Fundamental analysis of Shatran/Tehran’s poor oil refining performance in May – Tejaratnews
According to Tejarat News, with the publication of annual reports of refining companies in late May, the stock market was charged to some extent. But after a few days, the stock market fell and continued to fall until now. However, no encouraging growth was observed in the monthly performance report of camels in April.
Reviewing the performance report of Tehran Oil Refining Company in May shows that the company has managed to produce 1 million and 57 thousand cubic meters of its products this month.
The main products of the company include vacuum baton, liquid gas, fuel oil and mulch, final gas oil and all types of motor gasoline, the share of production of final gas oil is higher than other camel products.
Of course, the company performed better in April of this year and May of the previous year, and the amount of production of the company was recorded as 1 million 163 thousand cubic meters and 1 million 123 thousand cubic meters respectively in the monthly operator’s report.
Based on this, the company’s production in May this year has decreased by 9% compared to April this year and by 6% compared to the same period in 2011.
The company’s sales volume also went through the same process. Because the company’s sale of one million and 57 thousand cubic meters in May 1402 decreased by eight percent compared to the sale of one million and 146 thousand cubic meters in April.
Compared to the sale of 1,140,000 cubic meters of camels in May last year, this number has decreased by about eight percent.
In the fundamental review of refining companies, it should be noted that the cost of their products is highly dependent on the price of crude oil. So that about 98% of this element is involved in the price of crude oil. It should be noted that the feed received by Tehran oil refinery includes crude oil from Ahvaz, Asmari and North Dezful oil fields, which reaches the company through a 26-inch pipeline.
On the other hand, the pricing of crude oil and the main products of oil refining companies, including Tehran oil refining, is calculated based on the FOB rates of the Persian Gulf, which are reported in Pellets magazine. Also, according to the announcement of the Central Bank, the dollar exchange rate for calculating the feed rate of refineries this year is 28,500 Tomans. In this way, the gas feed of refineries is currently calculated at four thousand tomans.
Risks of camel production
According to the interpretative report of the company, currency fluctuations are considered the most important risk of Tehran oil refining, because the income and food of the refining companies are directly calculated with the dollar rate. For this reason, with the increase in the price of the dollar, the cost price of Tehran’s oil refining products will increase.
Also, in relation to the company’s income from the sale of products, it can be said that although the price of the dollar has risen to 60 thousand tomans in recent months, but the refining companies could not convert their dollar income into Rials at this rate, and finally the income of the refineries is in dollars. 38 thousand 500 (remittance dollars) was calculated.