Brief Takeaways:

• MARI posted unconsolidated earnings of PKR 65.14bn (EPS: PKR 54.25) in FY25, down 16% YoY mainly due to 15% additional wellhead costs from the renewal of the lease, and lower prices, including the impact of FX.
• The company has a daily production capacity of 127k BOE and total reserves as of Jun ’25 at 952 MMBOE.
• The company is diversifying into the Minerals, Technology, and Services sectors. Mari Energies has two subsidiaries Mari Technologies (100% ownership), and Mari Minerals (100%), and an associate Pakistan International Oil Limited (25%).
• Mari has reduced its reliance on the Mari field for resource concentration from 95% in FY20 to 80% by FY25. This has been due to discoveries in the Sujawal Block and the Waziristan Block. Production potential from the Waziristan Block (Shewa and Spinwam) is up to 300 million cubic feet per day, according to the management. However, a capex of USD 400-500mn would be required going forward.
• Shewa commenced production in Mar ’25 with a potential of 70mmcfd gas and 700 BOPD oil. The Spinwam 1 tie-in process with Shewa is underway.
• A total of 16 wells were spud in FY25, including 10 development wells and two each of exploratory, appraisal, and disposal wells. In the future, the plan is to continue to target 15-20 wells each year.
• Gas production from Jhim-East X-1 and Pateji X-1 (PPL operated Shah Bandar Block) also commenced via the Sujawal Gas Processing Facility. In Phase 1, existing capacity is 20mmcfd, and in Phase 2, capacity is set to be enhanced to 25-30mmcfd.
• Regarding circular debt management, it was noted that supplying gas to third-party customers is a partial solution due to the 100 mmcfd cap on sales. A structural solution would be a breakthrough in the deferment of RLNG cargoes.
• Sales to fertilizer companies from Ghazij and Shawal are awaiting government approval, and supply can be started 18-24 months after approval.
• Production flows from Mari HRL are expected to be maintained at 590-600mmcfd after the pressure enhancement project is completed.
• Regarding Offshore Block 5, Abu Dhabi management commented that the field development plan for the three discovered fields is underway; however, the timeline is uncertain.
• The Islamabad data center, through Mari Technologies, is expected to be completed by early next year, and the Karachi data center has been targeted for completion by the end of 2026. Data centers will be powered using a mix of green energy and the grid, and customers will include large public and private sector entities.