Corporate results: Earnings of Mari Petroleum soar 88%

Company’s share price rose 2.15% in PSX trading

Our Correspondent October 25, 2016
This is company’s third consecutive discovery in Karak Block, Punjab. PHOTO: FILE

KARACHI: Mari Petroleum Company Limited’s profit soared 88% to Rs2.76 billion in the quarter ended September 2016 on the back of higher sales and lower exploration expenditure, according to a bourse filing on Tuesday.

The petroleum exploration company had earned a profit of Rs1.46 billion in the same quarter last year.

Earnings per share stood at Rs25.09 in July-September 2016 compared to Rs13.32 in the corresponding quarter in 2015.

Share price of the company rose 2.15%, or Rs21.28, to close at Rs1,007.07 with a volume of 153,750 shares at the Pakistan Stock Exchange.

Gross sales increased 15% to Rs26.02 billion in the Jul-Sept quarter from Rs22.56 billion in the same period last year.

After deducting gas development surcharge, general sales tax, excise duty and gas infrastructure development cess from gross sales, net sales stood at Rs7.26 billion, which were 40% higher than Rs5.17 billion in the corresponding period of previous year.

The exploration and prospecting expenditure fell 67% to Rs475.25 million against Rs1.44 billion last year. The massive decline in the exploration expenditure may be linked with sharply lower crude oil prices in world markets.

Exploration firms usually slow down their activities when crude oil is available at cheaper prices. A cut of 52% in finance cost at Rs206.28 million compared to Rs427.86 million in the previous year also supported the bottom line.

On the flip side, royalty payments increased 37% to Rs908.65 million in the Jul-Sept quarter as opposed to Rs661.74 million a year earlier.

Moreover, Mari Petroleum recorded other expenses at Rs37.01 million against other income at Rs286.50 million in Jul-Sept 2015.

Published in The Express Tribune, October 26th, 2016.

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