OMCs: Strong start to new year; volume up by 12% YoY in Jan’21

February 02, 2021 (MLN): The overall sales of Oil and Marketing Companies (OMCs) continued to witness double-digit growth in Jan’21, registering a 12% YoY increase to 1.52 MTs driven by Furnace Oil (FO) demand that improved by 34% YoY.

According to the report by Topline Securities, on yearly basis, the pickup in FO volumes is largely attributable to high demand from the power sector given gas shortages during winters and overall pick-up in economic activity following improvements in the COVID-19 situation.

Moreover, Govt. efforts in curbing petroleum products smuggling was also the major reason for growth. Up till now, FBR has sealed 1,556 retail outlets across the country from 2,094 illegal retail outlets, said Ismail Iqbal Securities in its report.

On a sequential basis, OMCs’ volumetric sales posted a decline of 5% when compared to 1.59 MTs in December-20, mainly due to lower sales of High-Speed Diesel (HSD) and Motor Spirit (MS) which fell by 13% and 5%, MoM, to 544 MTs and 637 MTs respectively. This is due to seasonal impact and increased MS prices.

Cumulatively, during 7MFY21, industry volumes surged by 11%, accredited to a surge in FO, HSD and MS sales which jumped by 37%, 12% and 7% YoY respectively.

Company-wise, PSO posted the largest volumetric growth of 31% YoY in sales of petroleum products, driven by over 2 times YoY increase in FO sales. This was followed by a 15% YoY rise in Shell’s volume.

While APL, HASCOL and BYCO posted a negative growth of 3%, 41%, and 8%, YoY, in the month of Jan’21.

With regards to market share, PSO continued to improve market share as it witnessed an increase of 46% for Jan’21 against 39% in December-20. On the other hand, HASCOL’s share dropped to 4% from 9% in the previous month while SHEL maintained its market share at 8% in Jan’21.

Copyright Mettis Link News