·         Total OMC volumes clocked in at 2.17mn tons for May’22, up 28%YoY while on a MoM basis, sales saw a slight fall of 2%. The majority of YoY increase was once again led by FO, up 174%, on the back of high power generation

·         Overall, OMC volumes rose by 18% in 11MFY22, where FO saw a marked increased during the period, up 35%YoY, while MS/HSD posted increase of 11/18% respectively.

·         Company wise, PSO was again the stand out performer for the month, seeing an increase in total volumes of 61%YoY vs an industry rise of only 28%YoY. The company also dominated in the retail fuel segments, rising by  24%YoY against 11%YoY for the industry. PSO ended the month with 56% total market share against 45/51% for periods May’21/May’22.

·         APL (TP: PkR417/sh) remains our top pick for the reasons including i) Aggressive capacity & retail network expansion to enhance market share, ~4x times in last 3 years, ii) Near-to-none leverage on books, protecting it against any hike in interest rates, iii) high payout ratio of the company, placing it in the defensive category, and iv) Retail centric revenue keeping it shielded from circular debt. 

Courtesy – AKD Research