Karachi, July 05, 2021 (PPI-OT): POL sales post sharp recovery in FY21

After declining for three consecutive years, POL sales finally recovered – rather sharply – in FY21, growing by 18% YoY to 19.38mn tons. Granted, the return of Furnace Oil in Pakistan (in light of the gas crisis) did play a major role as demand grew by a massive 54% YoY, one cannot simply ignore the double-digit growth in the sales of Motor Spirit (MS) and High Speed Diesel (HSD).

From a company-specific view-point, we find that

Pakistan State Oil (PSO) has outperformed the industry with sales growing by 24% YoY. And this outperformance is seen in all major products in FY21.

On the other end is Hascol Petroleum (HASCOL) which was the only large Oil Marketing Company to witness a contraction, not just in overall sales but across all major products.

Attock Petroleum (APL) too witnessed a decline in the sales of retail fuels, though the black oil segment proved to be its saviour. Overall, APL barely managed to maintain it’s sales around the last year’s 1.7mn ton mark.

Meanwhile, sales growth of Shell Pakistan (SHEL) were broadly in line with the industry.

Given that industry sales are still well below the highs seen in FY17, we believe one can reasonably expect the growth to continue impressively, albeit at a slower pace.