Mari Petroleum Posts 57% Profit Growth During First Half of FY24

Mari Petroleum Company Limited (MARI) announced its financial result today, posting a net profit of Rs. 37.5 billion during the first half of the financial year 2023-24 (1HFY24) against Rs. 23.8 billion in 1HFY23, up by 57 percent YoY.

On a quarterly basis, the company’s profitability arrived at Rs. 18.4 billion, up by a massive 65 percent YoY. Alongside the result, the company announced an interim cash dividend of Rs.  98 per share in 2QFY24.

Net sales in 1HFY24 swelled up by 54 percent YoY, settling at Rs. 93.7 billion compared to Rs. 61 billion in SPLY. According to Arif Habib Limited, this was due to:

  1. 17 percent and 34 percent YoY jump in gas and oil production, respectively,
  2. 29 percent YoY hike in the wellhead price of Mari Gas Field, and
  3. 22 percent YoY Pak Rupee depreciation against the greenback.

During 2QFY24, the net sales expanded by 56 percent YoY, arriving at Rs. 45.5 billion, given:

  1. higher wellhead gas price of Mari Gas Field,
  2. 21 percent YoY devaluation of PKR against USD, and
  3. 25 percent and 19 percent YoY growth in gas and oil production, respectively.

The exploration cost contracted by 47 percent YoY to Rs. 3.25 billion in 1HFY24 due to the absence of dry wells during the period.

Meanwhile, the exploration cost during 2QFY24 arrived at Rs. 1.46 billion, down by 66 percent YoY due to the aforementioned reason.

The finance income arrived at Rs.  4.1 billion in 1HFY24 versus Rs. 2.2 billion in SPLY, up by 85 percent YoY on account of higher income on cash and cash balances coupled. Whereas, finance income during 2QFY24 settled at Rs. 1.6 billion, showcasing an increase of 35 percent YoY owing to higher interest income during the quarter.
The company booked effective taxation at 40 percent in 2QFY24 vis-à-vis 34 percent in 2QFY23.

The earnings per share (EPS) of the company clocked in at Rs. 136.64 per share during 2QFY24 and Rs. 281.14 per share in 1HFY24.

MARI’s scrip at the bourse closed at Rs. 2,353.16, down by 4.04 percent or Rs. 99.21 with a turnover of 73,283 shares on Monday.

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