Mari Petroleum Company Limited (MARI) announced its financial result today, posting a net profit of PKR 40,291mn (EPS: PKR 302.03) during 9MFY23 compared to PKR 27,459mn (EPS: PKR 205.84) in 9MFY22, up by 47% YoY. On a quarterly basis, the company recorded a net profit of PKR 16,430mn (EPS: PKR 123.16), up by 51% YoY.

Result Highlights

· Net sales in 9MFY23 expanded by 46% YoY, settling at PKR 98,840mn compared to PKR 67,617mn in SPLY amid i) 61% YoY surge in the wellhead price of Mari Gas Field, and ii) 27% YoY Pak Rupee depreciation against the greenback. During 3QFY23, the topline augmented by 50% YoY, arriving at PKR 37,838mn given i) 56% YoY higher wellhead gas price of Mari Gas Field, ii) 32% YoY devaluation of PKR against USD, and iii) 18% and 6% YoY growth in oil and gas production, respectively.

· The exploration cost ascended by 111% YoY to PKR 9,539mn in 9MFY23 given three dry wells (Bazil X-1, Sundha Thal-1 and Shahpurabad-1) incurred during the period. Meanwhile, the exploration cost during 3QFY23 arrived at PKR 3,816mn, up by 104% YoY owing to higher seismic activity during the quarter.

· The finance income arrived at PKR 6,858mn in 9MFY23 versus PKR 2,565mn in SPLY, up by 167% YoY on account of higher income on cash and cash balances coupled with exchange gain on foreign currency. Whereas, finance income during 3QFY23 settled at PKR 4,644mn, depicting a massive growth of 5.5x YoY owing to an immense exchange gain of ~PKR 2.5bn along with interest income during the quarter.

· The company booked effective taxation at 33% in 3QFY23 vis-à-vis 27% in 3QFY22.

Courtesy – AHL Research