Refineries have potential with current situation to outperform index by least 100%. World 've crude oil boiling above 120$ but couldn't hv enough refining capacity to convert this crude oil into useful products like jet fuel, petrol & Diesel.
@AdeptMarket
Thread - 1/6 🔽
@AdeptMarket
Thread - 1/6 🔽
As demand picking up suddenly post COVID, global refineries couldn't able to meet demand by Airlines & other domestic demand. Result to this last week American President given order to open closed oil refineries to meet demand.
Thread - 2/6🔽
Thread - 2/6🔽
Similar situation arising in African Continent also, where shortage of oil refineries shot up fuel prices. Due to this situation GRM (Gross Refining Margin) shot up like wild bull to all time high of 30.15$ BBL on Singapore exchange.
Thread - 3/6🔽
Thread - 3/6🔽
Last financial year it was hovering around 6 - 7$ BBL. Biggest beneficiary of increase in GRM are Oil refining companies like #Reliance industries, #MRPL & #CHENNAIPETRO . As per @MotilalOswalLtd 1$ increase in GRM is equivalent to 25% change in EBITDA .
Thread - 4/6 🔽
Thread - 4/6 🔽
When GRM was around 14$ BBL, oil refining company #MRPL brought 3k crs PAT in Q4 . Just imagine profit when GRM sustaining above 20$ BBL. With current situation any analyst doesn't see any cool off in GRMs. High GRMs & healthy profit margins will skyrocket ...
Thread - 5/6🔽
Thread - 5/6🔽
Share price of oil refining companies. Just wait for next quarter result 😌
#MRPL
#CHENNAIPETRO
#RELIANCE
@AmitabhJha3 @AdeptMarket
Thread - 6/6 ☑️
#MRPL
#CHENNAIPETRO
#RELIANCE
@AmitabhJha3 @AdeptMarket
Thread - 6/6 ☑️
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