RIL likely to clock dou­ble-digit gross re­fin­ing mar­gins

Chemical Industry Digest - - News & Views -


In­dus­tries Ltd (RIL) has been ben­e­fit­ing due to a shift in feed­stock to­wards ethane­and mas­sive un­der-util­i­sa­tion of re­fin­ing as­sets in four coun­triesAr­gentina (76%), Brazil (74.3%), Mex­ico and Venezuela (40%). RIL ex­ports a ma­jor­ity of its prod­ucts from its twin re­finer­ies in Jam­na­gar, Gu­jarat.

RIL’s twin re­finer­ies at Jam­na­gar, with a crude pro­cess­ing ca­pac­ity of 1.24 mil­lion bar­rels per stream day (bpsd), pro­vides the com­pany with com­plex­ity and flex­i­bil­ity to man­age its prod­uct yield and crude oil bas­ket bet­ter,re­sult­ing in ahigher yield.

A re­fin­ery’s com­plex­ity is mea­sured in terms of the Nel­son Com­plex­ity in­dex (NCI). RIL cur­rently has an av­er­age com­plex­ity of 12.6. Pro­ces­sion of cheaper crude oil has been pos­si­ble be­cause of re­finer­ies with a Nel­son com­plex­ity of 10 or above that are con­sid­ered com­plex.

Ac­cord­ing to an in­vest­ment an­a­lyst, “Post the $25 bil­lion in­vest­ment in en­ergy, we be­lieve RIL can take ad­van­tage of the flux in feed­stock oil, gas and coal prices. RIL’s shift in feed­stock to­wards eth­ane drives mar­gin ex­pan­sion in FY19.”

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