August 08, 2024 (MLN): Mari Petroleum Company Limited (PSX: MARI) recorded a profit after tax of Rs25.66 billion [EPS: Rs192.35] in the second quarter of 2024, an increase of 62% over the profit of Rs15.84bn [EPS: Rs118.72] in the same period last year (SPLY).
Along with the results, the company announced a final cash dividend for the year ending June 2024 at Rs134 per share.
This is in addition to the interim dividend already paid at Rs98 per share.
The company also recommended issuing bonus shares for the year, of 800% (eight shares for every one share held) from the capital redemption reserve fund and the balance from revenue reserves.
The issuance of bonus shares is a reflection of increasingly strong balance sheet of the company with a view to grow and diversify further, it said in a stock filing on Thursday.
Following the result announcement, the company's stock surged 10% to Rs2,858.76.
During the whole year ending June 2024, the company posted a profit after tax of Rs77.29bn as against Rs56.13bn in the previous year, a growth of 38%.
The company posted strong financial and operational performance with hydrocarbon sales volume of 39.01 MMBOE in FY24, representing a 7% increase from the previous year.
Net sales rose 25% to Rs181.8bn. EPS for the year reached Rs579.4 per share.
Apart from contributing Rs84bn to the government exchequer, the company also helped the country to save over $2.7bn through oil and gas import substitution, it said.
During the period, new hydrocarbon discoveries were made at Shawal-1, Shewa-2, Maiwand X-1 and Jhim East X-1 (PPL-operated) exploratory wells.
The company expanded its exploration acreage by acquiring working interests in the Nareli (27.55%), Zarghun South (40%), and Kalchas South (44%) blocks.
The company’s 2P reserves at the end of FY24 stood at 704 MMBOE translating into a Reserves Replacement Ratio (RRR) of 423%.
The reserves and resources (2P+2C) stood at 816 MMBOE at the year end.
MARI also successfully concluded the appraisal program of Ghazij gas discovery during which four appraisal wells were drilled, tested, and put on test production.
Four development wells i.e. MD-20, HRL-124H in MPCL operated blocks, Adam-2 (PPLoperated), and Togh-2 (OGDCL-operated) were drilled, tested and put on production.
Shewa-2 well has been completed. The construction of early production facilities in Waziristan Block and SNGPL gas transmission pipeline are complete. Currently, pipeline hydro testing is in progress following which production startup is anticipated.
A five-year extension of Mari D&P lease was approved by the government, extending the company’s rights on the lease until November 2029 with an additional payment of 15% wellhead value.
Additionally, with the latest amendments in the Petroleum Policy 2012, the company now has the right to extend the lease until the field production remains commercially viable, it said.
Meanwhile, MPCL’s subsidiary Mari Mining Co. (Pvt) Ltd has been awarded two mineral exploration licenses in Chaghi district of Balochistan.
Moreover, the board of directors of the company has approved the formation of a subsidiary with a focus on Cloud Computing and Artificial Intelligence.
Copyright Mettis Link News
Posted on: 2024-08-08T14:43:22+05:00
