“Our findings have led us to believe that the surge in refining product margins is a lingering problem arising from structural issues: surge in demand post-pandemic, supply shortage due to years of underinvestment and ESG-related pressures, and sanctions on Russian oil — all of which would not be able to be addressed in the immediate term,” it said."
Hopefully not big surprises in next few quarters....
However, we would like to highlight that refineries typically take on progressive hedging positions (forward sales) and due to the lack of access, we are unsure of the spot/hedge portion for both Hengyuan and Petron Malaysia,” it added.
probability is right, re-quote from my previous comment: "based on latest QR, there have 280mil refining margin swap, my guess is the 280mil will offset most of the margin gain in Q1, and assume they are doing minimal hedging in Q2 (i doubt they will not be dump to hedge when margin is all time high), we will be seeing extraordinary earnings in Q2."
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Cakes Moon
6,898 posts
Posted by Cakes Moon > 2022-05-17 11:44 | Report Abuse
Hengyuan huge potential with Brent stablized at $110 while crack spread at sky high $30.