Report
EUR 9.40 For Business Accounts Only

Pakistan Refinery_Refinery margins continue to surge, (AKD Daily, May 19, 2022)

AKD Daily

Pakistan Refinery: Refinery margins continue to surge

  • Despite Arab Light remaining flat (USD112.98/bbl currently against USD112.82/bbl for last fifteen days), price of diesel and petrol surged by 1.5% and 4.5%, respectively due to continued increase in demand with supply struggling to catch up in the wake of Russia-Ukraine conflict majorly.
  • Local refiners are also reaping benefits of the aforementioned global supply crunch with cracks for diesel/petrol standing at USD38/15/bbl currently against USD36/9/bbl for last fifteen days, an increase of 5.6/58.3% compared to last fifteen days.
  • As per refinery offtake for Apr’22, weighted average margins for NRL/PRL/CNERGY/ATRL increased by 199%/166%/211%/227% on MoM basis and stood at USD21/18/19/15/bbl. NRL earned the highest margin in absolute terms while NRL witnessed the highest MoM increase among local refiners.
  • Moving forward, refinery profitability can be expected to remain elevated in near term as dual impact of high refinery yields and increasing oil prices resulting in inventory gains impart its effect. Moreover, recently some local refiners have moved towards lighter crude in order to improve yields of retails fuels and capitalize on higher cracks. We expect the same moving forward with local refiners working on improving yields of retail fuels and thus elevating profitability.

AKD Research

Underlying
National Refinery Ltd.

National Refinery is a petroleum refining and petrochemical complex engaged in manufacturing and supplying fuel products, lubes, BTX asphalts and specialty products for domestic consumption and export.

Provider
AKD Securities Limited
AKD Securities Limited

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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