OMCs flying high on higher refining margins

Rising benchmark Singapore GRM and diesel cracks should drive Sept quarter earnings

The benchmark Singapore complex gross refining margins (GRM) in the September quarter so far has seen strong gains. After staying flat sequentially at $6.4 a barrel (on an average) in the June quarter, the Singapore GRM has moved up to $7.6 a barrel (up 19 per cent sequentially and 48 per cent over a year), according to ICICI Securities’ data. This bodes well for the refining business of public sector refiners and Reliance Industries.
 
The public sector oil marketing companies (OMCs) such as Hindustan Petroleum (HPCL), Bharat Petroleum (BPCL) and Indian Oil (IOC) had seen good core GRMs in