Higher gas flows, PKR devaluation elevate MARI’s net profits to Rs 23 billion

April 28, 2020 (MLN): Mari Petroleum Company Limited (MARI) has announced its financial results for 9MFY20 wherein the company has witnessed a significant increase in its net profits by 38% YoY to Rs 23.22 billion against net profits of Rs 16.80 billion in the same period of last fiscal year.

This has translated into earnings per ordinary share which clocked in at Rs 174.09 against Rs 126 in the aforementioned period.

According to the research note by IGI securities, the considerable increase in profitability is mainly attributable to PKR devaluation despite a drop in oil prices, higher gas production from the Mari field, and higher other income amid elevated mark-up income.

During the period under review, net sales of the company increased by 23% YoY to Rs 53.52 billion owing to PKR depreciation against USD and upsurge in gas production from the Mari field.

Meanwhile, exploration expenses surged by 61.4% YoY owing to higher seismic data acquisition from two blocks with no dry well cost incurred, the research highlighted.

More notably, the financial income of the company jumped to Rs 3.90 billion which is three times more compared to the same period last year on the back of higher interest rates on short term investments and bank deposits, revealed research report by Summit Capital.

Financial Results for the nine months ended on March 31, 2020 ('000 Rupees)

 

Mar-20

Mar-19

% Change

Gross sale to customers

 99,987,546

 86,993,735

14.94%

Gas development surcharge

 (14,234,340)

 (6,702,717)

112.37%

General sales tax

 (9,941,165)

 (8,847,950)

12.36%

Excise duty

 (1,397,386)

 (1,424,470)

-1.90%

Gas infrastructure development cess

 (20,885,879)

 (26,511,441)

-21.22%

Sales- net

 53,528,776

 43,507,157

23.03%

Royalty

 6,741,690

 5,521,773

22.09%

 

 46,787,086

 37,985,384

23.17%

Operating expenses

 (9,837,956)

 (8,985,225)

9.49%

Exploration and prospecting expenditure

 (5,738,798)

 (3,555,714)

61.40%

Other charges

 (2,275,278)

 (1,738,735)

30.86%

 

 (17,852,032)

 (14,279,674)

25.02%

 

 28,935,054

 23,705,710

22.06%

Other (expenses)/income

 400,411

 49,042

716.47%

Operating profits

 29,335,465

 23,754,752

23.49%

Finance income

 3,901,535

 1,222,132

219.24%

Finance cost

 734,830

 576,598

27.44%

Profit before taxation

 32,502,170

 24,400,286

33.20%

Provision for taxation

 9,277,389

 7,590,955

22.22%

Profit for the period

 23,224,781

 16,809,331

38.17%

Earnings per share – basic and diluted (Rupees)

 

 

 

Earnings per ordinary share

174.09

126

38.17%

Distributable earnings per ordinary share

4.43

4.28

3.50%

 

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Posted on: 2020-04-28T15:37:00+05:00

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