Golden period for OMCs: Will it go on, or come to an end?
The last three years has been a golden period for public sector oil marketing companies (OMCs). 8The fall in crude prices led to a complete change in the fortunes of the sector, driven by: -- Strong global GRMs (robust demand, lower product prices, delay in new refineries) -- Petrochemical margins are above their 5-year average -- Higher profits in marketing, owing to strong volumes and margins -- Low oil subsidy, as interest cost fell 50-60% in the last three years -- Inventory gains. 8These have led OMCs to report the highest-ever EBITDA and PAT in FY17. 8The OMCs’ story is intact till crude is below the USD 65/bbl but not beyond that Click on Reports for more.