MPCL reveals slender increase in fiscal year profits

August 26, 2021 (MLN): The annual net profits of Mari Petroleum Company Limited (MPCL) stood at Rs31.44 billion, registering a nominal increase of 3.7% YoY against a net profit of Rs30.31bn recorded in FY20.

This has translated into earnings per share (EPS) of Rs235.71 that also increased by around 4% YoY when compared to EPS of Rs227.23.

This slender increase in profitability is attributable to a 17% and 8% YoY surge in oil and gas production, respectively. However, the wellhead price of Mari Gas Field plummeted by 10% YoY, as per a report by Arif Habib Limited.

According to the financial results sent to PSX, the net sales edged higher by 1.4% YoY to stand at Rs73bn while royalty expenses jump by around 6% YoY in the fiscal year 2020-21.

Despite a decline in the policy rate, the finance cost of the company surged by 2.31x YoY to Rs1.31bn. However, the finance income went down by 13.5% YoY to Rs3.94bn on account of the lower interest rate.  The company also incurred Rs47mn as a share of loss in associate during the period under review.

Meanwhile, the exploration cost witnessed a 55.7% decline that provided some cushion to net income.  The company undertook seismic activities at Block-28 and Taung Block during 4QFY21, the report added.

In conjunction with financial results, the company offered a final cash dividend for the year ended June 30, 2021, at Rs75 per share i.e., 750%.

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