Gazprom Neft expects decrease in refining margins in Q4, at $9.7 per barrel in Q3
MOSCOW. Nov 24 (Interfax) - Gazprom Neft decreased refining volumes 1.7% to 32.9 million tonnes over the nine months in 2015, but the bulk of the decline was due to lowered releases of dark petroleum products, the company's financial director, Alexei Yankevich said during a conference call on Monday.
He said that conditions for refining were becoming more favorable than was noted in the third quarter compared to the second.
According to the company's presentation, in the third quarter refining margins were $9.7 per barrel compared to $4.7 per barrel in Q2 and $2.4 in Q1. In the third quarter of 2014 the refining margin was $18.3 per barrel.
Director of the Department of Economy and Investment, Refining Block, and Marketing Vladimir Konstantinov said that the refining margin in Q4, 2015 is expected to be lower than in the third quarter due to the dynamics of seasonal prices and the impact of lag on duties.
"Nevertheless, the conditions allow us to effectively work on the market," he said, despite the falling oil prices.
Konstantinov said that at the end of the first nine months this year a decrease in refining has been noticed at the Moscow refinery, but this is a seasonal issue. "As a whole for the year the amount will be 1.5% more than 2014, at the Moscow refinery , due do the low base in 2014," he said.
At the Omsk refinery the situation is different, he said. "There will probably be a slight decrease compared to 2014, since major repair works on a catalytic unit started in the fourth quarter," he said.
Konstantinov also said that due to the economic conditions in the first and second quarters of 2015, there was a decrease in refining at the Mozyr Oil Refinery, part of Slavneft , in Belarus.
"The rejuvenation of the petroleum market in Serbia has allowed for an increase in NIS production," he said.