What is a refinery margin?

What is a refinery margin?

Refinery margins are a measure of the value contribution of the refinery per unit of input. Typically this is per barrel of crude oil processed, but it could also include other feedstocks as inputs.

What is the margin on oil?

Oil and gas production profit margins are volatile, varying widely with energy prices. The average net profit margin for oil and gas production was 4.7% in 2021 and 31.3% in Q4 2021.

What is refinery throughput?

Refinery Crude Throughput means the monthly volume of crude oil fed to the crude unit at the Refinery, in barrels each calendar month not to exceed 180,000 barrels per day. The crude oil fed to the crude unit shall be determined by utilizing the monthly yield accounting process employed at the Refinery.

What is refinery transfer price?

What do Refinery Gate Price / Refinery Transfer Price (RGP/ RTP) signify? Ans. This is the price paid by the Oil Marketing Companies to domestic refineries for purchase of finished petroleum products at refinery gate.

What is refinery processing gains?

The total volume of products refineries produce (output) is greater than the volume of crude oil that refineries process (input) because most of the products they make have a lower density than the crude oil they process. This increase in volume is called processing gain.

What does refinery utilization mean?

Refinery utilization rate: Represents the use of the atmospheric crude oil distillation units. The rate is calculated by dividing the gross input to these units by the operable refining capacity of the units.

How is refinery capacity measured?

Refinery capacity is measured in two ways: barrels per calendar day and barrels per stream day. Barrels per calendar day reflect the input that a distillation unit can process in a 24-hour period under usual operating conditions, taking into account both planned and unplanned maintenance.

What is refinery RTP?

RTP ‒ Refinery Transfer Price or RGP (Refinery Gate Price) is the price paid by the oil companies to domestic refineries for purchase of finished petroleum products at refinery gate.

What is refining capacity?

The capacity of a refinery or process unit is a measure of its maximum throughput. In refining, capacity is typically measured in terms of the volume of the primary liquid feed that goes into the unit, though there are some exceptions (such as alkylation) where product output is the more common measure.

What are the refinery products?

The major products of oil refining are: LPG, gasoline, diesel, jet fuel, fuel oil, and kerosene—a blend of several different streams produced by the various refinery processes to meet final specifications. These products are then stored in a tank farm on the refinery premises before being delivered to retail markets.

How do refineries work?

Refining turns crude oil into usable products. As the gases move up the height of the column, the gases cool below their boiling point and condense into a liquid. The liquids are then drawn off the distilling column at specific heights to obtain fuels like gasoline, jet fuel and diesel fuel.

What is operating margin vs profit margin?

Gross profit margin and operating profit margin are two metrics used to measure a company’s profitability. The difference between them is that gross profit margin only figures in the direct costs involved in production, while operating profit margin includes operating expenses like overhead.

Why is margin important?

Profit margins determine how much money you are making and represent the overall financial health of your business. Businesses need to pay attention to profit margins to remain fiscally healthy. Profit margins measure how well a company is doing.

What is refinery yield?

Refinery Yield. Represents the percent of finished product produced from input of crude oil, hydrogen, and other hydrocarbons, and net input of unfinished oils.

What are refinery margins?

Refinery margins are a measure of the value contribution of the refinery per unit of input. Typically this is per barrel of crude oil processed, but it could also include other feedstocks as inputs. Refiners typically measure margins at several levels to measure different dimensions of performance:

What is gross refining margin (GRM)?

The gross refining margin GRM is the difference between the total value of petroleum products coming out of an oil refinery (output) and the price of the raw material, (input) which is crude oil. The margins are calculated on a per-barrel basis.

What is a margin in accounting?

Accounting Margin. In business accounting, a margin refers to the difference between revenue and expenses, where businesses typically track their gross profit margins, operating margins, and net profit margins. The gross profit margin measures the relationship between a company’s revenues and the cost of goods sold (COGS).

How are crude oil margins calculated?

The margins are calculated on a per-barrel basis. A barrel of crude, when cracked chemically, produces an entire range of fractionates like petrol, diesel, LPG (liquefied petroleum gas) and furnace oil, each having different applications.