Mari Energies Limited (MARI) announced its financial results today, reporting a profit after tax (PAT) of Rs. 26.44 billion for the first half of fiscal year 2025-26 (earnings per share: Rs.23.69), down by 6 percent year-on-year (YoY).
It also reported a PAT of Rs. 12.800 billion (earnings per share: Rs. 10.66) for the second quarter of fiscal year 2026 (2QFY26), reflecting a 15 percent YoY increase.
Alongside the results, the company announced an interim dividend, returning to its historical payout level of 35 percent, with a cash dividend of Rs. 8.30 per share.
According to Arif Habib Limited (AHL), earnings growth was driven by a 6 percent increase in oil production, a 20 percent decline in operating expenses, and a 50 percent year-on-year reduction in exploration costs.
Net sales in 2QFY26 increased 8 percent year-on-year to Rs. 44,770 million. Oil production rose 6 percent year-on-year to 1,298 barrels of oil per day, while gas production declined. Among MARI’s key gas fields, HRL production fell 2.8 percent year-on-year due to an annual turnaround activity at Fauji Fertilizer Company’s plant, which limited incremental volumes. Goru B remained stable, reflecting only two months of data, while Shewa field output surged 102 percent quarter-on-quarter to 53 million cubic feet per day.
Royalty charges in 2QFY26 rose 33 percent year-on-year to Rs. 10,648 million, mainly due to incremental royalty on Mari Development and Production Lease wellhead revenue. Exploration costs in 2QFY26 declined 50 percent year-on-year to Rs. 1,864 million and fell 16 percent quarter-on-quarter, driven by reduced prospecting expenditure.
Finance income stood at Rs. 1,001 million in 2QFY26, declining 56 percent year-on-year due to lower interest rates. The company recorded an effective tax rate of 35 percent in 2QFY26, compared with 25 percent in the same period last year.
MARI’s cash position declined to Rs. 60,811 million in December 2025 (June 2025: Rs. 76,895 million), while trade receivables increased to Rs. 88,765 million (June 2025: Rs. 86,581 million).
MARI is currently trading at forward fiscal year 2026 and fiscal year 2027 multiples of 15.8x and 11.8x price-to-earnings, and 3.2x and 2.7x price-to-book, respectively, offering dividend yields of 2.6 percent and 3.4 percent.
