Base Oil Prices on the Commodity Exchange: SHESPA and BEHRAN Trades
Fundai Fundamental Analysis Team · · 7 min read
A step-by-step guide to reviewing SN500 base oil trades and linking the discovered prices to the sales reports of SHESPA and BEHRAN on Fundai.
An review of base oil prices on the commodity exchange is a tool for tracking trading in listed lubricant companies. For example, on the Iran Mercantile Exchange board, based on Fundai data, the discovered price of SN500 base oil from Naft Sepahan changed from 1,853,734 thousand rials per ton on 16 Shahrivar 1405 to 2,267,569 thousand rials on 6 Mehr 1405.
What is SN500 base oil, and what place does it hold in lubricant companies' product mix?
SN500 base oil is one of the base oil grades that Naft Sepahan and Naft Behran offer on the Iran Commodity Exchange; Naft Behran also offers the SN350 grade separately, and each grade has its own base price and its own discovered price.
According to the companies' monthly activity reports on Codal, the share of revenue from base oil is not the same across lubricant companies. For example, in the monthly activity report for the period ending 31 Shahrivar 1405, base oil sales at Naft Sepahan were 8,089.8 billion tomans out of the company's total sales of 13,306.5 billion tomans, whereas at Naft Behran this product made up 1,422.4 billion tomans of total sales of 8,091.3 billion tomans in the same month.
| Company | Base oil sales, Mordad 1405 | Base oil sales, Shahrivar 1405 | Total sales, Shahrivar 1405 | Base oil share of Shahrivar sales |
|---|---|---|---|---|
| Naft Sepahan (SHASPA) | 3,280.4 | 8,089.8 | 13,306.5 | 60.8% |
| Naft Behran (BEHRAN) | 322.1 | 1,422.4 | 8,091.3 | 17.6% |
In the monthly sales data for these periods, the figures are recorded under the general heading "base oil". To see the exact price and trading details of specific grades such as SN500 or SN350, reviewing Commodity Exchange trades provides more specific information.
How is base oil traded on the Iran Commodity Exchange?
For every base oil offering on the Iran Commodity Exchange, the offered volume, registered demand, base price and discovered price are recorded.
In the Shahrivar and Mehr 1405 trades of both companies, registered demand exceeded the offered volume and the discovered price came in above the base price. At Fundai, we display this same data for every trade.
Go to the symbol's commodity exchange trading section Visit the commodity exchange page of the symbol you are interested in on Fundai to display the history of its trades.
Review the product's trading row Select the row for SN500 base oil or other grades on the trade date and read the supply, demand and price values.
Gauge buyer competition Divide the difference between the discovered price and the base price by the base price and multiply the result by 100 to determine the percentage of buyer competition in the auction.
What Is the Price of Base Oil on the Commodity Exchange? A Review of Trades in Shahrivar and Mehr 1405
According to official data from the Iran Mercantile Exchange, the discovered price of Naft Sepahan's SN500 base oil on 6 Mehr 1405 was 2,267,569 thousand rials per tonne.
According to the statistics recorded in the commodity exchange trading section of Fundai, the price of SN500 base oil on the exchange for the symbol SHESEPA trended upward during Shahrivar and early Mehr. At the auction on 16 Shahrivar 1405, Sepahan SN500 base oil was offered at a base price of 1,455,615 thousand rials and traded at a discovered price of 1,853,734 thousand rials. In this period, the supply per session was 1,334 tonnes, and demand on some days reached 3,105 tonnes.
Trades in the symbol BEHRAN in Shahrivar also showed an increase in the discovered price. According to trading statistics, SN500 base oil from Naft Behran traded on 16 Shahrivar 1405 at a discovered price of 1,778,130 thousand rials per tonne, whereas the discovered price of this product on 12 Mordad 1405 was 1,329,860 thousand rials per tonne. In addition, the company's SN350 base oil reached a discovered price of 2,100,289 thousand rials per tonne on 30 Shahrivar 1405.
| Symbol | Product | Trade Date | Base Price | Discovered Price | Supply (tonnes) | Demand (tonnes) |
|---|---|---|---|---|---|---|
| SHESEPA | SN500 base oil | 1405/06/16 | 1,455,615 | 1,853,734 | 1,334 | 2,530 |
| SHESEPA | SN500 base oil | 1405/06/23 | 1,511,889 | 2,106,611 | 1,334 | 3,105 |
| SHESEPA | SN500 base oil | 1405/06/30 | 1,578,377 | 2,218,303 | 1,334 | 2,507 |
| SHESEPA | SN500 base oil | 1405/07/06 | 1,615,574 | 2,267,569 | 1,334 | 1,633 |
| BEHRAN | SN500 base oil | 1405/05/12 | 1,231,868 | 1,329,860 | 253 | 529 |
| BEHRAN | SN500 base oil | 1405/06/16 | 1,455,615 | 1,778,130 | 253 | 690 |
| BEHRAN | SN350 base oil | 1405/06/30 | 1,578,377 | 2,100,289 | 253 | 437 |
Discovered price premium over the base price (thousand rials per tonne)
Recorded buyer competition percentage
How should Commodity Exchange figures be reviewed alongside the monthly activity reports of SHASPA and BEHRAN?
