Posted by Johnzhang > 2022-08-28 09:36 | Report Abuse

Fuel pricing mechanism in Malaysia.

Price of MOPS + Operation Cost + Profit Margin for Oil Companies + Profit Margin of Petrol Dealers + Alpha = actual cost of petrol at petrol station level .

The government Sales Tax policy and Subsidy finally determine the pump /retail price paid by consumers .

MOPS – Which also stands for Means of Platts Singapore, is a calculation done by a company in Singapore called Platts. They provide different kinds of complex calculations and one of them is the price of refined oil.

A buyer of a finished (refined) oil product will refer to the MOPS index as a better indicator/benchmark of world prices rather than crude oil prices. The MOPS price typically has a premium over the crude oil prices. This is why the Malaysian government uses MOPS to determine fuel prices rather than NYMEX crude oil prices.

Operation Cost – Multiple different costs (including transportation and marketing) which is a pre-set amount by the government at 9.54 cent per litre (Peninsular Malaysia), 8.98 cent per litre (Sabah), and 8.13 cent per litre (Sarawak).

Profit Margin for Oil Companies – This is when the Oil companies make money. Pre-set by the government at 5 cent per litre (petrol) and 2.25 cent per litre (diesel).

Profit Margin for Petrol Dealers – The petrol stations make more money per litre of fuel. Pre-set by the government at 12.19 cent per litre (petrol) and 7 cent per litre (diesel).

Alpha – The difference between the MOPS price and the actual price that is transacted between oil companies and refineries. This is set at 5 cents per litre (petrol) and 4 cent per litre (diesel).

Next comes sales tax and subsidies by the government. According to the Sales Tax Act 1972, the Malaysian government can collect a maximum sales tax of 58.62 cent per litre for petrol and 19.64 cent per litre for diesel. This takes place when the real price of petrol and diesel at the stations are lower than the fixed retail price. Then, the government can either take profit from this or revise the fuel price to be lower to remove the difference in price so that the savings can be for the people.

Apart from that, if the fixed retail price of the fuel is lower than the actual cost of the petrol and diesel at the pumps, the government can pay a subsidy of the same range.

Posted by Johnzhang > 2022-08-28 09:51 | Report Abuse

I think most people trust what you said because it is simple enough to understand. However, many said the opposite is to achieve a purpose and God knows the purpose.
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Posted by probability > 19 minutes ago | Report Abuse

Considering such a tight situation in global refining capacity, with all the above risk potential of further exacerbation.....and long term visibility of Diesel shortage

HY price will shoot up anytime

Its ticking time bomb - trust me on this

Posted by stockraider > 2022-08-28 10:10 | Report Abuse

Yes u can trust & accept what probability said on Petron loh!

But pls do not accept what probability said in Hengyuan mah, whatever good word in hengyuan ....u are face with a kon dubious owner.....that will not share their bounty with us mah!

Be very careful on Hengyuan better sell & switch to Petron loh!

Posted by abc333 > 2022-08-28 10:36 | Report Abuse

https://finance.yahoo.com/news/u-energy-secretary-urges-refiners-180001860.html

Posted by probability > 2022-08-28 11:32 | Report Abuse

@abc333. thanks

U.S. energy secretary urges refiners not to increase fuel exports

Sat, August 27, 2022

The U.S. Energy Secretary urged domestic oil refiners this month to not further increase exports of fuels like gasoline and diesel, adding that the Biden administration may need to consider taking action if the plants do not build inventories.

U.S. refiners have boosted oil product exports this month as domestic crude oil production rose and global fuel demand continued to recover.

Energy Secretary Jennifer Granholm, in a letter sent Aug. 18, urged seven refiners including Valero, ExxonMobil and Chevron, to build supplies of fuels as the United States enters peak hurricane season.

Posted by probability > 2022-08-28 11:35 | Report Abuse

I seriously cannot see a more 'perfect storm' to push HY & PetronM share price up above RM 10 soon...

