Refinery Utilization
The percentage of a refinery's crude-processing capacity that was actually used over the period -- barrels processed divided by nameplate capacity. It is the throughput-efficiency metric for a refiner, and it swings with both demand and maintenance: utilization drops during scheduled turnarounds (major maintenance) and unplanned outages, and rises when margins are strong enough to run flat out. Because a refinery has high fixed costs, high utilization spreads those costs over more barrels and is essential to profitability; a sustained drop in industry-wide utilization can also tighten product supply and lift margins for the refiners still running.
Related terms
Absorption Rate · AFFO per Share · Allowed Return on Equity · Alternative Investments · Anchor Tenant · Assets Under Management
Open this term in the app → — no account needed; browse the full glossary while you research.