MARI maintains profit despite 6% drop in topline

MG News | October 30, 2024 at 02:12 PM GMT+05:00

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October 30, 2024 (MLN): Mari Petroleum Company Limited (PSX: MARI)'s earnings in the first quarter of FY25 inched up 0.3%, with its profit after tax reaching Rs19.2 billion [EPS: Rs15.99].

According to the profit and loss account, MARI managed to maintain its profits despite a 6% drop in revenue to Rs45.3 billion, thanks to a substantial 44.34% growth in net finance income.

The company's royalty payments and share of loss from associates also declined this quarter, lessening the impact on profits.

However, operating and administrative expenses rose by 5.9% year-on-year.

The main expense burden was exploration and prospecting costs, which surged 67.58% to Rs3 billion in Q3 CY24.

During the period under review, other income dropped 0.4% to stand at Rs119.31m in Q1 FY25 as compared to Rs119.77m in SPLY.

On the tax front, the company paid a lower tax worth Rs9.9bn against the Rs13.05bn paid in the corresponding period of last year, depicting a decrease of 24.2%.

Unconsolidated (un-audited) Financial Results for quarter ended September 30, 2024 (Rupees in '000)
	Sep 24	Sep 23	% Change
Sales	45,297,231	48,205,730	-6.03%
Operating and administrative expenses	-8,067,085	-7,617,640	5.90%
Royalty	-5,521,601	-5,990,636	-7.83%
Other charges	-2,057,242	-2,250,754	-8.60%
Share of loss in associate	-209,186	-240,544	-13.04%
Provision Reversed / (Charged)	0	0	-
Other Income	119,312	119,767	-0.38%
Exploration and prospecting expenditure	-3,001,054	-1,790,804	67.58%
Net finance income	2,541,560	1,760,840	44.34%
Profit/ (loss) before taxation	29,101,935	32,195,959	-9.61%
Final tax / levies	-9,900,921	-13,052,523	-24.15%
Net profit/ (loss) for the period	19,201,014	19,143,436	0.30%
Basic earnings/ (loss) per share	15.99	15.94	-