Sslee, Johnzhang...HOLD DAMN TIGHT!

Posted by stockraider > 2022-08-28 11:37 | Report Abuse

As i say...whatever good temp prospect... Hengyuan enjoy now loh......it will never share with u loh!

Be prepare to sell & switch to Petron to offer better protection to your investment loh!

Posted by stockraider > 2022-08-28 12:10 | Report Abuse

The facts is Petron has better corporate governance & pays good dividend mah!
Also substantial part of Petron business is Petrol station beside refinery which is similar to Petdag that command a better valuation PE exceeding 20x mah!

Lu tau boh ?

Posted by Mikecyc > 36 seconds ago | Report Abuse

Haha kon stockraider .. both counter Price is from Peak Point 1 Sliding …

Why choose only Petronm … any facts n figures .. dont be like in Netx .. a Sida is blowing …

Posted by stockraider > 2022-08-28 12:53 | Report Abuse

Lu tau boh ??

Capitalise on Petron....do not go for konman hengyuan stock loh!

Bcos they will kon u mah!

Posted by i3lurker > 2022-08-28 13:12 | Report Abuse

ps
Raider is the conman who asked others to buy HY at 17.00

pss
its the Casablanca pickpocket at work again?
telling people that there are pickpockets?

Posted by stockraider > 2022-08-28 13:23 | Report Abuse

In 2017....HRC owner was new...Raider unable to passed judgement kon or not mah!

Now raider know after 5 yrs....it is known kon loh!

Posted by Johnzhang > 2022-08-28 14:00 | Report Abuse

Stockraider,
Pls spare a thought to the management, employees and shareholders of HY lah. Don’t label people conman too quickly lah. There wasn’t dividend is largely due to huge capex required to update the plant and to provide huge working capital required for the business.

Petron and HY are both good and have different characteristics.

Posted by stockraider > 2022-08-28 15:07 | Report Abuse

I was complaining previously the samething on Serba too loh!

I was eventually proven to be true mah!

Just be careful on Hengyuan loh!

Better stick to Petron loh!

Posted by Johnzhang > 1 hour ago | Report Abuse

Stockraider,
Pls spare a thought to the management, employees and shareholders of HY lah. Don’t label people conman too quickly lah. There wasn’t dividend is largely due to huge capex required to update the plant and to provide huge working capital required for the business.

Posted by $$ BUYSELL $$ > 2022-08-28 16:22 | Report Abuse

small fish prepare to jump ship.

Posted by i3lurker > 2022-08-28 16:58 | Report Abuse

with DJIA down, I will be very surprised if Petronm does not drop tomorrow

Posted by i3lurker > 2022-08-28 17:01 | Report Abuse

and thats why HY is only worth way below 1.80 ,
since 1.80 is Shell punya disposal price with high profits

after superpump by sharks it can be worth any figure you like,
like say USD100,000.00 per share

Posted by Johnzhang > 2 hours ago | Report Abuse

Stockraider,
Pls spare a thought to the management, employees and shareholders of HY lah. Don’t label people conman too quickly lah. There wasn’t dividend is largely due to huge capex required to update the plant and to provide huge working capital required for the business.

Petron and HY are both good and have different characteristics.

Posted by probability > 2022-08-28 18:56 |

Post removed.Why?

Posted by Johnzhang > 2022-08-28 20:24 | Report Abuse

Pls short it right up to $2.80 , no need go to $1.80. Many will be very thankful to you .

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Posted by i3lurker > 3 hours ago | Report Abuse

and thats why HY is only worth way below 1.80 ,
since 1.80 is Shell punya disposal price with high profits

Posted by i3lurker > 2022-08-28 23:10 | Report Abuse

whatever the price of HY is irrelevant coz its a China Virtual Company
China Virtual Companies never pays out any dividends

so even if you bought HY at RM0.01 per share, it means nothing

Posted by PSAi3alert > 2022-08-28 23:53 | Report Abuse

It's called magic.

