2009 Annual Report - Rompetrol.com

Rompetrol Logistics
2009 Key Achievements:
• the renewal of the quality certificates and the improvement of the safety
and environment operating parameters imposed by the Romanian Railway
Authority;
• the increase of the effective utilization capacity of trucks by 65%, which
sustained the growth in transported volumes by 8% in 2009, as compared to
2008;
• the company managed to reduce the selling general administrative
expenses (SGA) in 2009 with 50% (2.809.000 USD) compared to 2008;
• Rompetrol Logistics reduced service costs with 4% (2.153.000 USD)
compared to 2008;
• the renegotiations of the supply and distribution contracts in order to
decrease the costs;
• capital investments and expenditures carried out in 2009 amounted to USD
690.000 and consisted in the modernization of electric/diesel locomotives
and overhaul of train track.
In 2009, Rompetrol Logistics had a market share of 5%, positioning itself
on the fifth place amongst the companies that operate within railway
infrastructure. Its main competitors are CFR Marfa SA and GFR.
Rompetrol Logistics used in 2009 a number of 844 railcars, whereof 53%
(449) owned and 47% (395) rented from third parties.
The average number of locomotives used by Rompetrol Logistics in
2009 was 36, whereof of 31 were owned and 5 rented from third parties.
Primary distribution volumes recorded a slightly decrease during
2009 by 5% (100 thousand tones) compared to 2009: 1,865,000 tons
transported in 2009, compared to 1,965,000 tons in 2008.
Primary Distribution
(thousand tons)
2,000
1500
1,000
500
0
444
1,521
2008
� Group services � Non-group services
269
1,596
2009
In 2009, a positive trend in satisfying companies of the The Rompetrol
Group, which are Rompetrol Rafinare and Rompetrol Downstream, was
registered.
From the total requirements of the Refinery, amounting 2,225,000
tones, 1,865,000 tones were operated / transported by RP Logistics
which was facing capacity limitations and export licenses availability
and the difference was operated by the outside forwarders.
The main issues the company faced in 2009 on the primary distribution
segment were the increase in both fixed and variable costs, such as
taxes for railway usage, fuel and electricity costs, rent charges for
railway engines and carriages and the fact that approximately 60
carriages became deteriorated, due to faulty conditions.
The total road transportation volumes that were operated through
Downstream depots recorded a 8% growth in 2009, to 670.000 tons,
which meant an increase of 50.000 tons compared to 2008.
Secondary Distribution
(thousand tons)
2008 2009
2009 Annual Report 25
700
675
650
625
600
621
Also, in order to decrease logistics secondary distribution costs, RP
Logistics decreased the weight of contracted third parties tankers fleet.
Tankers fleet distribution
45%
55%
� Owned tankers � Rented tankers
2010 Key Objectives:
• one of the most important future plans for Rompetrol
Logistics is to continue the optimization of the distribution
costs, for both railway and road transportation;
• utilization of the MTF software, for railway traffic and fleet monitoring. The
implementation of the program cost 689.000 USD being implemented as
of December 2009, by the company Ness Romania SRL. The implemented
software allowed RPL to optimize the operational rail routes and
the usage of rail cars, all these with a positive impact on costs;
• in the upcoming years, the company intends to complete an optimization
process, started in 2008, and which is due at the end of 2010;
• executing a Capex program of 547.000 USD for 2010 consisting
in an overhaul of train tracks and rail building.
• with an estimated investments amount of 547.000 USD for 2010, Rompetrol
Logistics plans to overhaul a series of train tracks and rail buildings.
Primary & Secondary activities
(thousand tons)
3,500
3,000
2,500
2,000
1,500
1,000
500
0
671
1,865
2009
� Primary � Secondary
735
2,358
2010
59%
752
2,041
2011
671
41%
777
2,081
2012