OMCs: Sales touching 21mn mark in FY14
The government’s efforts to rope-in the rampant power outages helped the OMCs sales to cross 20mn tons mark after a lapse of 3-years. Oil product sales touched a record high of 21.4mn tons in FY14 versus 19.5mn tons in FY13 (a growth of 10%YoY) thanks to higher sales of petrol (up 15%YoY) and furnace oil (up 12%YoY). HSD sales, which declined by an average 3% in last 5-years (FY09-13), grew by 1%YoY to 6.9mn tons in FY14. Furthermore, the sector was also able to achieve the highest quarterly sales in 4QFY14.
Amongst the individual companies, Attock Petroleum (APL) outperformed the industry growth by a healthy 7% that allowed it to expand its market share by 1ppsYoY to 9.3%. Pakistan State Oil (PSO), despite showing robust growth in FO and petrol sales, underperformed the industry by 6% due to reduced HSD sales. Lastly, Shell Pakistan (SHEL) sales grew by 7%YoY translating into underperformance by 3%. However, the 2 underperformers have been the stars in 4Q.
4QFY14 highest quarterly sales ‐ attaching positive bias to next results
Besides sector reporting the highest ever sales in FY14 of 21.4mn tons, the sector also achieved the highest quarterly sales in 4QFY14. The sector was able to sell 6.1mn tons of oil products in the outgoing quarter, up 31%QoQ and 11%YoY. On YoY basis, improved sales continue to come from higher FO (up 17%YoY) and petrol (up 11%YoY), whereas HSD was the star performer in QoQ analysis. On QoQ basis, the product sale grew by a significant 58%.
Amongst the individual companies, PSO and SHEL sales grew by 35%QoQ in 4QFY14 thanks to higher sales of FO and HSD, whereas APL sales grew by 21%QoQ. The higher volumetric variance attach positive bias to upcoming corporate results of the sector. Overall, APL sales grew by 17% YoY in FY14 , while PSO and SHEL witness a growth of 4%YoY and 7%YoY, respectively.