Mari Petroleum’s profit surges 47% to Rs8.47b

Mari Petroleum’s profit surged 47% to Rs8.47 billion during the quarter ended March 31, 2020, on back of robust sales and income from other than core oil and gas exploration business, according to a bourse filing on Tuesday.

The company’s profit had stood at Rs5.75 billion in the same quarter of the previous year, it reported to the Pakistan Stock Exchange (PSX). Earnings per share (EPS) of the oil company increased to Rs63.54 in the quarter under review from Rs43.11 in the corresponding quarter of last year.

Net sales of Mari Petroleum surged 31% to Rs18.97 billion compared to Rs15.52 billion in the same period of last year.

According to an Arif Habib Limited report, the increase was due to 11% year-on-year hike in wellhead price of Mari gas field and 10% surge in gas production. The finance income more than doubled to Rs1.34 billion compared to Rs571 million in the previous year.

On the flip side, the exploration and prospecting expenditure increased over 100% to Rs2.23 billion compared to Rs1.07 billion.

“The exploration cost swelled on account of acquisition of seismic data from two blocks during the quarter,” the report said. The finance cost of the company rose to Rs243 million in the quarter compared to Rs191 million in the same quarter of the last year.

Cumulatively in nine months (July 2019 to March 2020), the profit of the company soared 38% to Rs23.22 billion (earnings per share of Rs174.09) compared to Rs16.8 billion (earnings per share of Rs126) in the same period of the previous fiscal year.

“During 9MFY20, earnings improved due to increase in revenues by 23% year-on-year and interest income by 271%,” said Topline Securities analyst Shankar Talreja. During the day, Mari’s share price increased 2.46% or Rs25.04 and closed at Rs1,040.96 with 16,760 shares changing hands at the Pakistan Stock Exchange. 

Published in The Express Tribune, April 29^th, 2020.