AKD Research has reviewed the financial results of Mari Energies Ltd (MARI) for the quarter and reported that earnings surpassed expectations primarily due to a lower tax charge. In the latest quarter, MARI reported a Net Profit After Tax (NPAT) of PKR 18.8 billion, translating to Earnings Per Share (EPS) of PKR 15.7, which reflects a 27% decrease year-over-year (YoY). For the full fiscal year, the company’s NPAT totaled PKR 65.1 billion (EPS: PKR 54.3), down 16% YoY. Alongside these results, the company announced a final cash dividend of PKR 21.7 per share, with a payout ratio of 40%, also representing a 16% decrease YoY.
The company’s net sales for the quarter were PKR 44.8 billion, reflecting a YoY increase of 12%. This growth was primarily driven by a higher estimated gas output of 863 million cubic feet per day (mmcfd), which is a 4% increase YoY compared to the same period last year, according to the Petroleum Policy Implementation System (PPIS).
It is noteworthy that the estimated production from Mari Drilling and Production (D&P) rose to 798 mmcfd, which also represents a 4% increase YoY. Additionally, the initiation of flows from the Shewa well, producing 45 mmcfd during the final quarter, contributed to this increase.
However, elevated royalty charges amounted to PKR 10.5 billion for the final quarter, a significant 130% increase YoY, which impacted the bottom line negatively. This royalty includes an additional 15% charge on the well-head value of the Mari D&P lease that will take effect from November 2024. Consequently, the full-year effective royalty rate is expected to be 20% for FY25, compared to 12.2% in FY24.
The company’s exploration expenses reached PKR 5.2 billion, a reversal from previous periods. Importantly, the company is currently engaged in the drilling of exploratory wells, specifically Soho-1 and Mari Ghazij CF-A1, during this period.
Additionally, the company’s finance income decreased to PKR 2.5 billion, representing a 20% YoY decline due to falling investment yields.
During the final quarter, the company’s effective tax rate was recorded at 13.2%. For the full fiscal year 2025, the effective tax rate amounted to 28%, a slight decrease from 30% in the previous year.
We maintain our ‘HOLD’ recommendation on MARI, with a target price of PKR 670 per share for December 2025.s, specifically Soho-1 and Mari Ghazij CF-A1, during this period.
Additionally, the company’s finance income decreased to PKR 2.5 billion, representing a 20% YoY decline due to falling investment yields.
During the final quarter, the company’s effective tax rate was recorded at 13.2%. For the full fiscal year 2025, the effective tax rate amounted to 28%, a slight decrease from 30% in the previous year.
We maintain our ‘HOLD’ recommendation on MARI, with a target price of PKR 670 per share for December 2025.
