2QFY21 Result: EPS at PkR54.98/sh – undershoots street estimates
Category: Oil & Gas
Pakistan State Oil (PSO)
Earnings grow by 48% amidst inventory gains
US Oil Producers screaming : OPEC+ Russia happy?
Latest US production dropped from 13.1m to 10.5m in 12 weeks. The 2.6mn (~20%) drop is significant & in line with a 23% cut announced by the OPEC+. Exceptionally, Saudi Arabia announced a bigger 37% cut (low base level from 12m to 11m + 1mn voluntary cut). US had also voluntary picked up Mexico’s share of 400,000 barrels cut thus safe… Continue reading US Oil Producers screaming : OPEC+ Russia happy?
Pakistan OMCs – Inventory losses looming amid disparity between oil prices
The news of petroleum shortage has been making rounds, with nearly all pumps, barring PSO’s, reportedly out of fuel inventory. The disparity between domestic petroleum prices set for Jun20 and the imported cost of oil is the prime reason for the shortage. Domestic prices set for Jun20 are estimated to be PKR 17/liter cheaper than… Continue reading Pakistan OMCs – Inventory losses looming amid disparity between oil prices
OMC Sales increase by 39% M/M as lockdown eases
POL sales volume sequentially improved during May’20, up by 39% M/M to 1.48 MN tons, spearheaded by 1.1x M/M increase in FO to 145 KT during the month. The increase in FO is likely driven by the lower prices of the fuel, making it financially viable for use in power generation in the country. On… Continue reading OMC Sales increase by 39% M/M as lockdown eases
Crude Oil Outlook: Saudi Arabia cuts Jun’20 production outlook
▪ The Kingdom of Saudi Arabia announced on Monday that it will be cutting its oilproduction by another 1 MN BPD for Jun’20, on top of the already agreed upon ~2.5MN BPD cut announced as a part of the OPEC+ agreement in April (effective May’20). ▪ Following the cut, the production rate from Saudi Arabia… Continue reading Crude Oil Outlook: Saudi Arabia cuts Jun’20 production outlook
OMCs to experience another wave of heavy inventory losses
Regulated POL products’ prices were lowered for the second time in the last two months, raising concerns of possible inventory losses for Oil Marketing Companies. Whether these inventory losses would hinder profitability in the upcoming quarter is dependent on the movement in products’ prices in June and July. To recall, the Power Division estimated… Continue reading OMCs to experience another wave of heavy inventory losses
Energy is getting cheaper. Covid has shifted the business dynamics.
Fall in the oil prices is win for some, loss for many. Energy importing nations are eager to get back to close to normal so derive full benefits. So are energy intensive businesses. However, the demand is much below the survival rate. Many business are going insolvent, laying employees and dying for good. Pockets are… Continue reading Energy is getting cheaper. Covid has shifted the business dynamics.
OMC offtake improves during Apr’20; HSD shows promise
▪ Data from the Oil Companies Advisory Council (OCAC) showed that Oil MarketingCompanies collectively sold 1.07 MN tons of oil during Apr’20, higher by 4.6% M/M,while lower by 35.6% Y/Y. The sequential increase was driven by a 41.8% M/M increasein HSD offtake in the industry; effects of which were watered down by a 20% M/Mdecline… Continue reading OMC offtake improves during Apr’20; HSD shows promise
April’s Petrol & Diesel sales decline 35% & 16% YoY , respectively.
Not a bad start given the entire country was locked down. However, partial resumption of essential & export industries kept the sales ticking. What’s intriguing is the Rural disconnect seemingly functioning near to normal. Either the precautions were not taken or the masses did not strictly follow the instructions. The return of Wheat harvesting season… Continue reading April’s Petrol & Diesel sales decline 35% & 16% YoY , respectively.
