Pakistan Oil Marketing: Oil sales up 3% YoY and 2% MoM in Jul-2020
- Pak Oil sales are likely to increase by 2% MoM in Jul-2020 as Furnace Oil (FO) demand has picked up (+110% MoM) given (1) low FO prices resulting in higher FO-based power generation and (2) overall pick-up in economic activity following improvements in COVID-19 situation.
- Pak Oil sales are also up by 3% YoY, where we believe greater inter-city travel has resulted in 15% YoY higher High Speed Diesel (HSD) and 8% YoY higher Motor Spirit (MS) sales during Jul-2020.
- In Jul-2020, PSO sales are likely to decrease the most by 5% MoM as HASCOL and SHEL regain their market shares after lower sales in the previous month.
- Recall that in Jun-2020, PSO had gained market share as other OMCs inventories had mostly dried out.
- HASCOL is expected to post increase of 25% MoM with market share set to improve from 4.3% to 6.1% in HSD and from 5.3% to 6.7% in MS.
- SHEL (+13% MoM) similarly is expected to gain market share in MS by 0.8% and in HSD by 2.2%.
We are Market-Weight on Pak OMCs, where we expect Oil sales to grow by 9% YoY in FY21E.
Topline Securities is one of the fastest-growing brokerage houses in Pakistan. It has strong Equity Brokerage, Economic/ Equity Research, Commodity Trading and Corporate Finance & Advisory functions.
Topline Securities has been endowed with numerous awards by renowned international financial organizations. The highlights of which consists of the award for ‘Best Local Brokerage House of Pakistan’ by Asiamoney Brokers Poll (the largest Asia-focused equity services provider poll) in 2016 and ‘Best Equity Brokerage House’ by CFA Society Pakistan in 2015.
Previously, Topline Securities held the title for ‘Best Brokerage House’ for 4 consecutive years (2011-2014) by Asiamoney Brokers Poll. Other awards include the ‘Best Salesperson’ award by Asiamoney for 6 consecutive years (2011-2016), the ‘Arabia Fast Growth 500’ award and ‘Pakistan Fast Growth 100’ award in 2012 and 2013 by AllWorld Network.
JCR-VIS, a credit rating agency providing independent rating services in Pakistan has assigned initial rating of “A-2” for short term and “A” for long term to Topline Securities. Topline Securities is registered as Underwriter, Book Runner and Research Entity with Securities & Exchange Commission of Pakistan (SECP).
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