Mari Petroleum Company Limited (PSX: MARI) has reported its financial results for the first quarter of fiscal year 2024. The company announced a profit after tax of Rs. 19.1 billion, marking a 51 percent increase compared to the same period in the previous fiscal year, when it recorded a profit of Rs. 12.7 billion.
This represents the highest-ever quarterly net profit for the company. On a quarter-on-quarter basis, the earnings increased by 21 percent.
The significant growth in net sales during the first quarter of fiscal year 2024, which reached Rs. 48.2 billion, was primarily driven by a 51 percent year-on-year surge. This growth can be attributed to a healthy increase in gas and oil production (22 percent and 48 percent year-on-year, respectively), a 29 percent year-on-year rise in the wellhead price of the Mari Gas Field, and a 23 percent year-on-year depreciation of the Pakistani Rupee against the US dollar.
On a sequential basis, the company’s revenue increased by 3 percent due to a 14 percent year-on-year increase in gas production and an 11 percent year-on-year rise in the wellhead price of the Mari Gas Field.
The exploration cost increased by 30 percent year-on-year, reaching Rs. 1.79 billion in the first quarter of fiscal year 2024, primarily due to higher prospecting expenses. However, on a quarter-on-quarter basis, the exploration cost decreased by 72 percent, reflecting lower prospecting expenditure during the quarter.
The company’s finance income saw significant growth, reaching Rs. 2.49 billion in the first quarter of fiscal year 2024, a 144 percent year-on-year increase. This increase was attributed to higher income from cash and cash balances. Finance income also increased by 12 percent on a quarter-on-quarter basis.
In terms of taxation, the company recorded an effective tax rate of 41 percent in the first quarter of fiscal year 2024, compared to 34 percent in the same period the previous year.
During this quarter, the company achieved its highest-ever quarterly hydrocarbon sales, amounting to 10 million barrels of oil equivalent (BOE), marking a 12 percent year-on-year increase. The prompt monetization of development projects contributed to this higher sales volume.
The company’s earnings per share (EPS) also increased, rising to Rs. 143.5 per share from Rs. 95.31 per share in the previous year, reflecting the growth in net profit.
On the stock exchange, MARI’s share price closed at Rs. 1,547.9, a decrease of 0.41 percent or Rs. 6.37, with a turnover of 99,196 shares on Thursday.
