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IntroductionOil Refinery Industry holds immense importance for all the oilproducing countries. If we focus on the global trend of this OilRefinery Industry then we will see that this industry has experienced a lot of ups and downs over the decades. In the period from 1970s to 1990s considerable amount of investment was made in the Oil Refinery Industry. But because of the oil shocks of 1973-74 and 1979-80 and because of the Asian Financial Crisis, the market demand was quite low.This resulted in surplus refining capacity of global Oil Refinery Industry. But, the present scenario is different. As the Demand for Refined Petroleum and other Refined Products is increasing, Surplus Refining Capacity of the industry is diminishing very fast. So, in todays world, the Oil Refinery Industry has to concentrate on additional capacity building so that the Growing Market Demand can be met accordingly. This additional capacity building naturally requires Heavy Investment. This is where the problem lies as the much needed investment in the Oil Refinery Industry is not attaining its required level because of the uncertainty of the investment returns. This is because, returns to the investment in Oil Refinery Industry were very low in the past three decades. But, the good news is that in the recent years the rates of return are improving. At present, the average margin per barrel has reached a level which is enough to cover the Capital Cost. But many companies are not willing to invest in new oilrefinery plants may be because of the factor that any Oil Refinery Plant requires at least five years to be established and this long period increases the risk of investing. The investor companies fear that the future margins may not be enough to cover their total investment cost. According to a survey, World Crude Oil Refining Capacity was 83.1 million barrels per day. But, to keep pace with rising demand this capacity has to reach the level of 93 million barrels per day by 2010. This means the global Oil Refinery Industry has to grow at an average Growth Rate of 1.8% per year. This will be possible only if the Oil Refinery Industry becomes successful to attract sufficient volume of investment from different investors.
LIST OF COMPANIES
1 Bharat Petroleum Corporation Limited (BPCL) Large, state-owned petroleum company headquartered in Mumbai; figures in the Fortune 500 list of companies; activities include refining, retailing (petrol pumps etc), LPG, lubricants, industrial fuels & petrochemicals, aviation fuel etc 2 Hindustan Petroleum Corporation Ltd (HPCL) State-owned company which is the second-largest integrated oil refining & marketing enterprise in India; corporate office is in Mumbai; activities: LPG, international operations, bulk fuel & specialities, lubricants, retail, aviation etc 3 Indian Oil Corporation (IndianOil) State-owned oil company that owns 10 of India's 18 refineries and owns & operates the country's largest network of crude & product pipelines; corporate office is in New Delhi; IndianOil is India's largest company by sales 4 Oil & Natural Gas Corporation Ltd (ONGC) State-owned oil & gas enterprise and one of the largest companies in India; head office is in Dehradun (Uttarakhand); only fully integrated petroleum company in India (exploration, production, refining etc) 5 Reliance Industries Limited (RIL) Fortune 500 flagship company of the Reliance Group; the group's activities span exploration & production of oil & gas, petroleum refining & marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals) & textiles; based in Mumbai 6 Chennai Petroleum Corporation Limited (CPCL) Public sector company that has two refineries with a combined refining capacity of 10.5 million tonnes per annum; IndianOil has a 51.88 per cent stake in the company, while National Iranian Oil Company (NIOC) has 15.40 per cent 7 Directorate General of Hydrocarbons Government body under the Ministry of Petroleum and Natural Gas based in New Delhi; objective: to promote sound management of Indian petroleum and natural gas resources; site has information on activities, environment & safety etc
