Dear Stakeholders,

The responsibility we have for our business, our employees, the environment, and society motivated us to set KMG International on a course aligned with our views on sustainability. Reaching more impressive milestones along our way is definitely a rewarding bonus. 

One such milestone was the 40th anniversary of Petromidia Refinery, which we celebrated in 2019, along with its best operational performance to date, more than 6 million tons of feedstock processed. What started with a Vacuum Atmospheric Distillation Unit in 1979 is now one of the largest modern refineries in Southeastern Europe and the Black Sea region. 

With a 11.4 Nelson complexity index, Petromidia is the processing unit with the highest capability of crude oil Sulphur extraction in the region, exclusively producing Euro 5 fuels and aiming at Euro 6 production. Also, the refinery has a utilization rate of 90%, compared to the European average of 83%, a level reached only through constant investments and the commitment of its employees. Also in 2019, we celebrated 45 employees on the Petromidia platform who have been with us for the past 4 decades. It is because of people like them that we keep getting further. 

Nevertheless, the refinery is also welcoming young professionals who will continue to develop the spirit of Petromidia. And so are all other entities in the Group, seeking for new talent to perfect through dedicated programs, such as our Internship program, currently in its 19th edition. 

2019 also marked the first steps in developing the Smart Refinery concept, by implementing Advance Process Control (APC) which allows predictive control of units and operational flows, aiming to identify optimal conditions for increasing production capacity, improving product quality, reducing energy consumption and providing more effective control of key parameters.

We are actively identifying and implementing digital solutions meant to optimize production, while mitigating the impact on the environment.

Moreover, despite the spectacular increase in output, an all-time record for the production unit and record-breaking levels of gasoline and Diesel produced, Petromidia Refinery managed to record the lowest technological loss to date, 0.8%wt, along with an energy consumption of 2.99 GJ/mt and an energy intensity index of 97.4. The same applies to Vega Refinery, the oldest processing unit in Romania and the only bitumen and hexane producer in Romania. Registering the highest levels of processed feedstock, the second year in a row to exceed the 400 kt threshold, a new record for hexane production, as well as bitumen production, Vega also managed to reduce its energy consumption to its lowest yet, namely 2.39GJ/mt.

Regarding personal safety, our employees, suppliers, and contractors share a goal of reaching zero safety incidents, through our “100% safety” program. KMG International is committed to the total compliance with safety standards as one of the company's core values and we are glad to announce that no fatal incidents were recorded in 2019.  Our commitment to over 5,000 employees, of 17 different nationalities, and their safety is what makes our Group constantly overperform.

Additionally, seeing how our aim is to contribute to the balanced development of all facets of human life, including health and well-being, culture and education, skill development and leadership, or social stewardship, we also reached new milestones in terms of community engagement, 2019 marking the 10th anniversary of our partnership with the “George Enescu” International Festival and with SMURD, the medical emergency service in Romania. 

These are some of the milestones that we got the opportunity to celebrate in 2019. About all the rest, you will find more in our Sustainability Reports, and discover how our performance creates added value for our shareholders and stakeholders. 

Join us on this sustainability journey!

Beimbet Shayakhmetov

Chief Executive Officer, KMG International

(2019 Sustainability Report)