mlennyma wrote:Kausha wrote:VituVingiSana wrote:I expect good results for 2014.
See 1H 2014 results and then a drop in imports of oil (fuel) prices in Dec, while the new lower prices announced 14th Dec and then 14 Jan, will boost profits for 2H over 1H.
1H - Good results [including property sales]
2H - Lower fuel import costs + lower interest charges
2015: Now it gets harder coz ERC prices dropped by 9/- in Dec. Another decrease expected in Jan reducing margins.
@VVS property sales in1H? Where did you pick that. Their cashflow statement didnt have it.
this oil companies must calculate so well such that nobody is holding previous stocks of fuel during price announcing dates, I don't know where that remaining expensive stock goes when prices reduce.
FMCs eat the 'loss' ... they have to keep a minimum of 21 days of fuel in stock which hurts. So as much as FMCs try to dispose of their stocks by the 13th, many fail to do so as motorists also wait to fill up on the 14th.
FMCs try to palm/supple the expensive stocks to Stations who in turn would rather be dry [loss of sales] on 13th then be 'wet' with pricey stocks on 14th!
If I were a station owner/lessee, I would try to go dry on the 13th [close pumps, close early] to prevent having expensive stocks carry over. And ask for deliveries after 12am on the 14th at the new lower prices!
Price Controls make for silly or uneconomic decisions on a macro-economic level. On a micro-economic level, what makes sense for the individual station, FMC or motorist is not sensible at the macro level!
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett