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.

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