Pakistan Fertilizer - Gas price hike What’s in it for the fertilizer sector, (AKD Daily, Oct 05, 2023)
AKD Daily
Pakistan Fertilizer - Gas price hike What’s in it for the fertilizer sector
- ECC tabled a meeting on the 3rd of Oct, 2023 to discuss various items of interest, of which gas prices, in particular to Fertilizer companies on the MARI distribution network remained on the agenda. To recall, OGRA notified changes in gas prices in Feb’23m where SNGP and SSGC network fertilizer companies faced a hike in gas prices (Feed: ↑~69% and Fuel: ↑~47%) however, MARI prices remained unchanged (@PkR302/mmbtu)
- The move was to rationalize MARI network gas prices to their wellhead prices, causing receivables to stack up on MARI’s balance sheet and, we opine that there is the idea of levelling the playing field for the entire fertilizer sector to rationalize product prices (esp. urea)
- Overall, we expect FFC to face the brunt of any hikes in gas prices since FFC enjoys the lowest cost of gas currently, followed by FATIMA. EFERT remains immune to around 50% increase in gas price since they are already billed at the SNGP rate
- Holistically, as per IMF’s conditions, Pakistan is to increase total gas prices by around 50% in order to curb the growing circular debt
AKD Research
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.