Pakistan OMCs_Throughput showing robustness (AKD Daily, Jul 19, 2021)
AKD Daily
Pakistan OMCs: Throughput showing robustness
- Increase in volumes directly lifted throughput levels, with 2QCY21 retail volumes at 4.53mn tons, up 19%YoY largely due to a 22%YoY increase in MS while sequential increase in retail fuels’ volume stood at 25%.
- Company-wise, HASCOL/SHEL/APL/PSO delivered throughput levels of 327k/693k/ 530k/712k ltrs/outlet, moving -44%/+43%/+2%/+17%YoY and -18%/+13%/+11%/+29%QoQ taking total average industry throughput +14%YoY/+21%QoQ to 698k ltrs/outlet.
- Difference between throughput level of HSD and MS standing 102k ltrs/pump for 2QCY21 against 146k ltrs/pump for 1QCY21 indicate government’s efforts to curb influx of grey product bearing fruit while increase economic activity has played a part as well.
- PSO (TP: PkR305.6/sh, 34% upside) is our top pick where medium term developments include clearance of circular debt and shift in profile of cash flows due to increased share of retail fuels while focus on improving storage infrastructure will result in company sustaining the recently gained market share, moving forward.
AKD Research
Pakistan State Oil is a petroleum group based in Pakistan. Co.'s principal activities are the procurement, storage and marketing of petroleum and related products. Co. also blends and markets various kinds of lubricating oils.
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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