European Refining Financial Risks: Prudence Needed In Determining Future Refining Margins Oct 06
- ID: 1823227
- October 2006
- Region: Europe
- Standard & Poors
How should we set future refining margins for credit analysis purposes- Due to low visibility of the sector's margins, it is beyond doubt that prudence is needed when estimating future margins and taking into account the fundamental positives and negatives. Apart from explaining how Standard & Poor's Ratings Services makes its refining margin assumptions, this article explores accounting and analytical financial issues that are specific to the refining sector. An introduction to this subject is provided in the article titled "Will European Oil Refiners Be Prepared When The Cycle Turns-". A second article, "European Refining Business Risks: What Drives Cycles And Profits-" focuses on the refining sector's business risk outlook, which underpins part of our refining working assumptions set out...
Companies mentioned in this report are:
- BP PLC
- Royal Dutch Shell PLC
- Repsol S.A.
- Eni SpA
- Total S.A.
- MOL Hungarian Oil and Gas PLC
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues. SHOW LESS READ MORE >