Light oil yield, overall product yield
Thread Content
The light oil yield and overall product yield are comprehensive indicators used to measure a refining company’s ability to produce target products (gasoline and diesel) as well as the efficiency of plant operation. The light oil yield is expressed as the ratio of the output of gasoline and diesel to the amount of purchased raw materials, and it indicates a company’s capacity to produce gasoline and diesel. The comprehensive product ratio is expressed as the proportion of sellable products produced by a company to the amount of purchased raw materials; it indicates the efficiency of the company’s production facilities. A higher value suggests that the company does a good job in saving energy and reducing consumption, thereby having strong profitability. During actual calculation and comparison, the above two indicators experience significant fluctuations due to changes in the operation status of a company’s facilities and imbalances in the equipment associated with those facilities, and thus cannot accurately reflect the actual operating conditions of the facilities. If a large amount of crude oil is transferred to inventory, the quantity of products will decrease and the indicators will fall ； When the amount of purchased raw materials is low, the indicator for consuming inventory actually increases. How to avoid major changes?
The indicator of \"semi-finished product inventory change rate\" can be added to reflect fluctuations in the light oil yield and overall product ratio from one period to the next; the specific calculation method can be found in the explanations of Sinopec’s statistical indicators.
Thank you for the input from the second floor. Changes in raw material inventory have a significant impact on companies experiencing operational imbalances. Should the amount of purchased raw materials in the denominator of the formula be replaced with the amount of such raw materials that are processed, while also taking into account the impact of inventory of raw materials that are reprocessed?
1. The amount of processed purchased raw materials (crude oil, fuel oil, catalytic materials, liquid hydrocarbons, coker light oil, vacuum residue, etc.) = Amount of purchased raw materials – (Ending raw material inventory – Starting raw material inventory). Product output = Sales volume of products + (Ending product inventory – Starting product inventory). Comprehensive commodity ratio = Product output / Amount of processed purchased raw materials. 2. Comprehensive commodity ratio = Sum of product outputs from various units / Sum of processing volumes of various units. Please discuss whether these two methods are feasible Which one is more reasonable?
As local refineries, in order to adapt to market changes and achieve maximum efficiency, they can adjust their production plans quite flexibly; however, mismatches between different units are also quite evident: there are significant fluctuations in either the consumption of inventory or the levels of inventory on hand. At the same time, it is very flexible to purchase raw materials for secondary processing, and due to the storage constraints in the tank areas, it is difficult to distinguish between materials purchased externally and those produced internally. This creates significant difficulties in calculating relevant indicators. Moreover, because the data vary greatly, comparisons over different periods can lead to misunderstandings regarding the operational efficiency of the facility.
I completely agree with the view from the 5th floor; it’s really troublesome at work: the indicators change too much, and if the comparison doesn’t meet the leader’s expectations, one ends up getting reprimanded. To reduce fluctuations in the indicators and reflect the actual operating conditions of the facility, I recommend using Method 1 as follows: Purchased raw materials refer to all raw materials acquired by the enterprise from outside, such as crude oil, catalytic materials, liquid hydrocarbons, and vacuum residue. Products represent the final goods that can be sold by the enterprise. The amount of processing equals the quantity of purchased raw materials minus (ending raw material inventory minus beginning raw material inventory). Product output equals the amount of products sold plus (ending product inventory minus beginning product inventory). The comprehensive commodity ratio is calculated as product output divided by the amount of processed purchased raw materials. For oil refining enterprises, especially those with mismatched facility capacities, changes in intermediate product inventory have a significant impact on the comprehensive commodity ratio. The aforementioned formula takes the entire enterprise into account, using changes in the inventory levels of intermediate products to influence the amount of processing done. This helps to reduce the impact of fluctuations in the load on the deep-processing equipment on the overall product quality. As a result, the data can accurately reflect the operational performance of the enterprise’s equipment, preventing incorrect assessments of its operation; moreover, such metrics will not put management in an awkward position.