The Alexandria Mineral Oils Company (AMOC) has recorded strong sales in June 2020, despite the weak global and regional economic backdrops due to the novel coronavirus (COVID-19) pandemic.
The company noted that its total sales of petroleum products amounted to 14.5 kilotonnes (kt) in June, with 9kt sold locally and the rest exported, the highest monthly run in recent times.
Moreover, AMOC added that it had managed to open up new export markets in the Middle East and East Asia during the second quarter (Q2) of fiscal year (FY) 2020. Its sales registered 18kt in Q3 of FY 2020, with a monthly average of 6kt.
Naeem Research expects AMOC’s sales to post strong growth in Q4 of FY 2020. It added, however, that with oil and petroleum prices having remained at low levels during the quarter, it expects profitability to remain weak.
“We continue to recommend a HOLD on AMOC with a TP of EGP 2.60/share” Naeem Research added.