Report
Shahrukh Saleem
EUR 9.26 For Business Accounts Only

Pakistan OMCs_Volumes come back from the brink, (AKD Daily, Sep 03, 2020)

AKD Daily

Pakistan OMCs: Volumes come back from the brink

  • Aug’20 kicked off the highest YoY growth for a month since the start of CY17 (21%YoY) where FO took the lead (up 71%YoY), on the back of increased FO-based power generation (captive and grid), while MS/HSD witnessed growth of 10/25%YoY, approaching normalized levels.
  • Overall,  local OMC sales have started FY21 on a strong footing, up 14%YoY for 2MFY21 where HSD leads the pack with a growth of 24%YoY while MS/FO follow with a growth of 12/15% YoY.
  • Market shares remain in flux with PSO/APL/HASCOL/SHEL accounting for market shares of 49/8/5/7% during Aug'20 where a comparison with Aug'19 reveals increasing share of PSO by 3ppt while market shares of APL/SHEL decreased by 3/2ppts.
  • We rate APL (TP: PkR400.2/sh, 10.5% upside) as our preferred play from the sector with high refinery upliftment guarding the company against fluctuating oil prices while PSO’s (TP: PkR214.6/sh, 9.5% upside) worsening balance sheet puts the company in an unfavorable position, barring aggressive policy response.

AKD Research

Underlying
Shell Pakistan Ltd.

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.

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.

Analysts
Shahrukh Saleem

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