EUR 4.64 For Business Accounts Only

Pakistan OMCs: 8M sales indicate strong demand; market shares firming up

• OMC industry sales growth in 8MFY17 remained strong led by robust demand in all major products. Sales of the major products is growing phenomenally despite multiple price increases by GoP – furnace oil (FO; up 10% YoY), HSD (up 15% YoY) and Mogas (up 20% YoY), during the period.

• PSO continues to lag in the Mogas market losing its market share to APL and HASCOL while overall performance remains robust with 16/15% YoY growth in Furnace Oil/HSD market. HASCOL continues to outperform the industry in all major products with its aggressive expansion strategy achieving an overall market share of 8.2% (vs. 6.5% SPLY).

• Outstanding growth in the deregulated HOBC/95-Ron Petrol (up 65% YoY) is a positive sign for the industry where OMCs can expect to churn higher margins than on regulated products. Multiple storage expansions by PSO, APL and HASCOL going forward are also expected to increase competition in the industry.