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Intermarket Pulse: Pakistan Energy: FO based generation and sales hit new lows in Feb’18

• Power generation in Feb’18 grew 9% YoY to 807MW. Interestingly, the FO based generation made a new low during the month, as visible by 65%YoY/64%MoM decline. For 8MFY18, the total generation clocked in at 8,781MW, up 13% YoY; while FO based generation has declined 20% YoY to 1,880MW.
• HUBC, NPL, and NCPL operated at a load factor of 10-40% in Feb’18, worse than the utilization levels in Nov’17. LPL and PKGP operated at minimal levels (10-12% during the month). KAPCO operated at 43% utilization level where LNG based generation formed 91% of KAPCO’s total dispatches in Feb’18.
• OMC sales during Feb’18 declined 16%/19% YoY/MoM to clock in at 1.45mn tons. Major decline was once again witnessed in FO sales, which slipped 54% YoY, further exacerbated by 3% YoY decline in HSD sales. PSO/SHEL witnessed 3.3/2.9 ppt drop in overall market share in 8M, where beneficiaries included HASCOL (up 3.2 ppt), BYCO (amid rising production levels from larger refinery) and Admore post acquisition by Puma Energy.