OMCs: Sales up by 6% MoM, PSO leads the chart

April 2, 2021 (MLN):  The upturn in the sales of Petroleum and Lubricants continues, as the total sales volume of the Oil and Marketing Companies (OMCs) increased by 6% MoM to stand at 1.48MTs in the month of March’21 as compared to 1.39MTs in the previous month.

While on yearly basis, the total industry volume showed a significant jump of 49% YoY from 1.00MTs in March’20. However, the YoY comparison may not be appropriate as the demand was slashed severely under countrywide lockdown during the last week of March’20. The sales of Furnace Oil (FO), High-Speed Diesel (HSD), and Motor Spirit (MS) were up by 3.4x YoY, 39% YoY, and 26% YoY during Mar’21.

On monthly basis, the growth in the industry’s sales was largely supported by a 9% MoM incline in Motor Spirit (MS) sales to 0.68MTs amid better economic activity. While demand for Furnace Oil (FO) also remained robust as it jumped by 22% MoM to 0.21MTs.

However, the consumption of High-Speed Diesel (HSD) on a monthly basis depicted a decline of 3% to 0.53MTs mainly due to smart lockdowns in Punjab province.

Cumulatively, during 9MFY21, the overall sales of petroleum products increased by 16% YoY to 14.15 MTs as opposed to 12.17MTs in the corresponding period last year. The major contribution to growth during the period came from MS, HSD, and FO as their offtake surged to 6MTs, 5.37MTs, and 2.3MTs, up by 10% YoY, 18% YoY, and 44% YoY against 5.5MTs, 4.5MTs, and 1.6MTs respectively in the same period last year.

Company-wise, Pakistan State Oil (PSO) led the charts by posting 85% YoY and 8% MoM growth to 0.69MTs, contributed by strong sales of FO (up by 31% MoM and 10.7x YoY). This was followed by Shell Pakistan (SHELL) which registered a growth of 41% YoY and 5% MoM mostly contributed by strong MS sales which witnessed a growth of 11% MoM and 30% YoY.

Likewise, sales of Attock Petroleum Limited (APL) also surged by 9% MoM and 15% YoY. The higher consumption of FO and MS were the major contributors in increasing APL’s sales volume.

On the other hand, Hascol Petroleum’s (HASCOL) sales went down by most by 7% MoM and 51% YoY.

With regards to market share, PSO continued to grasp the biggest market share of 47%, down by 1ppts MoM, while APL’s market share improved by 1ppts MoM to 7%.

On the other hand, SHEL and HASCOL maintained their market share at 9% and 3% respectively.

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