Pakistan OMCs_Low base continues to amplify growth, (AKD Daily, May 06, 2021)
AKD Daily
Pakistan OMCs: Low base continues to amplify growth
- OMC volumes continued on a growth trajectory with a massive increase of 57%YoY mainly on the back of low base due to stringent COVID-19 related restrictions during SPLY and stand at 1.7mn tons for Apr'21 while sequentially, volumes grew by 13%.
- Overall, OMC sales continued on a strong footing, up 19%YoY for 10MFY21 (up 15%YoY excluding FO) where seasonal uptick in FO demand for power generation over the period drove growth of 49%YoY while MS/HSD followed with growth of 13/21% YoY.
- Market shares remain fluid with PSO/APL/HASCOL/SHEL accounting for market shares of 47/8/2/8% during Apr'21 where a comparison with Apr'20 reveals decreasing share of HASCOL/APL by 6/1ppts while market share of PSO increased by 11ppts.
- PSO (TP: PkR293.1/sh, 32.5% 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
Shell Pakistan is engaged in the formulation, blending, distribution, marketing, import, export, and sale of the following petroleum products: gasoline, kerosine, aviation fuel, diesel oil under the Shell Rimula brand name, and furnace oil. Co. also operates a network of service stations and convenience stores.
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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