External broker reports(aggregated public sources), Topline Securities

Topline Securities

External broker reports(aggregated public sources)

Topline Securities is one of the fastest growing brokerage houses in Pakistan. It has strong equity brokerage, economic / equity research, mutual fund distribution, commodity trading and corporate finance & advisory functions. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Thematic (Sector/Industry)

<ul>
<li>To recall, Government of Pakistan under the IMF program has sizably increased the gas prices by ~75% in Nov-2023 and ~20% in Feb-2024 to contain the annual pile up of the gas sector circular debt which mounted to around Rs3trn by Jan-2024.</li>
<li>Oil and Gas exploration companies were amongst the top affected companies of this menace. However, post adjustment/increase in gas prices, there has been some improvement in the cashflows of the companies.</li>
<li>To quantify the impact, we have assessed Mar 2024 quarter accounts of the OGDC and PPL. As per which the change in receivables to net sales ratio in 3QFY24/9MFY24 has fallen to 21%/20% of the net sales for both companies cumulatively compared to last six years (FY18-23) average of 29%, signaling partial improvement in recoveries of the E&amp;P companies.</li>
</ul>
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.


To recall, Government of Pakistan under the IMF program has sizably increased the gas prices by ~75% in Nov-2023 and ~20% in Feb-2024 to contain the annual pile up of the gas sector circular debt which mounted to around Rs3trn by Jan-2024.
Oil and Gas exploration companies were amongst the top affected companies of this menace. However, post adjustment/increase in gas prices, there has been some improvement in the cashflows of the companies.
To quantify the impact, we have assessed Mar 2024 quarter accounts of the OGDC and PPL. As per which the change in receivables to net sales ratio in 3QFY24/9MFY24 has fallen to 21%/20% of the net sales for both companies cumulatively compared to last six years (FY18-23) average of 29%, signaling partial improvement in recoveries of the E&amp;P companies.

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Pakistan Equity - Flash Note; Oil & Gas Exploration

Cross Asset Strategy

<ul><li>In a much-awaited development, the Economic Coordination Committee (ECC) of the cabinet approved a weighted average gas price hike of 70-75% for domestic gas consumers and industries. The increase in gas prices will now be effective from Nov 01, 2023, instead of the proposed date of Oct 01, 2023.</li><li>Further a fixed rate of Rs400/month (earlier Rs10/month) from protected consumers and Rs1,000/month (earlier Rs460/month) for upto 1.5 hm3 from non-protected consumers. Additionally Rs2,000/month (previously Rs460/month) will be charged for consumption ranging from 2 hm3 to above 4 hm3 for non-protected consumers. These charges will be collected in addition to the increase in gas prices.</li><li>The increase in gas tariffs will help bridge revenue shortfall for the gas utility companies for the current year as Pakistan last increased gas prices in Feb 15, 2023 for domestic gas consumers and industries with effective from Jan 01,2023.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

In a much-awaited development, the Economic Coordination Committee (ECC) of the cabinet approved a weighted average gas price hike of 70-75% for domestic gas consumers and industries. The increase in gas prices will now be effective from Nov 01, 2023, instead of the proposed date of Oct 01, 2023.Further a fixed rate of Rs400/month (earlier Rs10/month) from protected consumers and Rs1,000/month (earlier Rs460/month) for upto 1.5 hm3 from non-protected consumers. Additionally Rs2,000/month (previously Rs460/month) will be charged for consumption ranging from 2 hm3 to above 4 hm3 for non-protected consumers. These charges will be collected in addition to the increase in gas prices.The increase in gas tariffs will help bridge revenue shortfall for the gas utility companies for the current year as Pakistan last increased gas prices in Feb 15, 2023 for domestic gas consumers and industries with effective from Jan 01,2023.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Pakistan Strategy - ECC approved gas price hike; Implications on Economy & Sectors/Companies

Pakistan

Pakistan Petroleum Ltd. specializes in the exploration and production of crude oil and natural gas. The Company also sells liquefied petroleum gas and condensates.

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Pakistan Petroleum (PPL PA)

Pakistan Equity - Flash Note; Oil & Gas Exploration

Government of Pakistan under the IMF program has sizably increased the gas prices by ~75% in Nov-2023 and ~20% in Feb-2024 to contain the annual...

Topline Securities

Pakistan Strategy - ECC approved gas price hike; Implications on Economy & Sectors/Companies

In a much-awaited development, the Economic Coordination Committee (ECC) of the cabinet approved a weighted average gas price hike of 70-75% for...

Topline Securities

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)