Mari Petroleum Company Limited (MARI) announced its financial result today, posting a bottom line of PKR 51,629mn (EPS: PKR 387.02) during 9MFY24 against PKR 40,291mn (EPS: PKR 302.02) in 9MFY23, up by 28% YoY. On a quarterly basis, the company’s profitability arrived at PKR 14,124mn (EPS: PKR 105.88), down by 14% YoY.

Result Highlights

Topline in 9MFY24 swelled up by 44% YoY, settling at PKR 141,992mn compared to PKR 98,840mn in SPLY amid i) 16% and 18% YoY jump in gas and oil production, respectively, ii) 19% YoY hike in the wellhead price of Mari Gas Field, and iii) 17% YoY devaluation of PKR against USD. During 3QFY24, the net sales jumped up by 28% YoY, arriving at PKR 48,247mn given i) 11% YoY higher wellhead gas price of Mari Gas Field and ii) 26% YoY growth in gas production.

The exploration cost surged by 97% YoY to PKR 18,783mn in 9MFY24. Meanwhile, the exploration cost during 3QFY24 arrived at PKR 15,527mn, augmenting by 4x YoY because of a dry well (Maraab X-1) incurred during the quarter coupled with higher prospecting expenditure undertaken during the quarter.

Finance income was PKR 6,105mn in 9MFY24 versus PKR 6,858mn in SPLY, down 11% YoY due to lower income on cash and cash balances. In contrast, finance income during 3QFY24 settled at PKR 2,007mn, a decline of 57% YoY given the absence of exchange gains during the quarter.

The company booked effective taxation at 8% in 3QFY24 vis-à-vis 33% in 3QFY23. In our view, the company booked tax reversals during the quarter since the court gave a favourable judgment regarding the depletion allowance.

Courtesy – AHL Research