KARACHI, October 30, 2024:Mari Petroleum Company Limited (MARI) has released its financial results for the first quarter of FY25, posting a profit of PKR 19.2 billion, translating to an earnings per share (EPS) of PKR 15.99. This marks a slight increase from the previous year’s EPS of PKR 15.94, showcasing stable profitability on a year-on-year basis. However, the company’s earnings saw a notable decline of 25% compared to the previous quarter.
Key Financial Highlights:
- Topline Performance: MARI’s total revenue for 1QFY25 decreased by 6% YoY, settling at PKR 45.3 billion, down from PKR 48.2 billion in the same period last year. The decline was attributed to several factors:
- A 5% reduction in the wellhead price of the Mari field.
- A 10% drop in global oil prices.
- A devaluation of the USD against the PKR.
- A 1% decrease in oil production, although gas production increased by 11% YoY.
- Sequential Growth: Every quarter, net sales increased by 14% QoQ, primarily driven by enhanced gas production from Mari HRL, which exceeded the threshold level of 577.5 mmcfd during 4QFY24.
- Exploration Costs: Exploration expenses surged by 68% YoY to PKR 3.0 billion in 1QFY25, reflecting higher prospecting expenditures incurred during the quarter. This increase followed a reversal of exploration costs reported in the previous quarter due to an impairment loss adjustment.
- Finance Income: The company reported finance income of PKR 3.4 billion, an increase of 35% YoY and 9% QoQ, attributed to higher returns on cash and cash equivalents.
- Taxation: The effective tax rate for 1QFY25 stood at 34%, a decrease from 41% in the corresponding period last year.
Conclusion
Mari Petroleum’s performance in the first quarter of FY25 demonstrates resilience amidst challenging market conditions. While the company faced headwinds from falling oil prices and production fluctuations, the steady growth in gas production and increased finance income helped maintain profitability. As MARI navigates through fluctuating commodity prices and explores new opportunities, its focus on efficient operations and cost management will be crucial for sustaining growth in the coming quarters.