Shell sold 51% for USD66.3M to Heng Yuan, and the company's profit jumps from RM335M in 2016 to RM909M in 2017.

Just like how Hibiscus buys assets from Repsol for RM580.967M (from initial agreement of RM890.396M); and voila, the same assets generate profits of over RM600M in the same year for Hibiscus.

Fat 'Kap Nar' running in the streets?

p.s. Shell has some of the best game theory scenario planners in the world. Repsol also have brilliant minds.


---
Page 2 Shell Refining 2016
https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=195215&name=EA_FR_ATTACHMENTS

Page 2 Heng Yuan Refining 2017
https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=199650&name=EA_FR_ATTACHMENTS

Page 12 Hibiscus quarterly results
https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=219788&name=EA_FR_ATTACHMENTS

Posted by i3lurker > 2022-08-29 00:18 | Report Abuse

PSAi3alert

its a typical Malaysian Company
there are many out there in BURSA

wink wink

Posted by Sslee > 2022-08-29 06:26 | Report Abuse

In 2017 nature help HRC profit due to spike in refining margin.
And in 2022 war help Hibiscus, Petron and HRC profit due to spike in crude oil and refining margin.

Refiners Valero and Citgo are preparing to restart operations in the next few days at facilities in Corpus Christi, Texas, near where Harvey made landfall overnight on Friday as a Category 4 Hurricane.

However, analysts said weather conditions and flooding in Houston and Galveston, Texas, would keep many refiners in the area out of commission through much of the week. The region is capable of refining about 2.7 million barrels a day of crude oil, or about 14 percent of total U.S. capacity.

Posted by i3lurker > 2022-08-29 06:35 | Report Abuse

for Virtual Companies, whatever profits these companies make does not belong to the shareholders as dividends are NEVER declared,

so even if HRC makes USD1 Trillion per second it makes no difference to Ordinary Shareholders of HRC, it does not belong to them.

This is the concept of Virtual Companies.

the share prices ups and downs of Virtual Companies are controlled by syndicates based on the Trillions of profits per second

Posted by BobAxelrod > 2022-08-29 06:49 | Report Abuse

FACTS, not rabbit figures from magician's hat........
Short and sweet.....well reasoned, Sslee......
PERIOD !

Posted by Sslee > 20 minutes ago | Report Abuse

In 2017 nature help HRC profit due to spike in refining margin.
And in 2022 war help Hibiscus, Petron and HRC profit due to spike in crude oil and refining margin.

Posted by BobAxelrod > 2022-08-29 06:54 |

Post removed.Why?

Posted by i3lurker > 2022-08-29 06:57 | Report Abuse

sslee
buying shares in Virtual Companies like HRC does not fit my lifestyle.
I have enough money.

You could end up like Raider screaming at people to buy HRC at RM17.00
while Raider himself is selling

wink wink
:)

Posted by BobAxelrod > 2022-08-29 07:11 |

Post removed.Why?

Posted by BobAxelrod > 2022-08-29 07:20 |

Post removed.Why?

Posted by BobAxelrod > 2022-08-29 07:41 |

Post removed.Why?

Posted by Sslee > 2022-08-29 07:58 | Report Abuse

Good morning i3lurker,
Your well intention noted.

By the way stockraider also screaming batikman bjcorp and bjland RM 8 coming.

Posted by i3lurker > 2022-08-29 08:25 | Report Abuse

sslee

Kingdom of Heaven

Sybilla:
There'll be a day when you will wish you had done little evil to do greater good.

Posted by i3lurker > 2022-08-29 08:29 | Report Abuse

I am looking at oil markets all the time
coz my investments are slightly correlated

Iran deal is very close now
Iranian oil now parked in oil tankers offshore Iran could be dumped into world market anytime.

/////Bursa can crash 30-50 points (do we care?)............I'm all in at OnG..........////

Posted by BobAxelrod > 2022-08-29 08:34 |

Post removed.Why?

Posted by BobAxelrod > 2022-08-29 08:37 |

Post removed.Why?

