AKD Securities Limited - AKD Daily (January 10, 2022)

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AKD Securities Limited – AKD Daily (January 10, 2022)

January 10, 2022

Karachi, January 10, 2022 (PPI-OT): Pakistan OMCs: Retail fuels continue to remain strong

Increase in volumes directly lifted throughput levels, with 4QCY21 retail volumes at 4.5mn tons, up 6%YoY largely due to a 8%YoY increase in HSD while on sequential basis, retail fuel volumes remained flat.

Company-wise, HASCOL/SHEL/APLPSOdeliveredthroughputlevelsof151k/742k/642k/725k ltrs/outlet for the quarter, moving -71%/+15%/+25%/+14%YoY and +23%/+5%/+9%/-2%QoQ taking total average industry throughput +6%YoY/-0.5%QoQ to 715k ltrs/outlet.

Difference between throughput level of MS and HSD decreased to 86k ltrs/outlet against 158k ltr/outlet for 3QCY21 which we attribute to decreased influx of grey product into HSD market leading to an increase in volumes while seasonality led to a decline in MS sales.

Moving forward, with overall competitive landscape improving and phasing out of furnace oil, retail fuels will continue to be the mainstay of the sector while competition from private players also intensifies.