1. Refining and Petrochemicals - Rompetrol.com

C. Key directions for 2011-2015
Top priorities
» Focusing on the most important TRG assets
» Integrating within/aligning with the mother company,
KMG
» Increasing of market share
» Developing new products, locations, programs
Rompetrol Logistics
The sales volumes have the same structure as it did the previous
year:
- Primary Distribution (railway transportation) – 74%;
- Secondary Distribution (road transportation) – 26%.
Sales Volume by Activity
(thousand tons)
3,000
2,500
2,000
1,500
1,000
500
671
1,865
0
2009
¢ Primary ¢ Secondary
Primary Distribution
Retail « Rompetrol Annual Report 2010 // 22
653
1,825
2010
The transported volumes during 2010 slightly decreased
compared to 2009 (1,825 ktons vs 1,865 ktons). The decrease,
being around 2% (around 41 ktons), was mainly due to:
- Shutdown of Rompetrol Rafinare (PEM) for repairs and
maintenance in October 2010;
- Outsourcing the activity to the Romanian Railway Group
from the 11th of December 2010.
Sales Volume - Railway Distribution (4 Quarters Rolling)
(thousand tons)
600
500
400
300
200
100
419
479
501
0
2009
¢ Q1 ¢ Q2 ¢ Q3 ¢ Q4
465
449
529
2010
The entity managed to increased by the volumes transported
for Non-Group companies with 69% compared to 2009 (456
515
331
ktons vs. 269 ktons), while the Group volumes decreased with
by 14% (1,369 ktons vs. 1,596 ktons).
Sales Volume - Non Grup & Group Companies
(thousand tons)
2000
1500
1000
500
0
269
1,596
2009
¢ Group services ¢ Non-Group services
456
1,369
2010
The structure for the volumes transported for the Group
entities remained the same as last year: Rompetrol
Downstream and Rompetrol Rafinare (Midia and Vega) being
the main clients, while other small quantities were transported
for Rompetrol GAS and Rompetrol Petrochemicals.
Sales Volume to Group Companies
(thousand tons)
1,200
1,000
800
600
400
200
0
1,186
152
2009
239
1,035
19 100
13
2010
¢ RP Downstream ¢ RP Rafinare - Midia ¢ RP Rafinare - Vega ¢ Other (GAS, RPP)
During 2010, Rompetrol Logistics used 783 wagons (804
wagons in 2009). The fleet was structured in: 423 owned
wagons (439 in 2009) and 360 rented (365 in 2009). Also, the
primary fleet contained: 24 owned locomotives (24 in 2009)
and 5 rented ones (6 in 2009).
17%
20%
2010
2009
80%
83%
¢ Avg Owned locomotives
¢ Avg Rented locomotives
46% 45%
2010
222
2009
¢ Avg Owned wagons
¢ Avg Rented wagons
55%
54%
Secondary Distribution
The transported volumes during 2010 slightly decreased
compared to 2009 (653 ktons vs 671 ktons). The decrease,
being around 3% (around 17 ktons), was mainly due to the
decrease of sales volumes for both our clients: Rompetrol
Downstream and Rom Oil.
Sales Volume - Road Distribution (4 Quarters Rolling)
(thousand tons)
200
150
100
50
0
129
167
2009
195
¢ Q1 ¢ Q2 ¢ Q3 ¢ Q4
179
135
169
2010
The structure per channels remained the same as last year:
COCO (66%), Wholesale (13%), Express (8%), Internal Bases
(8%), DODO (3%) and Cuves (2%).
Sales Volume by Channels
(thousand tons)
700
600
500
400
300
200
100
0
6
92
49
58
444
2009
21
2010
¢ COCO ¢ DODO ¢ CUVE ¢ EXPRESS ¢ RBI ¢ W2C & W2R
During 2010, Rompetrol Logistics used in average 83 tankers
(71 tankers in 2009). The fleet was structured in: 43 owned
tankers (42 in 2009) and 41 rented (29 in 2009).
49% 41%
Service Cost
2010
2009
59%
51%
14
86
50
55
430
187
¢ Avg Owned tankers
¢ Avg Rented tankers
The Service Cost decreased from USD 58,030 thousand in
19
162
2009 to USD 49,612 thousand in 2010 (about 15% - USD
8,418 thousand). The decrease is in line with the transported
volumes variance. The costs that had a significant impact in
this were: Transportation, Maintenance and Salaries.
In 2010, a restructuring plan was launched and most of the
maintenance services to depots was postponed and then
cancelled therefore less maintenance expenses occurred.
Salary expense was linked to headcount decrease, while the
restructuring plan and transportation expenses are linked to
decrease of demand from Rompetrol Downstream and Rom Oil.
Service Cost Structure & Variance
(thousand USD)
60,000
50,000
40,000
30,000
20,000
10,000
0
58,030
17,165
8,615
16,694
2,251
13,305
2009
Service Cost
-606 -186
2009 2010
-1,083
¢ Consumables & Other ¢ Utilities ¢ Salaries
¢ Maintenance ¢ Transportation & Other
-4,460
-2,083
49,612
15,082
4,155
15,611
2,064
12,699
2009 2010 2009 2010 2009 2010 2009 2010 2010
Service Cost
The structure remained the same as the prior year: salaries
(31%), transportation (31%), consumables & other (26%),
maintenance (8%) and utilities (4%). Also each type of cost
decreased: consumables & other with 8%, utilities with 6%,
salaries with 52%, maintenance with 12% and transportation
with 15%..
Summary 2010 and 2011
During 2010 the entity started a restructuring plan as per
Group strategy:
- Handling Operations and Technical & Maintenance were
transferred to Group companies (Rompetrol Rafinare and
Rompetrol Downstream) from Q3 2010;
- Non Core activities (Metallic Manufacture, Service Auto)
were restructured in Q4 2010;
- Primary Distribution was outsourced by Rompetrol Group
to The Romanian Railway Group SA (Non Group company)
from December 2010. All the wagons and locomotives owned
by Rompetrol Logistics were sold and employees transferred
to The Romanian Railway Group SA;
- Shipping Agency activity was transferred to Byron
Shipping SRL (Group company) from March 2011;
- Secondary Distribution was outsourced by Rompetrol
Group to Transpeco Logistics & Distribution SA (Non Group
company) from April 2011. All the trucks and tankers owned
by Rompetrol Logistics were sold to Transpeco Logistics &
Distribution SA and for those in leasing, the contracts were
closed.
RPT_2010 Annual Report_1024x768.indd 22 22/11/2011 10:34 AM