Mari Petroleum is an integrated exploration and production company with an 18% market share, being the third-largest gas producer in Pakistan with cumulative daily production of around 100,000 barrels of oil.
The company has announced its financial results for the first quarter ended on September 30th, 2019 (FY 2020).
The profit of the company surged 45.7% to Rs. 7.46 billion in the quarter, compared to a profit of Rs. 5.14 billion in the same period last year. The rise in profits was due to an increase in sales and growth in finance income as well as a higher exchange rate due to the devaluation of the rupee against the US dollar.
Earnings per share increased to Rs. 55.94 in the above period from Rs. 38.55 in the preceding year. The net sales of the company increased by 24.41% to Rs. 17.84 billion as compared to Rs. 14.34 billion in the preceding year.
According to Topline Securities, Mari Petroleum’s net sales increased primarily due to the increase in Mari field gas prices.
The finance income of the company increased nearly 5.7 times to Rs. 1.18 billion as compared to Rs. 175 million last year as the company has invested in high yield government bonds. The company also recorded other income of Rs. 289 million in the above period as compared to Rs. 119 million last year.
On the flip side, its exploration and prospecting expenditure rose 31.61% to Rs 2.04 billion compared to Rs. 1.55 billion in the previous year. The government of Pakistan has a shareholding in Mari Petroleum, with divestment plans on the cards.
Mari’s shares at the stock exchange were closed at Rs. 1036.60, up by Rs. 14.75 or 1.44% with a turnover of 75,040 shares on Tuesday.