Mari Petroleum Reports Modest Profit in 2QFY22

Mari Petroleum Company Limited (MARI), on Monday, announced its financial results for 2QFY22, posting a net profit of Rs. 7.47 billion.

Mari’s net profit for 2QFY22 was up 2 percent on a year-on-year (YoY) basis. The company had posted a profit of Rs. 7.33 billion during the same period of the previous financial year. This took the earnings of 1HFY22 to Rs. 16.57 billion, showing a 1 percent increase compared to Rs. 16.40 billion in the same period of the previous financial year.

Net sales in 2QFY22 witnessed a jump of 15 percent YoY, clocking in at Rs. 21.69 billion against Rs. 18.85 billion in the same period last year, given 7 percent and 5 percent YoY growth in oil and gas production, respectively, tagged with Rupee depreciation of 8 percent YoY against the greenback.

On a cumulative basis, net sales ascended by 8 percent YoY, settling at Rs. 42.42 billion in 1HFY22, owing to 38 percent and 3 percent YoY growth in oil and gas production, respectively. The well price of Mari Gas Field dropped by 1 percent YoY.

The exploration cost declined by 50 percent YoY, to Rs. 895 million in 2QFY22 due to the lower cost of the dry well (Mari PKL South 01) compared to last year’s dry well (Sheen Dund-1). The total exploration cost during 1HFY22 stood at Rs. 2.64 billion, down by 13 percent YoY.

The company recorded other income of Rs. 161 million compared to other expenses of Rs. 3 million on account of higher income from Mari Seismic Unit. Other income during 1HFY22 stood at Rs. 179 million against other expenses of Rs. 510 million in 1HFY21.

The company recorded a share of loss in associate of Rs. 2.42 billion in 2QFY22, where a major portion came from Pakistan International Oil Limited (PIOL) while a smaller portion came from National Resources (Pvt) Limited (NRL).

The company booked effective taxation at 35 percent in 2QFY22 compared to 29 percent in 2QFY21.

Earnings per share of the company were reported at Rs. 56.00 compared to Rs. 54.98.