Pakistan Energy_Storm in oil, petrochem & coal markets, (AKD Daily, Sep 02, 2021)
AKD Dail
Pakistan Energy: Storm in oil, petrochem & coal markets
- The Hurricane Ida, which hit the US gulf coasts on 28th Aug’21 has led to soaring energy and petrochemical prices where oil, coal and PVC prices witnessed an upswing of 5.2/9.0/8.9%WoW. While, oil price rally has witnessed a cool-off, coal has made new highs, touching US$150/MT.
- Even though local cement prices have increased PkR60-70/bag in last 2 months, further price increase cannot be ruled out with utilization standing at 80-90%, however pressure from authorities can result in manufacturers abstaining from passing on the entire increase in cost of production.
- Amongst chemicals sector, 8.3mn MT or 40% of US PVC production witnessed a shutdown last week, driving PVC ethylene margins to US$870/MT (QTD PVC ethylene margins at US$830/MT). If the margins sustain at US$830/MT levels, EPCL could witness another strong quarter in terms of profitability.
- From economy’s vantage, we have projected US$9.1bn CAD for FY22 at a oil price assumption of US$65/bbl, where US$5/bbl change in assumption translates in upside risk of US$1.1bn to our CAD forecast (FYTD oil price average: US$74/bbl).
AKD Research
Engro Polymer & Chemicals Limited is a chlor vinyl chemical company. The principal activity of the Company is to produce and market chlor-vinyl products, which include poly vinyl chloride (PVC), vinyl chloride monomer (VCM), caustic soda, hydrochloric acid and sodium hypochlorite. The Company operates through three segments: poly vinyl chloride (PVC) and allied chemicals, caustic soda and allied chemicals, and power supplies. The poly vinyl chloride (PVC) and allied chemicals segment manufactures and sells PVC and allied chemicals to various industrial customers, including pipe manufacturers, shoe and packaging industry. The caustic soda and allied chemicals segment manufactures and sells caustic soda and allied chemicals to textile and soap industry. The power supplies segment supplies surplus power generated from its power plants to Engro Fertilizers Limited. The Company manufactures and markets over four grades of PVC under the brand name SABZ.
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.