Mari Petroleum Company Limited (MARI) announced its financial result today, posting profit after tax of PKR 9,099mn (EPS: PKR 68.21) during 1QFY22 compared to PKR 9,066mn (EPS: PKR 67.96) in 1QFY21.

Result Highlights

 ·        Net Sales in 1QFY22 witnessed an uptick of 2% YoY, settling at PKR 20,726mn in contrast to PKR 20,363mn in SPLY amid increase in oil and gas production of 62% and 1% YoY, respectively. However, wellhead gas of Mari Field dropped by 1% YoY.

·        The exploration cost surged by 43% YoY, clocking-in at PKR 1,749mn in 1QFY22, on account of dry well Daim-1 reported during the quarter.

·        The company recorded other income of PKR 18mn in 1QFY22 against other expense of PKR 507mn in 1QFY21, owed to higher income from seismic unit.

·        The company booked effective taxation at 30% in 1QFY22 similar to last year.

 Recommendation

 ·        Currently, we have a ‘BUY’ stance on the stock with Dec’21 target price of PKR 1,962.5/share.

Courtesy – AHL Research