AKD Securities Limited - AKD Daily.

Karachi -- May 31, 2021 (PPI-OT)

PSO: Retail fuel growth to lead the way!

We update our estimates for PSO incorporating i) increased market share (44.4% in retail fuel segment for 10MFY21 vs. 40.9% for 10MFY20), ii) clarity on mechanism of circular debt clearance (payment expected by this weekend), and iii) increasing LNG receivables (increasing by PkR28.8bn during 10MFY21).

PSO has posted a phenomenal growth in volumes, outperforming the overall sector with an increase in volumes of 27%YoY for 10MFY21 against 19% of the industry while retail fuel volumes has increased by 27.5%YoY against 17.3% of the industry.

Government has provided final clearance to first tranche of circular debt clearance under which we expect PSO...