8 Mangalore Refinery & Petrochemicals Ltd (MRPL) Oil refinery that can process 9.69 million metric tonnes per annum in Mangalore, Karnataka; subsidiary of ONGC 9 Oil India Limited (OIL) Second largest national upstream petroleum company, engaged in the exploration, development, & production of crude oil & natural gas, transportation of crude oil, production of LPG etc; a wholly-owned Government of India enterprise 10 Essar Group Business group with interests in steel, oil & gas, power, telecom & BPO, shipping & construction; based in Ahmedabad, Gujarat 11 Cairn Energy PLC Independent, public oil & gas exploration and production company based in Edinburgh, Scotland; holds material exploration & production positions in both west and east India and in Bangladesh 12 Essar Oil Ltd (EOL) Integrated oil & gas company whose activities include exploration & production, refining & retailing; based in Mumbai 13 Gujarat State Petroleum Corporation Group (GSPC) Public-sector oil & gas group based in Gandhinagar, Gujarat; activities include exploration & production, gas pipelines, electricity generation, integrated fuel management & communications etc 14 Hindustan Oil Exploration Company Limited (HOEC) Private-sector oil & gas exploration company based in Vadodara, Gujarat; core shareholders include HDFC, IL&FS & Burren Energy, UK; has projects in the Cambay, Cauvery & Assam regions Petroleum 15 Bharat Oman Refineries Limited (BORL)
Joint venture company of Bharat Petroleum Corporation Ltd (BPCL) & Oman Oil Company Ltd (OOCL), to setup a 6 MMTPA refinery at Bina in Madhya Pradesh; produces Euro-3/ Euro-4 quality gasoline & diesel products 16 Assam Company Ltd Group of firms involved in tea plantation, oil & gas exploration, production & supply, & road transportation through Assam Railway Trading Co, River Steam & Navigating Co, Assam Tea Co Ltd etc; located in Dibrugarh; part of Duncan Macneill Group 17 Selan Exploration Technology Ltd Company in Gurgaon engaged in oil exploration & production; was among the first private sector companies to have obtained rights to develop three discovered oilfields in Gujarat, namely Bakrol, Indrora and Lohar 18 Gujarat State Petroleum Corporation Ltd (GSPC) Large-scale energy organisation, involved in a wide range of hydrocarbon activities; owned by the state government & located in Gandhinagar; activities: oil & gas exploration, production & distribution 19 Ministry of Petroleum & Natural Gas Ministry entrusted with the responsibility of exploration & production of oil and natural gas, their refining, distribution & marketing, import, export etc; site has information on laws, rules & regulations etc 20 ONGC Wholly owned subsidiary of the Oil and Natural Gas Corporation Limited & the second largest E&P company in India by reserves; designated as the Indian nodal agency for overseas petroleum business; headquartered in New Delhi 21 Tata Petrodyne Limited (TPL) Oil & gas exploration company based in Mumbai; part of the Tata Group Company Market P/E P/BV EV/EBIDTA ROE ROCE D/E
ONGC Cairn India Oil India Hind.Oil Explor. Aban Offshore Shiv-Vani OilGas Jindal Drilling Selan Expl. Tech Dolphin Offshore Interlink Petro Asian Oilfield Alphageo (India) Duke Offshore Exxoteq Corpn. Geologging Inds
Cap (TTM) (TTM) (Rs. in Cr.) (x) (x) 253,327.76 12.72 2.90 69,467.63 0.00 2.17 31,852.41 11.56 2.31 2,960.42 2,930.38 1,511.10 1,146.20 605.44 262.87 123.98 84.72 63.25 5.81 2.43 1.26 38.82 11.73 37.02 10.98 20.23 20.63 0.00 0.00 0.00 0.00 0.00 6.29 2.69 1.59 1.63 3.26 4.22 1.28 3.24 0.86 1.00 2.29 0.28 1.00
(x)
(%)
(%)
(x)
25.4 0.20 0.0 0.02 33.7 0.00 5.0 0.36 16.1 1.82 13.8 1.86 38.2 0.09 32.9 0.16 30.8 0.78 -0.1 0.02 -0.3 0.00 24.9 0.12 8.0 0.23 0.0 6.17 7.8 2.92
9.23 18.3 9.02 11.0 7.83 27.1 12.30 23.6 7.71 31.1 0.00 25.35 -0.1 -1.3
Edible Oil Sector P/E Ratio P/E Ratio is a valuation ratio of a company's current share price compared to its per-share earnings. This is a list of stocks arranged in descending order of their P/E Ratio. You can also view P/E Ratios of the top 50 stocks of a sector. This list gives you Company Name (stock), Current Market Price of the stocks, Change, % Change in the price as compared to previous close and the P/E Ratio of the stocks. Company Sanwaria Agro CMP Change 271.00 10.55 Chg(%) PE 4.1 76.83
