HOW Malaysia’s Oil price being calculate??
Well, only our beloved LIM SIN KIAT (RHB INVESTMENT BANK) Use Mogas 92 to calculate the oil price. If he is work for government, all refinering company can bankrup already.
The link https://www.lookp.com/blog/petrol-price-formula
After you understand how RON 95 RON 97 and diesel Price being set by government. Then you have to understand how come Heng Yuan can earn so much even if the Refined Margin already FIXED by government.
Why Heng Yuan can earn super profit, it even better than PETRONM ?
The only reason is inventory control. Heng Yuan have store huge quantity of crude oil and refined product.
Let me do a simple demonstration.
If today Brent oil price is 65 USD per barrel, ,Mogas 95 is 75 USD. Let say, it need 3 week the get the refined product done, then at week 3, the Brent oil price is 70 USD, Mogas 95 is 79 USD.
What price of refined product can sell at week 3 ? 79 USD
What is the cost ? the raw materials cost ( crude oil is 65 USD) not 70 USD !
You may read HRC’s 2016 annual report, they disclose they are using First In First out method to calculate it raw material cost.
That’s is the reason why HRC can earn super profit.
I tell you a ugly truth, If the Brent oil price collapse, it is the time to RUN !!! It is because MOGAS 95 FUTURE will Collapse too. Remember this, there is positive relationship between Brent oil price ( crude oil "raw material") and
You may check on 2017 April to June. that time brent oil price was falling. that time HRC's net profit decrease a lot.
Lastly, if you want blame someone, go blame LIM SIN KIAT, because the market is misleading by Him, By saying that HRC profit will drop because of MOGAS 92 price drop.
You might asking, why share price droping so fast?
I think someone manipulating the share price, because they know Q4 2017 going to have a super profit. so they press the price down, then they can buy more at lower price.
I am not recommending you buy or sell. If you buy, you are buying on your own risk.
http://klse.i3investor.com/blogs/HengYuan_Q4EPS/145819.jsp
