Romanian Rompetrol Petrochemicals Cuts Prod, Personnel

The production facilities will be shut down in December and January 2009, a period in which some of the employees will be put into technical unemployment.

“It is a temporary measure on the backdrop of restraining the markets in this sector, which is necessary both for offsetting the production according to the polymer demand and also for avoiding the stock buildup. In this respect, we decided to cut polymer production (…),” Dumitru Niculi, Rompetrol Petrochemicals general manager, said Friday in a press release.

Although the company’s end product sales rose by some 40% in the first nine months of the year, and its turnover also increased by 61% to $300 million, the earnings before interest, taxes, depreciation and amortization (EBITDA) were affected by the unfavorable market conditions and high costs of raw materials.

International petrochemicals reference prices registered a significant decline between August and November, while the demand also decreased, the release reads.

Rompetrol Petrochemicals is an arm of Rompetrol Rafinare (RRC.RO), the refining unit of Rompetrol Group NV, and currently employs 531 people.

On Bucharest Stock Exchange Friday, shares of Rompetrol Rafinare closed down 0.54% on the day at 0.0185 lei (EUR1=RON3.7938), thus the company’s capitalization reaches RON390.33 million.

Kazakhstan’s KazMunaiGaz owns a 75% stake in Rompetrol group.

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