10 | Statistical Review | 2022
bp: The Refining Marker Margin is a simplified regional margin indicator using regional crack spreads [UKPIA: the difference between a representative crude oil price and finished product price before tax, calculated by region] to calculate the margin. It does not include fuel and other variable costs and is only reflective of margins achieved on diesel and petrol. Phillips 66 Ltd.: The Realised Refining Margin is calculated as the difference between sales and operating revenues derived from the sale of petroleum products manufactured at P66 refineries, and the purchase costs of feedstocks used to produce those products. It is adjusted to include proportional shares of joint ventures’ margins and excludes items not representative of underlying operating performance. TotalEnergies: The European Refining Main Indicator (to 2017) represented the margin after variable costs for a hypothetical complex refinery located around Rotterdam that processes a mix of crude oil and other inputs commonly supplied there to produce and market the main refined products at prevailing regional prices. The Variable Cost Margin (from 2018) is the average margin, defined as the difference between sales of refined products and the crude purchases and other variable costs, divided by refinery throughput on variable costs realised by TotalEnergies’ European refining business. Shell: The Refining Market Average Industry Gross Margin is the gross profit margin, including variable costs, for the Rotterdam Complex. Designed as a GAAP-compliant measure.
$/boe European Refining Marker Margins European Refining Marker Margins
10 12 14 16 18
bp
Phillips 66 Ltd
0 2 4 6 8
TotalEnergies
Shell
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Source: BP / Phillips 66 / TotalEnergies / Shell Annual Reports
As demand rebounded following the coronavirus pandemic, crude prices stabilised through 2021 and refining margin indicators for most companies increased, largely returning to levels achieved pre-pandemic. Only one company’s indicator remained depressed in 2021, as output remained low throughout the year. The descriptions of each company’s refinery margin are shown to the right but may not be directly comparable.
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