OMCs: In full Swing

May 4, 2021 (MLN): The Oil and Marketing Companies (OMCs) witnessed another money-making month, as the total sales volume of the industry has increased by 57% YoY to stand at 1.67 MTs in the month of April’21 as compared to 1.07MTs in the same month a year ago.

The significant upturn in the sales of Petroleum and Lubricants on yearly basis was attributable to the low base effect as demand was severely slashed under nationwide lockdown last year.

The growth in industry sales was largely supported by higher consumption of diesel (+44% YoY) due to the ongoing crackdown against HSD smuggling and uptick in overall economic activity. On the other hand, MS has witnessed a decline of 2% owing to prevailing smart lockdowns and restrictions across the country. FO sales witnessed 155% YoY growth, aided by increased FO-based electricity generation during the month.

On a monthly basis, the total industry volume showed a growth of 13%, MoM, from 1.48MTs in the month of March’21, primarily due to a 47% uptick in HSD sales. On the other hand, MS sales dipped due to the ongoing covid wave and smart lockdown in some cities. While demand for FO plummeted by 17% MoM as the government's focus once again shifted to curtailing FO for power generation.

Cumulatively, during 10MFY21, the overall sales of petroleum products increased by 20% YoY to 15.82MTs as opposed to 13.24MTs 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 6.7MTs, 6.16MTs, and 2.48MTs, up by 13% YoY, 21% YoY, and 49% YoY respectively.

Company-wise, Pakistan State Oil (PSO) led the charts by posting 100% YoY and 12% MoM growth to 0.778MTs, contributed by strong sales of HSD (up by 53% MoM and 64% YoY). Among other listed companies SHEL, APL, and BYCO manage to post-minimal growth of 3%, 6%, 3% on a monthly basis whereas, on yearly basis, the sales volume of SHEL, APL, and BYCO jumped significantly by 65%, 41%, and 25% respectively.

HASCOL, on the other hand, continue to post negative growth both on monthly as well as on yearly basis as the company is facing liquidity issue resulting from lower sales and decrease market share.

Moreover, PSO continued to grasp the biggest market share of 47%, while APL, SHEL, BYCO, and HASCO lost their shares by 1ppts MoM to 8%, 8%, 5%, and 2% respectively.

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