BUSINESS WIRE: TransOil Operations Update

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BUCHAREST, Romania --(BUSINESS WIRE)-- 08.03.2022 --

In light of the current geopolitical turmoil, TransOil wishes to reassure its customers, employees, creditors and stakeholders on the Company’s strong financial and operational footing and medium-term outlook. TransOil continues to benefits from its decade-long investments in governance, human capital, infrastructure and risk management, and is well positioned for future growth.

Founder and CEO Vaja Jhashi said “At present our processing operations are unaffected by current events and our utilization rates remain at historic highs. Our immediate priorities are to mitigate risk, engage with our suppliers and customers, allocate our capital with forbearance, and where relevant, to secure alternative export routes for certain products. We are confident in our ability to carry on operating smoothly and profitably. Our short and medium term funding needs are well covered, with ready access to USD and EUR liquidity that is diversified between market and banks. c.98% of our revenues and EBITDA are in hard currency”.

TransOil has a strong track record of sustainable growth and rising profitability, with 43.6% revenue CAGR and 31.4% EBITDA CAGR in the past three fiscal year. In the last fiscal year, volumes grew by 27%, while revenue expanded by 67% and EBITDA by 43%. Financial leverage as measured by net debt / Adj. EBITDA is low at 1.7x. Following the consolidation of VictoriaOil, TransOil’s competitive positioning has improved further, making it one of the largest Crushing companies in the CEE region. In July 2021, the Company agreed to invest further in Serbia, acquiring two port terminals, as well as storage capacity of 400, 000 Mt. Its unique in-land and waterway infrastructure along the Danube provides TransOil with a clear competitive advantage. Origination, products and distribution are diversified, and margins are best-in-class. Additionally, volumes continue to grow strongly in newer markets such Turkey and the Middle East, underscoring the Company’s diversification efforts and continuous drive for new growth opportunities. In sum, TransOil is anchored by strong fundamentals, well positioned to withstand the current volatility, and ready to capture future growth.

The Company’s medium term outlook is also positive: TransOil is an important originator of key commodities that are experiencing supply-side disruptions, and will seek to responsibly leverage its competitive position as one of the largest vertically integrated agro-industrial businesses in the CEE region to continue to drive value for our stakeholders in the years to come.

The Company looks forward to updating its investors, creditors and stakeholders more fully during its upcoming earnings release scheduled for 25 March 2022.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220308005674/en/

Oleg Lupasco, IR
+373 22 889 324
oleg.lupasco@transoilcorp.com