June 02, 2022 (MLN): The total sales of Oil and Marketing Companies (OMCs) registered a growth of 28% YoY to clock in at 2.17 million tons (MTs) in May 2022, compared to 1.69MTs in May 2021.
This notable growth is attributed to the higher sales of Furnace Oil, High-Speed Diesel (HSD), and MS, showing up the growth of 2.7x YoY, 12% YoY, and 9% YoY, respectively.
On the other hand, overall industry sales volume dropped by 2% MoM on a sequential basis which is mainly on account of fewer working days in May and some impact of the increase in prices.
Cumulatively, around 20.65 MTs of oil was sold during 11MFY22 posted a jump of 18% YoY on the back of the restoration of economic activities which pushed the transportation sector to continue its operations normally.
Category-wise, the sale of HSD dropped by 7% MoM to 852 thousand tons in May 2022. On the other hand, MS sales in the same month exhibited an increase of 3% MoM to record at around 797 thousand tons.
In the 11MFY22 period, HSD, MS, and FO accumulated to 8.15 MTs, 8.25 MTs, and 3.59 MTs, showing a surge of 18%, 11%, and 36% compared to the same period last year.
Company-wise analysis showed Pakistan State Oil (PSO) led the volumetric growth chart as its sales grew by 61% YoY whereas, on an MoM basis, it dropped by 1% to clock in at 1.2 MTs. Product-wise, HSD and MS record a growth of 24% YoY while on monthly basis, HSD volumes dropped by 11% MoM while MS surged by 14% MoM in May 2022.
This is followed by APL and SHEL with the growth of 49% YoY and 19% YoY respectively. On the other hand, HASCOL posted negative growth of 86% YoY in the review period.
With regards to market share, PSO grabbed the largest market share of 51% in May, up by 1% MoM while the market share of SHEL and APL stood at 10% and 8%, respectively.
Moving forward increase in MS prices and a slowdown in economic activity may shake the sales volume of MS and HSD in the coming months on the other hand higher demand for electricity due to summer season will help to maintain the FO sales, a report by Darson Securities noted.
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