U.S. REFINING MARGINS ABOUT EVEN WITH 1990

U.S. refining profit margins in the first 10 months of 1991 compared favorably with last year's record setting pace, says Wright Killen & Co., Houston. Through the first 10 months of 1991, consolidated refinery profit margins on the U.S. East Coast averaged $2.89/bbl, tops in the nation. Gulf Coast refiners posted the year's smallest 10 month average margin, $1.92/bbl. In 1990, major U.S. refining regions achieved the largest profit margins since Wright Killen began tracking the

Dec. 23, 1991

2 min read

U.S. refining profit margins in the first 10 months of 1991 compared favorably with last year's record setting pace, says Wright Killen & Co., Houston.

Through the first 10 months of 1991, consolidated refinery profit margins on the U.S. East Coast averaged $2.89/bbl, tops in the nation. Gulf Coast refiners posted the year's smallest 10 month average margin, $1.92/bbl.

In 1990, major U.S. refining regions achieved the largest profit margins since Wright Killen began tracking the indicators of performance in 1981.

West Coast refiners led the way, with an average consolidated profit margin of $3.64/bbl. Gulf Coast refining margins last year had the smallest average, $1.84/bbl.

Through the first 10 months of 1991, the average refining profit margin on the West Coast was $2.60/bbl. Wright Killen Pres. Calvin Cobb attributes the relatively poor showing this year by West Coast refiners to declining consumer demand and a surplus of products.

Wright Killen also says 1991 monthly profit margins show less variability than during last year, reflecting more stable prices on U.S. crude oil markets.

Wright Killen tracks refinery profit margins in four U.S. regions: Gulf Coast, Midwest, East Coast, and West Coast. The company's consolidated refinery margins are cash margins before depreciation, taxes, and financial charges.

During 1986-89, East Coast refiners posted average annual profit margins of $1.51/bbl, Midwest refiners $1.25/bbl, Gulf Coast refiners 53/bbl, and West Coast refiners $2.13/bbl.

Here is a summary Wright Killen's regional U.S. refining profit margins:

East Coast refiners in 1990 posted a year long average of $2.52/bbl and $2.80/bbl in the year's first 10 months.
Midwest refiners in 1990 had a year long average of $2.09/bbl and 10 month averages of $2.61/bbl in 1990 and $1.99/bbl in 1991.
Gulf Coast refiners, in addition to posting the smallest year long 1990 and 10 month 1991 averages, had a 10 month 1990 average margin of $2.21/bbl.
West Coast refiners in the first 10 months of 1990 reported a consolidated margin of $3.91/bbl.

Wright Killen says variation of regional monthly consolidated profit margins during 1991 are smaller across the board than last year.

Respective 10 month 1990 and 10 month 1991 variabilities are $1.98/bbl and $1.34/bbl on the East Coast, $1.99/bbl and $1.38/bbl in the Midwest, $1.67/bbl and 77/bbl on the Gulf Coast, and $2.61/bbl and $1.43/bbl on the West Coast.