April 29, 2024 (MLN): Mari Petroleum Company Limited (PSX: MARI) experienced a fall of 14% YoY in its profitability in the first quarter of 2024, earning a profit after tax of Rs14.12 billion [EPS: Rs105.88], compared to a profit of Rs16.43bn [EPS: Rs123.16] in the same period last year (SPLY).
Going by the results, the company's revenue rose by 27.5% YoY to Rs48.25bn as compared to Rs37.84bn in SPLY.
However, the cost of sales, which includes Royalty and Exploration and prospecting expenditure rose by 2.5x YoY, worsening the gross profit by 8.3% YoY to Rs26.92bn in Q1 2024.
The gross margins fell to 55.80% as compared to 77.56% in SPLY.
During the period under review, other income fell by 55.6% YoY to stand at Rs2.06bn in Q1 2024 as compared to Rs4.64bn in SPLY.
On the expense side, the company observed a rise in operating and administrative expenses by 73.2% YoY while other charges fell 34.2% YoY to clock in at Rs11.5bn and Rs1.19bn respectively during the review period.
The company’s finance cost increased by 58.7% YoY and stood at Rs715.65m as compared to Rs450.85m in SPLY, mainly due to higher interest rates.
On the tax front, the company paid a lower tax worth Rs1.27bn against the Rs8.22bn paid in the corresponding period of last year, depicting a decrease of 84.5% YoY.
Meanwhile, in the first nine months of FY24, the company has posted strong financial and operational performance with hydrocarbon sales of 29.93 MMBOE, showing a 13% increase compared with the same period of the last year.
The company has recorded net sales of Rs142bn and net profit of Rs51.6bn, representing 44% and 28% growth, respectively, over the comparative period.
EPS for the nine months reached Rs387.01 per share.
Exploration
Mari Petroleum made two gas discoveries at Maiwand X-1 (Block-28, Balochistan), and Shewa-2 (Waziristan Block, KP).
A gas discovery was also made at Jhim East X-1 (PPL-operated Shah Bandar Block, Sindh).
Subsequent to the period end, the company made a landmark oil discovery at Shawal-1 well (Mari Field, Sindh).
MARI has acquired Spud Energy’s entire 27.55% and 40% working interests in Nareli Block and Zarghun South D&PL (Balochistan), respectively, subject to regulatory approvals, and 44% working interest in Kalchas South Block (PunjabBalochistan) from Dewan Petroleum (Pvt) Ltd.
Appraisal & Development
The gas sales volume from the Sachal Gas Processing Complex in the Mari Field has reached ~108 MMSCFD, after the commissioning of the third Amine Sweetening Unit and the first turnaround of the plant.
Three appraisal wells (Mari Ghazij-2, 4 & 5) were successfully drilled and tested at Mari Field as part of the Ghazij Appraisal Program.
The third horizontal development well Mari 124H in HRL formation and development well MD-20 in Goru-B reservoir of the Mari Field were successfully drilled and tested.
Further, Adam-2 development well in the PPL-operated Hala Block and the Togh-2 development well in the OGDCL-operated Kohat Block were successfully drilled and tested.
The construction of early production facilities at the Shewa-1 site in the Waziristan Block is complete.
The completion of the SNGPL pipeline is awaited for the production commencement.
Mineral Exploration
Mari Petroleum's subsidiary, Mari Mining Company, has been offered two mineral exploration licenses in the Chagai District of Balochistan, for which necessary approvals/formalities are underway.
| Unconsolidated (un-audited) Financial Results for quarter ended March 31, 2024 (Rupees in '000) | |||
|---|---|---|---|
| Mar 24 | Mar 23 | % Change | |
| Sales | 48,247,456 | 37,838,032 | 27.51% |
| Cost of sales | (21,326,996) | (8,490,333) | 151.19% |
| Gross Profit/ (loss) | 26,920,460 | 29,347,699 | -8.27% |
| Operating and administrative expenses | (11,498,855) | (6,640,954) | 73.15% |
| Share Of Profit / (Loss) | (185,964) | (447,148) | -58.41% |
| Other Income | 2,063,006 | 4,643,982 | -55.58% |
| Other Charges | (1,186,026) | (1,801,934) | -34.18% |
| Finance Cost | (715,654) | (450,853) | 58.73% |
| Profit/ (loss) before taxation | 15,396,967 | 24,650,792 | -37.54% |
| Taxation | (1,272,604) | (8,221,268) | -84.52% |
| Net profit/ (loss) for the period | 14,124,363 | 16,429,524 | -14.03% |
| Basic earnings/ (loss) per share | 105.88 | 123.16 | – |
Amount in thousand except for EPS
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Posted on: 2024-04-29T09:45:58+05:00