Commodity Exchange data show the daily rate of each auction, whereas the monthly Codal report reflects the total realized sales performance for a month.
In analyzing performance, it should be borne in mind that the physical delivery time of cargoes purchased on the Commodity Exchange may differ from the monthly calendar period. Therefore, any change in total monthly sales cannot be attributed directly to fluctuations in the rate of a specific grade; rather, Commodity Exchange figures should be read alongside the monthly report.
| Fiscal year ending | Annual operating revenue (billion tomans) |
|---|---|
| 1400/12 | 13,197.7 |
| 1401/12 | 18,354.5 |
| 1402/12 | 23,258.1 |
| 1403/12 | 30,248.6 |
| 1404/12 | 38,633.4 |
How are the earnings per share and financial ratios of Naft Behran and Naft Sepahan assessed?
According to the audited separate income statement for the fiscal year ended 29 Esfand 1404 on Codal, the net earnings per share of Naft Behran is 4,272 rials.
In the same fiscal year, the net earnings per share of Naft Sepahan was recorded at 3,026 rials. Total annual net profit in the separate income statement was reported at 7,687.9 billion tomans for Naft Behran and 16,944.5 billion tomans for Naft Sepahan.
| Line item (billion tomans) | Fiscal year 1403/12 | Fiscal year 1404/12 |
|---|---|---|
| Operating revenues | 29,092.1 | 44,617.5 |
| Cost of operating revenues | -22,193.5 | -28,097.6 |
| Gross profit (loss) | 6,898.6 | 16,519.8 |
| Selling, general and administrative expenses | -2,398.0 | -3,257.3 |
| Other income | 101.3 | 837.0 |
| Other expenses | -43.9 | -1,516.9 |
| Operating profit (loss) | 4,558.0 | 12,582.6 |
| Finance costs | -1,036.2 | -989.9 |
| Other non-operating income and expenses | -253.0 | -904.0 |
| Profit (loss) from continuing operations before tax | 3,268.8 | 10,688.7 |
| Current year | -576.4 | -3,000.8 |
| Net profit (loss) from continuing operations | 2,676.7 | 7,687.9 |
| Net profit (loss) | 2,676.7 | 7,687.9 |
| Capital | 1,800.0 | 1,800.0 |
At Fundai, trailing twelve-month earnings per share (EPS TTM) is calculated as the sum of net profit over the last four quarters divided by the current number of shares, and the trailing twelve-month price-to-earnings ratio (P/E TTM) is the day's closing price divided by this same trailing twelve-month EPS. The basis for calculating EPS TTM differs from the annual EPS figures above, and those annual figures are not the denominator of P/E TTM. On 12 Mehr 1405, the P/E TTM ratio on the Naft Behran financial ratios page was 10.07 times and on the Naft Sepahan financial ratios page it was 6.63 times; on the same day, the price-to-earnings ratio was recorded at 6.48 times for the petroleum products industry as a whole and 8.80 times for the market.
Based on Fundai data for 12 Mehr 1405, Naft Behran's TTM gross profit margin was recorded at 35.3 percent and its TTM net profit margin at 17.6 percent. For Naft Sepahan, the TTM gross profit margin was 35.1 percent and the TTM net profit margin was 41.2 percent. At the level of the whole industry, the ratio of total TTM gross profit to total TTM operating revenue is 15.9 percent, and the ratio of total TTM net profit to total TTM operating revenue is 13.1 percent. Please note that past performance does not guarantee that these figures will be realized in the future.
To find similar companies, in the Filters section, first select "Petroleum products, coke and nuclear fuel" in the general industry filters. Then create a condition of the "Monthly report" type: the parameter "Sales amount", comparison type "Relative" with base "Previous month", and operator "Greater than" with a value of 0. The result is the companies in this industry whose monthly sales amount has grown compared with the previous month.
What is SN500 base oil?
It is one of the base oil grades that Shaspa and Behran offer on the Commodity Exchange. Each grade, such as SN350, which Behran offers separately, has its own base price and discovered price.
What is the price of base oil on the Commodity Exchange?
Based on Fundai data from the Commodity Exchange, in the trade of 6 Mehr 1405 the discovered price of Naft Sepahan's SN500 base oil was recorded at 2,267,569 thousand rials per ton, and on 16 Shahrivar 1405 the price for Naft Behran was recorded at 1,778,130 thousand rials per ton.
How is base oil traded on the Commodity Exchange?
For each offering, the offered volume, registered demand, base price and discovered price are recorded. In the Shaspa and Behran trades of Shahrivar and Mehr 1405, demand exceeded supply and the discovered price was above the base price.
What is Naft Behran's earnings per share?
According to the audited separate income statement for the fiscal year ended 29 Esfand 1404 on Codal, Naft Behran's net earnings per share is 4,272 rials.
#Iran Mercantile Exchange #Fundamental Analysis #Base Oil #Lubricant Companies