Interesting statement in the story about how diesel is more profitable than RUG.
http://www.bloomberg.com/apps/news?pid=20602099&sid=akch72EY4mz8&refer=energy
By Adam L. Freeman and Anthony DiPaola
June 24 (Bloomberg) -- Saras SpA, owner of the Mediterranean region's largest refinery, will boost investment to 1.23 billion euros ($1.91 billion) to increase production and marketing of diesel, to help benefit from rising demand.
Saras will raise diesel output by 365,000 tons a year between 2008 and 2011 at its Sarroch refinery on the Italian island of Sardinia, the Milan-based company said in stock- exchange statement. Saras will spend a total of 1.08 billion euros in its refining business. 690 million euros of the planned investments will be for ``growth projects'' in refining and marketing, Saras said.
Saras is investing in its Sarroch facility in Sardinia to boost production of diesel, which is more profitable than gasoline. Demand for diesel is also growing faster than demand for gasoline. First-quarter margin, the profit Saras makes from turning crude into products like diesel, rose to about $7.60 a barrel from $6.70 a barrel a year earlier.
The company has forecast a gross margin increase of $240 million from 2012.
http://www.bloomberg.com/apps/news?pid=20602099&sid=akch72EY4mz8&refer=energy
By Adam L. Freeman and Anthony DiPaola
June 24 (Bloomberg) -- Saras SpA, owner of the Mediterranean region's largest refinery, will boost investment to 1.23 billion euros ($1.91 billion) to increase production and marketing of diesel, to help benefit from rising demand.
Saras will raise diesel output by 365,000 tons a year between 2008 and 2011 at its Sarroch refinery on the Italian island of Sardinia, the Milan-based company said in stock- exchange statement. Saras will spend a total of 1.08 billion euros in its refining business. 690 million euros of the planned investments will be for ``growth projects'' in refining and marketing, Saras said.
Saras is investing in its Sarroch facility in Sardinia to boost production of diesel, which is more profitable than gasoline. Demand for diesel is also growing faster than demand for gasoline. First-quarter margin, the profit Saras makes from turning crude into products like diesel, rose to about $7.60 a barrel from $6.70 a barrel a year earlier.
The company has forecast a gross margin increase of $240 million from 2012.