Mari Energies Limited (MARI) announced its financial results today, reporting earnings of PKR 12,800mn (EPS: PKR 10.66) for 2QFY26, reflecting a 15% YoY increase. Alongside the results, the company announced an interim dividend, returning to its historic payout level of 35% at PKR 8.30/share. Earnings rose due to a 6% increase in oil production, a 20% decline in operating expenses, and a 50% drop in exploration costs YoY.

Result Highlights

• Net sales in 2QFY26 rose 8% YoY to PKR 44,770mn. Oil production increased 6% YoY to 1,298 bopd, while gas production fell. Among MARI’s key gas fields, HRL dropped 2.8% YoY due to ATA at FFC’s plant, limiting incremental volumes. Goru B stayed stable, reflecting only two months’ data, while Shewa output surged 102% QoQ to 53 mmcfd.
• Royalty charges in 2QFY26 rose 33% YoY to PKR 10,648mn, mainly due to incremental royalty on Mari D&P Lease wellhead revenue.
• Exploration costs in 2QFY26 dropped 50% YoY to PKR 1,864mn and 16% QoQ, driven by reduced prospecting expenditure.
• Finance income stood at PKR 1,001mn in 2QFY26, declining by 56% YoY due to lower interest rates.
• The company recorded an effective tax rate of 35% in 2QFY26 (25% SPLY).
• MARI’s cash position declined to PKR 60,811mn in Dec’25 (Jun’25: PKR 76,895mn), while trade receivables increased up to PKR 88,765mn (Jun’25: PKR 86,581mn).

MARI is currently trading at forward FY26/FY27 multiples of 15.8x/11.8x P/E and 3.2x/2.7x P/B, offering dividend yields of 2.6%/3.4%.

AHL Research