Posted by BobAxelrod > 2022-08-29 08:40 | Report Abuse

Crown Prince told sleepy Joe, OPEC would increase by 1 million barrels..................in 5 years time.

Posted by i3lurker > 2022-08-29 08:42 |

Post removed.Why?

Posted by BobAxelrod > 2022-08-29 08:46 | Report Abuse

Iran giving Joe the run around mah........Iran wants to remain cottage industry......telling white boys to stay home......they will do the pumping themselves, day at fields and night in bed.

Posted by Johnzhang > 2022-08-29 09:47 | Report Abuse

Wow! Both Petron and HY up leh! Very surprising.

Posted by GrowthCapitalist > 2022-08-29 09:58 | Report Abuse

https://www.bloomberg.com/news/articles/2022-08-26/us-and-iran-close-to-nuclear-deal-but-final-push-may-take-weeks

Posted by Johnzhang > 2022-08-29 10:06 | Report Abuse

Nobody is always right and nobody is always wrong. None has the crystal balls to see the future accurately.
————————-
Wow! Both Petron and HY up leh! Very surprising.

Posted by Zhuge_Liang > 2022-08-29 10:09 | Report Abuse

Warren Buffett keeps on buying OXY and CVX in 2022, refinery stocks will perform well in 2022/3.
Buy and hold to win big is a better strategy.

Posted by DickyMe10 > 2022-08-29 10:19 | Report Abuse

RM 2.67 coming soon!

Posted by 888STOCK888 > 2022-08-29 11:14 | Report Abuse

Hoot9

HENG~

ONG~

HUATT AH~


ENGINE STARTED!!!!!! GROOOOOOOMMMMM!!!!!! =D

Posted by 888STOCK888 > 2022-08-29 11:27 | Report Abuse

LIMIT UP TODAY!!!! =D

Posted by Sslee > 2022-08-29 16:04 | Report Abuse

Johnzhang
Hi Sslee, my understanding is different. If the hedging loss is realized in the operating qtr itself , the loss shall be compensated by the higher GP. In this case , the future expected hedging loss is taken in advance and the financial impact will be different. Any reversal of provision made in previous qtr , if not utilized, will directly contribute to additional profit.

I think Johnzhang is right. The new accounting FRS128 requirement to make provision of unrealized loss/gain on unmatured commodity swap contracts based on price on accounting closing date Q2 end 30/06/2022.

Petronm management trying very hard to explained in the AGM whatever commodity hedging loss/gain will be cancel each either with physical revenue or purchase increase/reduce. If this is true then this provision of hedging/derivatives loss of RM166.8 million will be fully written back in Q3.

Or in other word Petronm Q2 profit before tax should be RM (240,671,000 + 166,799,000)

Note: Actually this provision on commodity/derivatives loss/gain is unnecessary.

Posted by AzlanIshtiqal > 2022-08-29 16:41 | Report Abuse

Masih adalah uptrend kepada O&G kaunter. Tunggu ia naik ke harga RM6 lagi

Posted by Johnzhang > 2022-08-29 16:42 | Report Abuse

Thank you Sslee. I waited for your answer for so long .

Posted by Johnzhang > 2022-08-29 16:50 | Report Abuse

OTB, Sslee, Probability ,

I feel that for HY and Petron, after this qtr results which may either be above or below one’s expectation, there is next exciting qtr to look forward to. I like the excitement. Haha…

Posted by OTB > 2022-08-29 16:58 | Report Abuse

@Johnzhang,
I compare Q3 2022 result against Q3 2021 result.
I do not compare Q3 2022 result against Q2 2022 result.
Hence I feel that there is still a growth in Q3 2022.
Thank you.

Posted by value_seeker > 2022-08-29 17:02 | Report Abuse

Results/ PE are some factors in movement of share. Remember they are not the only things. Just look at steel/ plantation and glove. All at some points at some dates had PE as low as 2-3 but the shares continue to drop.