As revealed by Citi Research, Reliance Industries Ltd. stands to be the biggest beneficiary of rising crude oil imports from Russia. The research firm revealed that Reliance’s superior complexity, high product export ratio, and relatively minor domestic retail operations, with potential added benefits from sourcing discounted crude stand to aid its gross refining margins the most. India’s crude oil imports from Russia increased from 1-2% historically to about 15% of the total crude imports.
Citi assumes a $15-a-barrel discount on roughly 20% of the crude mix could boost RIL’s gross refining margin by almost $3 a barrel. “Every $1-a-barrel increase in Reliance’s GRM increases its consolidated FY23 earnings per share by around 4%.” For India’s three large oil marketing companies—Bharat Petroleum Corp., Hindustan Petroleum Corp. and Indian Oil Corp.—every $1-a-barrel increase in Reliance’s GRM increases its FY23 consolidated earnings per share by around 4%.
For India’s three large oil marketing companies—Bharat Petroleum Corp., Hindustan Petroleum Corp. and Indian Oil Corp.—every $1-a-barrel increase in GRM raises their FY23 EPS by around 16%, 14% and 16%, respectively.
