RE: Ingrid Knutsen17 Aug 2020 15:58
Hi L3,
I’ve discussed Kraken premium with IR before and this is reply I got:
While pricing has remained robust for Kraken, thanks to the fact we are selling into the fuel oil market (with Kraken an important element in the blending of low sulphur fuel oil) rather than the traditional refining market, pricing still remains volatile. On some cargoes we may achieve premiums (and this level of premium varies), on others we may achieve similar to traditional Brent pricing, while some may well still be at a small discount to Brent. It would be disingenuous to only publicise the premiums - this could result in inaccurate forecasts and estimations of EnQuest performance, meaning we miss consensus targets, with the consequent negative impact on the share price at that time.