Net refinery margins down 20%

Margins estimated to have dropped by 20 to 22 per cent to $3-3.5 per barrel in the FY11 Q1 on quarterly basis.


Express October 13, 2010
Net refinery margins down 20%

KARACHI: Net refinery margins are estimated to have dropped by 20 to 22 per cent to $3-3.5 per barrel in the first quarter of financial year 2010-11 (FY11) on a quarterly basis, according to Topline Securities.

However, these margins are still better than average quarterly margins of $0.5-1 per barrel last year, said Topline Securities analyst Farhan Mahmood.

Profitability of local fuel refineries is expected to be better in the first quarter of 2011, however, circular debt remains a key issue which has affected the output, he said in the company report.

Refining margin is likely to be around $3 to $3.5 per barrel in the first quarter of fiscal 2011, after witnessing margins of $3.8 to $4.5 per barrel in the fourth quarter of fiscal 2010.

The decline in margins is primarily due to lower spread on gasoline, said Mahmood.

Published in The Express Tribune, October 14th, 2010.

COMMENTS

Replying to X

Comments are moderated and generally will be posted if they are on-topic and not abusive.

For more information, please see our Comments FAQ