Oil And Gas Sector Update - Marketing Margins Recover But GRMs Weaken: ICICI Securities

Pipework and refining towers at an oil refinery in Poland. (Photographer: Bartek Sadowski/Bloomberg)

Oil And Gas Sector Update - Marketing Margins Recover But GRMs Weaken: ICICI Securities

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ICICI Securities Report

Auto fuel net marketing margin is up to Rs 2.98/litre on June 21, 2021 but Q1 FY22-to date net margin is at Rs 1.2/litre versus our FY22 estimate of Rs 2.5/ litre.

Net margin at latest prices is Rs 2.18/litre and further hike of Rs 0.85/litre is needed to boost FY22E net margin to Rs 2.5/litre.

Auto fuel sales volumes are up 31-20% YoY but net marketing margin is down 80% YoY in Q1 FY22-to date.

Reuters’ Singapore gross refining margin in June 2021-to-date is at a six-month low of $1.34/barrel of oil and is down 50% from April 2021 peak of $2.69/barrel of oil hit by fall in all cracks except diesel and jet fuel.

Click on the attachment to read the full report:

ICICI Securities Oil Downstream Upstream Update.pdf


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