Refinery Cost &
Margin Analytics
Key Questions Understanding the competitive positioning of global operating refineries requires detailed
and complex calculations combined with an extensive foundation of knowledge and
‒‒ How can I benchmark insight. Companies can spend an inordinate amount of time collecting data and analyzing
performance of the refining
macroeconomic trends, cost drivers and supply/demand from disparate sources in order to
industry over time?
assess their competitiveness and optimize profitability.
‒‒ What is the position of our Utilizing our refining knowledge base, comprehensive refinery database, and price forecasts,
refineries versus our competitors
IHS Markit models the competitiveness of >525+ global operating refineries.
or acquisition targets?
Refinery Cost and Margin Analytics combines robust underlying data with visualization and
‒‒ How can I identify weak analytical tools to provide an intuitive way to benchmark the competitive landscape of the
performing refineries that are
global refining industry, at an asset level, with a forecast of their performance.
at-risk of rationalization?
Armed with our refinery benchmarking, companies can evaluate refinery performance,
‒‒ What is the relative determine rationalization potential, and assess potential refinery acquisitions.
competitiveness and viability
of a new refinery investment, Key Features
based on a specific region or ‒‒ >90% of global refinery capacity
refinery configuration? ‒‒ IHSM forecast scenario embedded into model
‒‒ How have companies performed ‒‒ Profitability metrics: Cash cost to produce light products (CCLP) and net/gross
historically and how will they margin estimates, identified by refinery
perform in the future? ‒‒ Operational metrics: Refinery level yields, detailed refinery throughput, refinery crude slate
‒‒ Functionality to generate estimated economics for hypothetical refineries User-input
crude & product price scenarios to efficiently understand refinery performance across
different market environments
‒‒ Annual cost/margin curves: 5 years history & 10 years forecast
‒‒ Quarterly cost/margin curves: 8 quarters history & 8 quarters forecast
A 12-month subscription provides four model updates, which occur on a quarterly basis,
aligned to our proprietary long-term price forecasts and S/D balances, as part of our Annual
Strategic Workbook. Our integrated approach offers you the opportunity to respond as the
market shifts, and ensures your strategic and operational decisions utilize the most current
and robust data available.
How do our clients use the Refinery Cost & Margin Analytics service?
Refinery Benchmarking Portfolio Improvement Capital Investment
‒‒ Benchmark your refinery ‒‒ Understand risk Evaluation
performance against the and exposure to ‒‒ Calculate CCLP and
competition market volatility gross/net margins of new
‒‒ Review cost & including upcoming capital investments
margin estimates for regulatory changes ‒‒ Understand market
competing assets ‒‒ Determine impact of position of new
‒‒ Identify fluctuations in new projects and refinery relative to
competitive positioning capacity additions existing refineries
resulting from shifts ‒‒ Evaluate profitability ‒‒ Conduct scenario
in energy and market of existing refineries to and sensitivity analysis
conditions identify M&A targets to validate expected
refinery performance
Using an interactive, data-rich Excel model that calculates production costs and margin estimates
by refinery, company or region, you can:
1. Evaluate Long-Term Competitiveness of a Refinery
Whether assessing the position of an existing operating refinery or determining
the viability of a new investment, Refinery Cost and Margin Analytics provides the
full functionality required to effectively perform longer-term strategic analysis and
benchmark the competitive position of refineries. Users can select to view different
regions, refineries, and companies for a complete analysis. Refinery output and
profitability comparison metrics includes gross margin, net margin, operating cost,
cash cost to produce light products, landed crude costs, product value, refinery level
yields and logistics costs.
‒‒ Understand impact of market fluctuations over the next 10 years
‒‒ Leverage the “adjuster” model to generate user-defined crude and product pricing
scenarios to identify exposure
‒‒ Input hypothetical refineries with user customized crude type, capacity, utilization,
operating costs and yields to fully assess the competitive position relative to existing
operating refineries.
2. Calculate Impact of Market Changes on Cost and Margin Performance
With production costs and gross/net margins on a quarterly and annual basis, you can
evaluate and compare refinery performance in the near-term, long-term, as well as
review historical refinery performance. The curves include expected capacity additions
in line with our supply/demand balances, as well as industry rationalization.
‒‒ Shift from annual to quarterly curves to understand impact of near-term market
volatility, regulatory changes, or refinery reationalization
‒‒ Alter crude oil and refined product prices to anticipate the effect of a volatile market
‒‒ Compare multiple time-periods to understand the longevity of a market change and
assess impact of capacity additions
Benchmarking Metrics
Refinery Output Refinery Profitability
‒‒ Refinery level yields ‒‒ Gross margin
‒‒ Operating Costs ‒‒ Net margin
‒‒ Logistics costs ‒‒ Cash cost to produce light products (CCLP)
Coverage of All Key Regions Coverage of All Key Regions
CIS
EUROPE
45 refineries,
NORTH AMERICA 85 refineries,
8,200 mbd
116 refineries, 14,300 mbd
19,700 mbd
NORTH ASIA
(incl. Coastal China)
93 refineries,
MIDDLE EAST
16,900 mbd
39 refineries,
8,800 mbd
LATIN AMERICA SOUTH EAST
ASIA
39 refineries, AFRICA
53 refineries,
7,400 mbd 25 refineries,
10,600 mbd
2,900 mbd
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Fortune Global 500 and the world’s leading financial institutions. Headquartered in London, IHS Markit
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