Posted by 3iii > 2017-11-13 21:09 |

Post removed.Why?

Posted by 3iii > 2017-11-13 21:10 | Report Abuse

A useful but simplified measure of refinery profitability is the “crack spread.” The crack spread is the difference in the sales price of the refined product (gasoline and fuel oil distillates) and the price of crude oil.

Posted by 3iii > 2017-11-13 21:11 |

Post removed.Why?

Posted by Jon Choivo > 2017-11-13 21:12 | Report Abuse

The crack spread is the easiest measure people have to measure future profit. But it is the least precise.

Before someone say you only need to be roughly right and not precisely wrong.

Remember this, you have no out. The only way hengyuan will go up, if it beats last quarter and last year by a fantastic amount. If it show even flat earning. Sure drop.

Business wise, hengyuan i still ok, but not that cheap anymore.

Posted by 3iii > 2017-11-13 21:13 | Report Abuse

The crack spread tends to be sensitive to the slate of products produced from the refinery. Gasoline and distillate fuel oil (heating oil) are two typically high-valued products, and refineries are generally engineered to maximize production of gasoline and fuel oil.

The crack spread is also sensitive to the selection of the oil price used. There are systematic differences in the prices of heavy crude oils versus fairly light crude oil. Due to these differences, the crack spread calculation (while illustrative) may not be sensible for a particular refinery.

Posted by 3iii > 2017-11-13 21:15 | Report Abuse

The true margin on refining maybe much lower than the simple crack spread would suggest.

Thus, we soon realise the promoters got their estimated profits of Hengyuan so wrong in Q2.

Is analysisng Hengyuan within their circle of competence?

More hypes and hot airs, than real substance are the many posts on the various price levels that Hengyuan may reach! ;-)

Posted by stockraider > 2017-11-13 22:28 | Report Abuse

VERY STUPID COMMENT MAH....!!

LAST YR CRACK MARGIN USD 5.5 BPD
GROSS MARGIN LAST YR = 9.7%

UPTO JUNE 2017 6 MTHS
CRACK MARGIN USD 6.5 BPD
GROSS MARGIN 30-6-2017 = 11.7%

RELATED MAH....THE HIGHER THE CRACK MARGIN SPREAD THE HIGHER THE GROSS MARGIN OF HENGYUAN LOH...!!

WHAT TYPE OF RUBBISH THIS 3iii TALKING LEH ??

Posted by 3iii > Nov 13, 2017 09:15 PM | Report Abuse

The true margin on refining maybe much lower than the simple crack spread would suggest.

Thus, we soon realise the promoters got their estimated profits of Hengyuan so wrong in Q2.

Is analysisng Hengyuan within their circle of competence?

More hypes and hot airs, than real substance are the many posts on the various price levels that Hengyuan may reach! ;-)

Posted by sell > 2017-11-13 22:30 | Report Abuse

Why QR not out? Worse than Pet Dag?

Posted by stockraider > 2017-11-14 08:55 |

Post removed.Why?

Posted by probability > 2017-11-16 14:04 | Report Abuse

Posted by probability > Nov 16, 2017 01:56 PM | Report Abuse X

Study the data presented here carefully, you will never find a generous man sharing & spoon feeding such information in i3.

You will notice that Q3 average Gross refining margin 30 to 40% higher than Q1 (for Brent (Cracking) and Dubai (Cracking) - which is of slightly higher complexity than Simple refiners like Petron who does Hydroskimming).

This will result with Net refining Margin exploding by more than 50% relative to Q1 (minimum)!

Posted by probability > Nov 15, 2017 10:00 PM | Report Abuse X

https://www.iea.org/media/omrreports/MHM.xls

Refer: 50/50 HLS/LLS (Cracking)

Jul-17: 10.48
Aug-17: 13.37
Sep-17: 14.38

Posted by probability > 2017-11-18 20:18 | Report Abuse

Q3 has 2 days extra compared to Q1, that means about 3% higher throughput in theory.