As per OGRA’s Notification on 30th Nov’22, OMC margins on MS and HSD have been revised to PKR 4.00/ltr and PKR 5.00/ltr, respectively from PKR 3.68/ltr previously. We expect the current revision in OMC margins to have an annualized earnings impact of PKR 9.38/share, PKR 6.04/share and PKR 3.53/share on PSO, APL and SHEL, respectively.
It is pertinent to note that we have assumed a 20% YoY decline in volumes of MS and HSD while calculating the impact on the companies. We do highlight that ECC and Cabinet has already given a nod to revision of OMC Margins to PKR 6.00/ltr on both MS and HSD. We expect the OMC margins to be revised to PKR 6.00/ltr on the mentioned products by 15th Dec’22. Once this revision materializes, it is projected to have an annualized earnings impact of PKR 26.46/share, PKR 17.77/share and PKR 11.61/share on PSO, APL and SHEL, respectively.
Courtesy – AHL Research