Mari Petroleum Reports a 62.5% Increase in Profits in First 6 Months of FY2019

Mari Petroleum Company Limited has reported its half-year results for the period that ended on December 31st 2018. The company reported a profit of Rs. 11.05 billion, up by 62.5% from Rs. 6.8 billion in the corresponding period last year.

The gross sales to the customers were stated at Rs. 58.11 billion, up by 22.12% from Rs. 47.58 billion in the same period last year.

The company posted a reduction in the gas development surcharge, i.e. 35%, to Rs 4.00 billion from Rs 6.22 billion. The reduction supported the sales revenue of the company. Net sales were stated at Rs 28.98 billion from Rs 18.01 billion.

The sequential growth for the period was driven on the back of improved oil and gas flows, Rupee’s devaluation against US Dollar and improved wellhead gas prices.

Earnings per share of the company increased to Rs. 91.18 from Rs. 56.20. The company also announced first Interim Cash Dividend of Rs. 4 per share i.e. 40%.

Acquisition of New Exploration Blocks

MPCL Board of Directors also approved the acquisition of two new blocks.

The Government of Pakistan had invited bids for 10 exploration blocks for grant of exploration rights. The two new blocks have been provisionally awarded to the company, for being the highest bidder, in the bidding round.

The company submitted bids for two blocks i.e. Wali West Block located mainly in Tribal Areas and Taung Block located in Sindh, based on their potential, with a combined minimum financial commitment of US$ 45.17 million and working interests:

  • Wali West Block: MPCL as Operator with 100% interest share;
  • Taung Block: MPCL as Operator with 60% interest share and Pakistan Oil Fields with 40% interest share.

The acquisition is subject to execution of Petroleum Exploration Licenses/Petroleum Concession & Joint Operating Agreements with respect to both the blocks and completion of related legal formalities.

MARI’S shares at the bourse were trading at Rs. 1,324, up by Rs. 49.73 or +3.90%, with a turnover of 13,860 shares on Wednesday.