Strategy In Retail & Marketing we intend to double our presence in Romania in the next 5 years by: Build or acquire additional retail sites up to a total of 149 COCO stations by the end of Franchise network of 109 DODO stations by the end of Innovate and capture the emerging market of large corporate fleets via Fill & Go system. Increase the non-petroleum sales contribution with the new concept of Hei shops. Total Capital expenditure for these projects ranges between USD million -18-

19 Rafinare Stock Performance -19-

20 Consolidated Audited Financials RRC IFRS Million USD/% Net Revenues 2,610 2,106 1,683 Net Revenues increase 24% 25% 48% EBITDA EBITDA Margin 5.21% 5.8% 9.4% Net result (116) (22) 74 Net result Margin -4.4% -1.0% 4.4% Basic EPS (US cents) (0.578) (0.132)