KMGI Posts $86M Net Profit in 2018, Plans to Start Building Petromidia Cogeneration Plant

The company expects to implemented these projects within the framework of the Kazakh-Romanian Fund, established in October last year.

It also plans to implement projects for the integrated digitization of refineries and the expansion of the refinery's logistics capabilities. In total, over the next 5 years, the company plans to implement about 100 projects with an IT component in all business segments.

According to unaudited management accounting results, in 2018 KMGI Group's operational profit (EBITDA) reached $249.7 million and its net profit stood at $86 million.

Petromidia Refinery, the group's biggest asset and one of the most technologically advanced crude processing unit in the Black Sea region, reached new maximal operational efficiency indicators, processing 5.9 million tons of raw materials, 1 million tons more than initially planned and a record high in its 40-year operation history.

The volume of finished products at three KMGI production facilities in Romania - the Petromidia and Vega refineries, as well as at the petrochemicals platform - for the period under review amounted to a record 5.8 million tons.

Retail sales volumes posted growth, with internal and external wholesale and retail channels amounting to 3.35 million tons in 2018, 59,000 tons more than in 2017. Profits from non-fuel retail sales reached $21 million, up 28% on the year.

Crude sales to third parties reached new records, the company said. Exports of raw materials and petroleum products sold through trading channels amounted to 14.9 million tons in 2018, 2.7 million tons more than in 2017. The profit margin from third-party activities amounted to $48.1 million, $16.7 million higher than in 2017.

The group's regional distribution network in Romania, Moldova, Bulgaria and Georgia expanded by about 200 new points of sale (including fuel stations, express stations, skids and reservoirs).

“In terms of key production indicators, 2018 was the best out of more than 10 years of KazMunayGas ownership over KMGI. For the medium term, we intend to double the net profit indicator, to continue implementing KazMunayGas's strategy for expanding its presence on the international market and to increase the shareholder value of the entire KMG group of companies,” said Zhanat Tussupbekov, CEO KMG International, has noted.

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