OMC sales clocked in at 1.8mn tons for Mar’22, up 23%YoY while on MoM basis, sales witnessed an increase of 19%. The YoY increase was led by FO sales as power production on FO has increased due to low availability of gas resulting in a shift to other sources

Overall, OMC volumes have increased by 15%YoY for 9MFY22 where HSD took the lead with an increase of 19%YoY while MS/FO posted increase of 10/16%YoY.

PSO turned out to be the star performer for the month with an increase in total volumes of 38%YoY against increase in total industry volumes of 23%YoY where the difference was also visible in retail fuels segment with PSO’s retail fuels’ volume increasing by 34% YoY against 20%YoY of the industry, taking PSO’s market share to 48.7% for Mar’22 against 43.7/45.9% for Mar’21/Feb’22.

APL (TP: PkR438/sh) is our top pick from the sector given i) company’s low leverage protecting it against any increase in interest rates, ii) high payout ratio of the company providing it attributes of a defensive play, and iii) improved storage network of APL expected to aid in enhancing market share.

Courtesy – AKD Research