Petromidia can't offset Q1 losses

Rompetrol Rafinare (Petromidia), the main company in the Rompetrol Group listed on the Bucharest Stock Exchange, stepped into the black in the second quarter, but did not manage to offset the losses in the first three months, though. It therefore ended the first half with 9.8 million-euro losses. Its second quarter profit stood at 6.3 million euros. Petromidia had posted 86.4 million-euro half-year net profit. Consolidated for all its three lines of business: refining, distribution network and petrochemistry, Rompetrol Rafinare made $6 million (4.6 million euros) losses, with the net profit of the second quarter standing at 17 million dollars (13.3 million euros). The business of the Petromidia refinery rose to about 706 million euros in the half-year, an increase of 27% on the same time in 2005. Consolidated turnover of Rompetrol Rafinare exceeded 1 billion dollars (0.78 billion euros). Petromidia posted both operating and financial losses. The core business-related losses amounted to 3.26 million euros, while the financial losses reached 6.56 million euros. Rompetrol’s management said the first half losses were mainly due to the unfavourable exchange rate differences related to the bonds in euro issued by the company and to the increase in the expenses with interests on the bank loans taken to buy raw materials, as a result of the increase in the petroleum prices.