February 18, 2021 (MLN): Mari Petroleum Company Limited (MPCL) has announced financial results of the 1HFY21, wherein the bottom-line of the company expand by 11% YoY to Rs 16.4 billion (EPS: Rs 3.06/sh) compared to the profits of Rs 14.7 billion (EPS: Rs 2.9/sh) in the corresponding period last year.
Alongside results, the company also announced a cash dividend of Rs 6 per share i.e. 60%.
The growth in profitability can be attributed to higher production and PKR depreciation. However, it constrained by higher operating expenses, drop-in finance income due to exchange losses, and lower mark-up income on deposits.
The revenues of the company jumped by 13% YoY largely due to a decline in oil prices, PKR depreciation and higher gas production from the Mari field as gas revenues contribute nearly 96% of the total net revenue.
On the costs front, Mari’s operating cost surged by 20% YoY while its Exploration expenses witnessed a decline of 14% YoY due to lower seismic activity during the period.
The effective tax rate of the company during the period remained the same at 30%, compared to the same period last year.
Financial Results for the Half-year ended on December 31, 2020 ('000 Rupees) |
|||
Dec-20 |
Dec-19 |
% Change |
|
Gross sale to customers |
44,376,708 |
39,251,897 |
13.06% |
General sales tax |
(4,151,778) |
(3,805,504) |
9.10% |
Excise duty |
(1,014,846) |
(909,522) |
11.58% |
Sales- net |
39,210,084 |
34,536,871 |
13.53% |
Royalty |
4,900,416 |
4,354,236 |
12.54% |
34,309,668 |
30,182,635 |
13.67% |
|
Operating expenses |
(7,679,904) |
(6,398,222) |
20.03% |
Exploration and prospecting expenditure |
(3,027,073) |
(3,511,795) |
-13.80% |
Other charges |
(1,651,987) |
(1,517,389) |
8.87% |
(12,358,964) |
(11,427,406) |
8.15% |
|
21,950,704 |
18,755,229 |
17.04% |
|
Other (expenses)/income |
15,197 |
161,142 |
-90.57% |
Operating profits |
21,965,901 |
18,916,371 |
16.12% |
Finance income |
1,750,544 |
2,562,016 |
-31.67% |
Finance cost |
(450,284) |
(491,737) |
-8.43% |
Profit before taxation |
23,266,161 |
20,986,650 |
10.86% |
Provision for taxation |
(6,864,965) |
(6,238,559) |
10.04% |
Profit for the period |
16,401,196 |
14,748,091 |
11.21% |
Earnings per share – basic and diluted (Rupees) |
|||
Earnings per ordinary share |
122.94 |
110.5 |
11.26% |
Distributable earnings per ordinary share |
3.06 |
2.9 |
5.52% |
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