Pakistan OMCs: May’19_Seasonality weighs heavy
- As per our estimates, May’19 volumetric offtake clocked in at 1.7mn tonnes, moving +1%MoM/-31%YoY with FO sales continuing to crater, albeit at a lessening pace (+7%MoM/-66%YoY), while MO-GAS/HSD offtake shifted –10/+8%MoM and –5/-21%YoY.
- Cumulative 11MFY19 volumes amounted to 16.9mn tonnes, receding 25%YoY exhausted by weak power demand (cumulative FO sales dip 58%YoY), where monthly average sales have dropped to 248k tons vs. 588k tons during 11MFY18, indicative of subdued monthly deviation.
- In terms of market share, PSO/APL/HASOL are expected to account for market shares of 51/9/7% during May’19 where a comparison with 11MFY19 cumulative shares of 42/10/10% reveals PSO successfully clawing back market share during the outgoing month while HASCOL continues to lose.
- 25%YoY decline in cumulative POL product sales for 11MFY19 underpins a fall in demand for POL products from the industrial segment mainly as influx of grey product and economic slowdown weighs heavily.
- With major shifts underway, we advocate for building positions in PSO, standing to gain from circular debt clearance and near term inroads into the refining space, pushed for by state level (mostly G2G) investments.
Hascol Petroleum Limited is a Pakistan-based company, which is engaged in procurement, storage and marketing of petroleum and related products. The Company is involved in the sale of petroleum products, such as fuel oil, high speed diesel, gasoline, Jet A-1, liquefied petroleum gas (LPG) and lubricants. The Company offers products, such as Tiger Super, Rocket Diesel and Furnace Oil. The Company offers Fuchs Lubricants products, which include corrosion preventives, quenching oils, industrial lubricants, open gear lubricants, greases, automotive oil and metal working fluids. The Company also markets LPG as an automotive fuel through its retail network. The Company is engaged in owning, leasing and renting oil storage facilities, as well as importing petroleum products. The Company has storage facilities at Machike, Shikarpur and Daulatpur. The Company sells its product to dealers, government agencies and autonomous bodies, independent power project and other corporate customers.
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.
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