Agro Tech Foods. Ruchi Infrastr. KSE Gokul Refoils Ruchi Soya Inds. Anik Industries AVT Natural Prod Raj Oil Mills K S Oils IVP Guj. Ambuja Exp Murli Industries
369.90 26.65 167.40 107.00 106.40 47.65 119.90 35.65 36.70 44.95 32.85 38.55
2.95 1.05 -0.60 3.05 -1.25 1.50 1.30 0.55 1.05 0.95 -0.10 0.50
0.8 4.1 [0.4] 2.9 [1.2] 3.3 1.1 1.6 2.9 2.2 [0.3] 1.3
46.04 34.59 23.56 23.05 18.34 12.78 11.20 8.67 7.55 6.00 5.25 0.00
BETA VALUE OF DIFFERENT COMPANIESONGC-0.89 BPCL-.43 RELIANCE-1.23 CARRIN-1.1 ESSAR-1.7 HPCL-.81 TPL-1.1 ASSAM COMPANY LIMITED-1.1 CPCL-1.0 CHENNAI PETRO-1.1 MRPL-1.1
Factors That Affect Oil Price Oil powers the world's developed nations and their economies. Many factors and events can influence the price of oil, such as international political unrest or natural disasters. Other oil price influencers, like drilling bans, have nothing to do with the availability of the commodity itself, but rather the international oil market's interpretation of their potential long-term economic effects.
Supply No one can state with certainty how much undiscovered oil exists on the planet. When a new major oil discovery is announced, it forecasts an increased supply. Any time supples of commodity rise and demand remains relatively flat, prices decline. Conversely, if international oil supplies decline due to production cuts while oil demand remains flat, prices rise. Demand During periods of robust global economic activity, the demand for oil rises. This is particularly true if no new oil discovies are announced that would help offset that increased demand. In emerging markets such as China and India, their increased wealth and the corresponding growth of their domestic automobile fleets put increased pressure on oil prices. A report by Congressional Research Service states that as China and India will import larger amounts of oil as their economies grow, increasing worldwide demand.
Restrictive Legislation If a nation announces that it is curtailing or banning oil exploration in an area known to have large confirmed oil deposits, such as the Gulf of Mexico, commodity markets price the "loss" of this potential new crude oil production into current oil prices. According to a report by the U.S. Energy Information Administration, the Gulf of Mexico accounts for 30 percent of domestic oil production. Legislation curtailing Gulf oil production would impact future oil supplies and drive oil prices higher. Political Unrest If an oil-rich part of the world such as the Middle East experiences political upheaval, oil futures markets react by bidding up the price of oil futures contracts to ensure that supplies are still available to the highest bidder. In this example, the perceived loss of oil is enough to drive oil prices higher, even if oil production remains constant. Declining Production During the first half of the 20th century, the United States was the world's leading oil producer and exporter. As domestic production of oil has begun to fall, the United States must import increasingly larger amounts of oil to fuel our economy. This places additional pressure on supplies and generally leads to higher oil prices. Natural Disasters In 2005, when Hurricane Katrina struck the oil platforms in the Gulf of Mexico, there was an immediate spike in the world price for oil. When these oil supplies were temporarily taken off the market from damage by Katrina, oil prices began to increase rapidly.
Speculative Buying Oil prices are also influenced through the speculative buying of commodities traders. In 2008, the price of oil reached $140 per barrel. Conjecture centered on the idea that speculators were bidding up oil prices and creating a "bubble", an unsustainable price level. By late 2009, oil prices had fallen by more than 70 percent into the $30 per barrel range because the demand was not present to support the inflated price level oil had attained.
CONCLUSIONAnalyse the Beta value, PE ratio, Past Share Price Before Investing. Also study completely the prospectus and the balance sheet of the company before investment.