Skip to main content

PRL enroute to become the first refinery in Pakistan to produce Very Low Sulphur Furnace Oil

Pakistan Refinery Limited, in light of its new operational strategy, has undertaken certain non-CAPEX options, implementations of which is expected to have a positive impact on the Company.

As a part of the new operational strategy the Company has considered new crude oil recipes which are expected to positively change the product slate and also make Refinery compliant with regulatory requirements. This change of crude oil recipe, coupled with other initiatives already undertaken, is expected to contribute as follows:

The Company is now producing Motor Gasoline (Petrol) of 92 RON thus saving the RON differential penalty. The Company is also producing MS 95/97 RON generating additional revenue.
By the end of the current financial year, the Company is expected to produce EURO II standard High-Speed Diesel (HSD) thus becoming compliant with regulatory requirements and saving price differential and penalty, currently being paid on the non-compliant HSD. Price differential and the penalty paid in 2018-19 amounted to Rs. 1.15 billion.
Similarly, by the end of the current financial year, the company is expected to become the first Refinery in Pakistan to produce Very Low Sulphur or IMO-2020 standard Furnace Oil which being a premium product fetches a much higher price than High Sulphur Furnace Oil currently produced.
These initiatives will improve future refinery-margins and help the Company in achieving regulatory compliance. The above initiatives are in addition to the Refinery Upgrade Project and the short to medium term CAPEX projects announced earlier.
Labels:

Comments

Post a Comment

Popular posts from this blog

State Bank of Pakistan issued new instructions over the Interest Rates and Deposit Rates

Post a Comment
Read more

(FFC) Urea price differential may lead to higher offtake for FFC

A 3pc YoY decline in urea offtake has neutralised the impact of higher urea prices (Rs260 per bag over 2019 vs. gas price hike impact of Rs180 per bag), keeping the gross profit flattish.  Results remained below their expectations due to one-off. Naeem shared that Fauji Fertilizer Company FFC posted 19pc YoY higher profit after tax of Rs17.1 billion (EPS: Rs13.45). Higher other income, up 85pc YoY, led by interest earned on cash reserves (GIDC accumulation) was the major earnings growth driver during CY19 while major drags included (i) 51pc YoY higher finance cost and, (ii) 62pc YoY higher other expenses, led by Rs1.1bn of impairment of FFL recorded (-ve EPS impact: Rs0.61/share) during 4QCY19. HIGHER OFFTAKE She recalled that the ECC had approved the removal of Gas Infrastructure Development Cess on feed/fuel gas supply for the fertilizer sector on January 20, in a move to make urea prices more affordable. Following the GIDC waiver, FFC announced Rs300/bag urea price...
Post a Comment
Read more

Trump to Declare National Emergency to Speed Virus Response

President Donald Trump plans to declare a national emergency on Friday over the coronavirus outbreak, invoking the Stafford Act to open the door to more federal aid for states and municipalities,, according to two people familiar with the matter. The president said he will hold a news conference at 3 p.m. in Washington. Trump spoke Friday with Emmanuel Macron, the French president tweeted, about the pandemic, and agreed to organize a video conference with world leaders on Monday to coordinate research efforts on a vaccine and treatments and work on how to respond to the economic fallout. Trump is under increasing pressure to act as governors and mayors nationwide step up actions to mitigate the spread, closing schools and canceling public events. Declaring a national emergency would allow the government to marshal additional resources to combat the virus, and also marks a symbolic turning point for the president,, who has repeatedly compared the coronavirus to the seasonal flu and i...
Post a Comment
Read more