OMCs: Sales up by 29% YoY, PSO leads the growth chart

October 4, 2021 (MLN): The overall sales volume of the Oil and Marketing industry has increased by 29% YoY to stand at 1.96MTs in the month of Sep’21 as compared to 1.52MTs in the same month a year ago.

However, on a monthly basis, the sale of Petroleum and Lubricants remained flat due to lower Furnace Oil (FO) demand.

The YoY growth in industry sales was largely supported by a surge in economic activity amid higher exports, imports, and growth in LSM on account of rising demand from both local and foreign consumers, a report by Arif Habib Limited said.

Besides, higher HSD demand from the Agriculture sector, robust growth in automobile sales numbers, rising tourism in Pakistan, and higher reliance on FO-based power plants also boosted the industry’s sales volume.

Cumulatively, during 1QFY22, sales of total petroleum products jumped by 24% YoY to 5.86MTs against 4.74MTs in the same period last year.

Category-wise, HSD, and MS posted double-digit growth of 50% and 25% YoY during Sep’21 with offtake undergoing a jump to 0.7MTs and 0.8MTs respectively. This takes the cumulative 1QFY22 sales of HSD and MS to 2.09MTs and 2.35MTs, up by 27% and 14% YoY respectively.

Similarly, FO sales also moved up by 8% YoY to 0.4MTs during Sep’21 while during 3M of FY22, the sales volume of FO surged by 38% YoY to 1.28MTs.

Company-wise analysis demonstrates that Pakistan State Oil Company Limited (PSO) led the volumetric growth chart by posting massive 42% YoY growth in Sep’21 which was majorly contributed by sales growth of MS and HSD by 39% and 61% YoY, respectively.

This growth was followed by SHEL, depicting a growth of 36% YoY supported by strong sales growth of HSD by 75% YoY and MS by 17% YoY. Likewise, APL also followed suit and recorded a growth of 22% YoY, in Sep’21.

However, HASCOL witnessed a massive decline of 56% YoY due to a decline in sales volumes of MS and HSD by 53%, 59%, YoY respectively.

With regards to market share, PSO turned out to be a major winner as it managed to expand its market share by 4ppt YoY to 51.6% compared to 47.6% in 3MFY21.

Whereas the market share of APL and SHEL remained stable at 9.7% and 7.3%. However, the market share of HASCOL and Others dropped by 3% and 0.8% YoY to 1.6% and 29.9% respectively in 3MFY22 against 4.8% and 30.6% in 3MFY21.

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