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Hike in wellhead price of Mari gas field drives MARI’s profitability

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January 24, 2020 (MLN): For the last five years, Mari Petroleum Limited (MARI), the second largest producer of natural gas has seen its revenue and profits grow. This trend continues as the company has posted a robust increase of 33% YoY in its net profits to Rs 14.74 billion with an Earning per share (EPS) of Rs 110.55 for the half year ended on December 31, 2019.

In the corresponding period preceding year, company’s net profits locked in at Rs 11 billion with an EPS of Rs 82.89 per share. The YoY growth in company’s profitability during the period mentioned above came on the back of 44% YoY hike in wellhead price of Mari gas field.

Furthermore, Rupee depreciation, increase in Arab Light prices, jump in oil production in the second quarter of FY20 and 3.9 times YoY higher financial income due to healthy return on short-term investment further helped in uplifting company's profitability.

On the revenue front, less incremental gas production from MARI field during 2QFY20 put a limit on company’s net revenues as it only surged by 19% YoY.

Meanwhile, Exploration costs of the company during the period remained high as it went up by 41.5% YoY to Rs 3.5 billion on account of ongoing activity in Ghauri block (Miraj-1 field) and seismic activities.

Alongside financial results, the Board of Directors of the company announced first interim cash dividend of Rs 4.10 per share i.e. 41% for the period mentioned above.

 

Financial Results for the Half year ended on December 31, 2019 ('000 Rupees)

 

Dec-19

Dec-18

% Change

Gross sale to customers

 68,674,646

 58,114,877

18.17%

Gas development surcharge

 (8,906,638)

 (4,002,276)

122.54%

General sales tax

 (6,722,741)

 (5,976,258)

12.49%

Excise duty

 (909,522)

 (982,765)

-7.45%

Gas infrastructure development cess

 (17,584,662)

 (18,166,954)

-3.21%

Sales- net

 34,551,083

 28,986,624

19.20%

Royalty

 4,354,236

 3,684,925

18.16%

 

 30,196,847

 25,301,699

19.35%

Operating expenses

 (6,412,434)

 (5,656,617)

13.36%

Exploration and prospecting expenditure

 (3,511,795)

 (2,481,205)

41.54%

Other charges

 (1,517,389)

 (1,199,242)

26.53%

 

 (11,441,618)

 (9,337,064)

22.54%

 

 18,755,229

 15,964,635

17.48%

Other (expenses)/income

 161,142

 205,575

-21.61%

Operating profits

 18,916,371

 16,170,210

16.98%

Finance income

 2,562,016

 651,099

293.49%

Finance cost

 491,737

 385,881

27.43%

Profit before taxation

 20,986,650

 16,435,428

27.69%

Provision for taxation

 6,238,559

 5,377,306

16.02%

Profit for the year

 14,748,091

 11,058,122

33.37%

Earnings per share – basic and diluted (Rupees)

 

 

 

Earnings per ordinary share

110.55

82.89

33.37%

Distributable earnings per ordinary share

2.9

2.89

0.35%

 

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Posted on: 2020-01-24T15:52:00+05:00

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