Mari Petroleum Company Limited (MARI) is scheduled to post 3QFY24E earnings on Friday, where we expect the company to report PAT of PkR20bn for the quarter (EPS: PkR150.2), higher by 9%/22% on QoQ/YoY basis. The aforementioned incline is primarily due to the company achieving its highest ever quarterly gas production, estimated at 840mmcfd, up 5%/13% QoQ/YoY, during the outgoing quarter. The surge was largely due to rebounds in production from the Mari field, following one-off declines in the previous quarter due to reduced offtakes from fertilizer customers.

Further, we anticipate prospecting expenditures to remain higher by 65%QoQ, largely due to drilling works in the Mari, Block-28, and Karak blocks during the outgoing quarter. Overall, this results in the company posting its highest ever nine-month earnings, totaling PkR57.5bn (EPS: PkR431.3), representing an increase of 43%YoY.

Courtesy – AKD Research