Thread by @ValueIn84502221

These 6 Sectors Profitability Impacts Negatively due to Higher Crude Oil Prices. Crude Oil Prices Touched $115/bbl. For educational purpose.

Thread 🧵 1/6 ,RT for max reach

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Tyre : Crude oil derivatives such as carbon black , synthetic rubber etc forms nearly 30-40 % cost of producing a Tyre. Hence higher input cost due to high oil price impact Tyre companies profits and profits margin.
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Paint: Higher crude price is negative for paint companies’ as it hurts their profit margins. Crude oil and its derivatives are key raw material and account 50% of the paint companies total expense.
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Cement: Higher crude prices causes rice in petcoke prices and freight costs due to this profit margins impact. Cement companies power and fuel expenses form approx. 25-30 % of operating cost.
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Aviation: Jet fuel or aviation turbine fuel (ATF) forms a huge part of operating costs of airlines. Higher crude price has negative impact on aviation companies’ profitability.
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FMCG and Packaging Companies : higher crude price hurt margins of FMCG companies as several raw material items and packaging cost increase.
End,
This Information is for educational purpose only. For more details ,further self study is required.