Lower crude oil price is good for refinery. If crude increase price, refinery temporary have higher profit since they bought crude at cheaper price. Therefore, higher crack spread.
Guys can anyone here help answer a few of my questions? Is it mandatory for RON 95 to have Euro 4 certified by the end of this year? If so then what happens to refinery that are unable to comply to that standard?
Euro 4 is the regulation standard that is set by european on the sulphur produced by the vechicle. If you went to petron and other petrol stations theres a Euro 4 logo located next to the Ron 97 and Ron 100 also.
It's alright. I am glad to be of help and share knowledge that i know. You helped me back there when you share those knowledge that you got from the last AGM.
Can experts from this counter elaborate more about the crack spread and how higher crude price affecting the profit for refinery? according to analyst, crude oil price will rise to 90 dollar at the end of the year.
BetorInvest - Although increase in crude prices will increase crack spreads which is positive for Petron's margins, I understand that it's a double-edged sword.
The cost of refining the crude goes up as well since the process entails consumption of part of the pricey crude that's being refined.
I see. When crack spread increase, the cost of refining will also increase due to consumption of the material. But on near term projection, will the profit margin higher than previous quarter when the crude oil price is lower?
But on near term projection, will the profit margin higher than previous quarter when the crude oil price is lower? - Good question but I've proper answer except only to say that there are 2 opposing factors as mentioned earlier - increased spreads vs increased cost.
I'm actually more concerned about the transparency. I feel that Petron investors need proper disclosure as to which specific stations belong to this listed vehicle because theoretically, the management could perform backroom tricks to shuffle them around to our detriment.
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Posted by trulyinvest > 2018-07-24 07:10 | Report Abuse
Wil up above rm8