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HomeEquityMARI declares 5% rise in profits, payout of Rs124/sh

MARI declares 5% rise in profits, payout of Rs124/sh

August 4, 2022 (MLN): Mari Petroleum (PSX: MARI) has announced its financial results for FY22, wherein the bottom-line of the company saw a meagre increase of 5% YoY, to Rs33 billion, translating into an EPS of Rs247.8 when compared with the same period last year in which net profits were recorded at Rs31.4bn (EPS: Rs235.7).

Alongside financial results, the company announced a cash dividend of Rs62 per share. This was in addition to the interim dividend of Rs62 paid already, bringing the total cash dividend to 50% of the net profits to Rs124 per share i.e., 1240%.

The increase in profitability is attributed to higher gas flows particularly from MARI HRL, increased oil and gas prices, and higher dollar indexation.

The company's natural gas production during the period increased by 5%, while crude oil and condensate production remained steady, which translated into the highest-ever total production of 36.91 MMBOE. This equates to a net daily average production of 101,109 boepd, which is above the 100,000 boepd mark for the very first time.

The net revenues of the company went up by 30.3% YoY to Rs95bn, however, the impact was partially offset by higher operating and exploration expenses.

The company’s operating and administrative costs grew by 16% YoY while exploration and prospecting expenses took a massive jump of  140.6% YoY given the company’s aggressive plans to add more reserves besides attaining sustainability of existing flows. The company also incurred one dry well in 4QFY22 at Mian Miro Deep-1.

The company booked a share of loss in associate of Rs2.6bn due to operating expenses of Pakistan International Oil Limited (PIOL). To highlight, in 2QFY22 MARI booked loss of Rs2.4bn due to expenses incurred for seismic purchase and signatory bonus related to the investment made in PIOL.

Nevertheless, enhancement in production, greater financial discipline and better prices drove MARI's profit before tax to the highest ever Rs52.1bn, which is 18.6% higher than last year's results.

Moreover, the company paid Rs 19.1bn as taxes which includes the provision for super tax of Rs 5.2bn, which has resulted in an increased effective tax rate of 36.7% compared to 28.4% in FY21.

During the period, MARI has expanded its portfolio internationally and acquired exploration rights for Abu Dhabi's Offshore Block 05 as part of a consortium that included MPCL, PPL (Lead), OGDCL and GHPL, with 25% shareholding by each member.

To highlight, Offshore Block 5 covers an area of 6,223 square kilometres and is located 100 kilometres northeast of Abu Dhabi city.

Financial Results for the Year ended on June 30, 2022 ('000 Rupees)

 

Jun-22

Jun-21

% Change

Gross sale

               108,969,625

          82,692,664

31.78%

General sales tax

               (11,788,450)

          (7,668,767)

53.72%

Excise duty

                 (2,046,698)

          (2,005,626)

2.05%

Sales- net

                 95,134,477

          73,018,271

30.29%

Royalty

               (11,999,913)

          (9,315,126)

28.82%

Operating and administrative expenses

               (17,402,533)

       (15,039,680)

15.71%

Exploration and prospecting expenditure

               (10,931,573)

          (4,543,689)

140.59%

Finance cost

                     (979,809)

          (1,310,476)

-25.23%

Other charges

                 (3,622,588)

          (3,082,462)

17.52%

 

               (44,936,416)

       (33,291,433)

34.98%

 

                 50,198,061

          39,726,838

26.36%

Other income/(expenses)

                         48,235

                311,971

-84.54%

Finance income

                   4,483,085

            3,940,536

13.77%

Share of loss in associate

                 (2,613,070)

                (47,982)

5345.94%

Profit before taxation

                 52,116,311

          43,931,363

18.63%

Provision for taxation

               (19,053,300)

       (12,486,454)

52.59%

Profit for the year

                 33,063,011

          31,444,909

5.15%

Earnings per share – basic and diluted (Rupees)

Earnings per ordinary share

                         247.80

                  235.71

5.13%

Copyright Mettis Link News

Posted on:2022-08-04T15:19:45+05:00

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