From a loss of $13.5 million in the prior-year period, Rompetrol Rafinare’s net loss at its petrochemicals business widened to $14.5 million in Q1, mainly due to weakening petrochemical margins.
The company said sales fell 34 percent year on year (YOY) to $34.8 million. From a negative $6.5 million a year earlier, EBITDA was negative at $8.7 million for the quarter. Rompetrol said market pressure on margins affected the results of the petrochemical division.
Due to improving operations at its low-density polyethylene (LDPE) plant, the decline in earnings and sales comes despite a 13 percent YOY rise in the company’s total polymers production in Q1 to 32,700 metric tons from 29,000 metric tons.
In January-March period, the propylene processed was down 27 percent YOY with a total of 28,000 metric tons. Rompetrol’s total petchem sales volumes slumped 22 percent YOY to 37,000 metric tons. Widening from a loss of $2.8 million a year earlier, the refining business reported a net loss of $71.9 million, on sales down 23 percent YOY to $760 million.
From a loss of $14 million in the prior-year period, Rompetrol’s group net loss widened to $87.8 million in the quarter, on sales that fell 18 percent YOY to $929.1 million. Driven by restrictive measures imposed with the onset of the COVID-19 pandemic, the company said the quarter was marked by sharp declines in the oil and gas market.
