Pakistan OMCs_POL sales down 23%YoY for 1QFY23, (AKD Daily, Oct 05, 2022)
POL sales down 23%YoY for 1QFY23
POL offtakes settled at 4.5mn tons during 1QFY23, down 23%YoY, compared to 5.8mn tons
during 1QFY22. More specifically, RFO/HSD volumes remained depressed during the outgoing
quarter, down 25% amid lower industrial activity (July LSM down 16.5%MoM) and
power generation.
Company wise, major players in the sector, PSO/APL/SHEL/GOPL, delivered throughput
levels of 806k/141k/114k/78k, taking total market share to stand at 53%/9%/7%/5% for
Sep’22, respectively.
Govt’ is likely to take a major hit in non-tax revenue department, especially the petroleum
development levy (PDL) front as retail offtakes have continued to decline in 1QFY23, down
25%YoY.
We expect OMC sales to be severely impacted by the said floods as overall economic activity
in the affected regions are to be hit in the near term. Although, come winter, we may
see a return of RFO based generation amidst consistent gas supply shortfalls, as the LNG
procurement issue still remains. Currently, the country’s importers (PSO & PLL) are only
able to secure 7-8 cargoes (850-900mmcfd) vs monthly demand of 12 cargoes
(1230mmcfd).
APL (TP: PkR370/sh) is our top pick from the sector, with the company being a perfect mix
of capital upside and dividend yield.
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.