Posted at 2/28/23, 6:05 PM Press releases

PRESEE RELEASE About the preliminary financial results of 2022

Rompetrol Well Services S.A. (PTR) went on consolidating and developing its core activity in 2022, especially the provision of the special services at the well. In the context of the impact generated by current regional situation and especially the impact of COVID-19 pandemic on the global supply chain, the company managed to keep its position as a leader in this area, as well as to obtain positive financial results.


In 2022 the upstream market continued to be volatile, with low investment and works level from clients’ side. Moreover, the geopolitical context and the uncertainty faced by the region during this period triggered a sharp increase in the purchase prices for the goods and services contracted by the company for the current activities, but also a fluctuation in delivery terms.

There were also divestment/adjustment decisions of the operators' investment budgets, as well as deficiencies in the supply chain with raw materials specific to the upstream industry. The cumulative effect of these factors was reflected in delays in starting and resuming drilling operations.

Notwithstanding the constantly changing market conditions, RWS managed to secure its leading position in the specific market segment through diversity and flexibility in offering specialized services customized for each individual client. The company provides a wide range of services for oil and natural gas wells (cementing, stimulation, well casing operations, etc.).

During the past year, Rompetrol Well Services carried out a number of 107 primary cementing operations, 173 secondary cementing operations and 398 stimulation operations, a total number comparable to that recorded in the previous year, but the complexity of these works is different.

During 2022 the Company managed to win, as a result of a public tender, a contract for cementing services necessary for capital repair operations for OMV Petrom, with an estimated value of approximately EUR 3.48 million and for a period of 4 years, as well as a service contract with cementing aggregates and other equipment specific to the drilling and extraction activity for SNGN Romgaz with an estimated value of 12 million RON and for a period of 2 years. Furthermore, in 2022, the Company was declared the winner after participating in a tender organized for the award of a nitrogen services contract with an estimated value of EUR 3.52 million and for a period of 5 years. The Company also carried out specific activities in South-Eastern Europe, collaborating with partners from Bulgaria and Serbia.   

RWS continued also in 2022 the equipment modernization program, focusing on updating the technologies for well cementing and stimulation services. Thus, during the year, the Company purchased two new unites with two pumping lines, a pumping unit with an integrated heating system for the used products and modernized tree acid solution pumping unites. The equipment of the special vehicles with high-pressure pumping lines is in accordance with the current safety requirements of the industry.  

All Company’s commitments were managed keeping the financial balance, ensuring all cash availability for full and timely payment of commercial commitments, of salaries and of the contributions to the budget. The solid liquidity position allowed the Company to fully finance the working capital from its own sources.

Rompetrol Well Services S.A was established in 1951 as a state company under the Ministry of Petrol and Chemistry, having the name "ICOTS - Întreprinderea de Cimentări, Operaţiuni si Transporturi Speciale". From 1990, the company became Petros Ploiesti and was listed on the Bucharest Stock Exchange from 1998. The Rompetrol Group (currently, KMG International) took over the majority stake in 2000, currently holding a 73% stake.
 

RON        

Operational revenues, out of which:

53,228,897

45,961,136

14,973,992

13,392,577

Services rendered

52,295,150

44,185,085

14,521,483

12,476,862

Operational expenses

(53,825,976)

(46,227,637)

(14,978,840)

(13,500,784)

Operational results

(597,079)

(226,501)

(4,848)

(108,207)

EBITDA*)

3,580,727

4,275,490

861,419

1,818,899

Net financial revenues  

3,474,405

2,040,690

1,247,496

481,969

NET RESULT

2,612,301

1,629,634

1,200,480

355,063

*) EBITDA = Operating result - value adjustments regarding fixed assets and current assets - adjustments regarding provisions

The full version of the Rompetrol Well Services SA Preliminary Financial Results Report (being audited) as of December 31, 2022 is available on the Company’s website: https://rompetrolwellservices.kmginternational.com/en/investor-relations/financial-results-and-reports/annual-reports or on the website of Bucharest Stock Exchange from February 28, 2023.
 

Georgian Stefan Florea

GENERAL MANAGER