APL outperforms its peers in terms of volumetric growth

March 6, 2019 (MLN): During the out-going month i.e. February, Oil Marketing Companies observed a decline of 9% MoM in sales, primarily due to a massive drop in Furnace Oil (FO) sales by 53% MoM, which stood at 171k MT. This was a result of greater inclination of Power plants towards RLNG as a cheaper substitute. On the other hand, High Speed Diesel (HSD) volumes rose by 8% MoM to stand at 584k MT.

On yearly basis, OMCs witnessed a decline of 2%, on account of 31% decline in Furnace Oil (FO) due to its lower consumption in power generation. Further, MS sales posted 10-month high growth of 16% YoY in expectation of rise in petrol prices.

APL outperformed its peers on YoY basis, as its overall volumes increased by 3% with major contribution coming in from growth in MS sales by 16%. However, the company’s performance on monthly basis was still unsatisfactory as overall volumes fell by 10% due a decline in FO sales by 33% MoM.  

HASCOL posted a decline in total volumes by 10% MoM to 196k MT, as the company’s FO sales fell by 48% MoM in Feb-19. On yearly basis, the company registered a fall in its total volumes by 6.8% in Feb-19, on account of a dip in the company’s FO volumes, depicting a fall of 37%.  

PSO’s aggregate volumes in Feb-19 showed a substantial fall of 14% MoM as they stood at 541k MT, on the back of depressing volumes of FO which fell by 64.1% MoM to 61k MT. However, MS and HSD were up by 2% and 7% MoM respectively. On yearly basis, PSO lost ground in Feb-19, where the total volumes dropped by 9.2%, while FO hugely contributed to the fall, registering a decline of 38% YoY, followed by HSD volumes which fell by 7%.