Mari Petroleum witnesses a 25% improvement in earnings during FY20

August 20, 2020 (MLN): Mari Petroleum Company Limited (MARI) has reported profits of Rs. 30.3 billion (EPS: 227.23) for the year ended June 30, 2020, i.e. 24.6% higher than the figures recorded in the last year.

The company also announced a final Cash Dividend for the year at Rs. 2.00 per share i.e. 20%. This is in addition to Interim Dividend already paid at Rs. 4.10 per share i.e. 41%.

According to a report by Arif Habib Limited, the net revenue of the company increased by 21% owing to a rise in the wellhead price of the Mari gas field and depreciation of the local currency against USD. It is interesting to note that the revenue increase despite more than a double increase in gas development surcharge.

Amongst the many costs of the company that increased during the year, the exploration and prospecting expenditure rose by 1.38x due to the acquisition of seismic data from Blocks-28.

Another interesting factor was the increase in finance cost by around 28%, that too despite a decline in the interest rates by 625 basis points.

Financial Results for the year ended June 30, 2020 (Rupees'000)

 

Jun-20

Jun-19

% Change

Gross sales to customers

126,847,608

117,542,103

7.9%

Gas development surcharge

(18,916,120)

(9,280,308)

103.8%

General sales tax

(12,766,944)

(12,098,286)

5.5%

Excise duty

(1,876,423)

(1,888,366)

-0.6%

Gas infrastructure development cess

(21,273,225)

(34,827,136)

-38.9%

Sales – net

72,014,896

59,448,007

21.1%

Royalty

(8,805,560)

(7,574,515)

16.3%

Operating expenses

(13,302,159)

(11,712,974)

13.6%

Exploration and prospecting expenditure

(10,257,639)

(4,308,006)

138.1%

Other charges

(2,698,227)

(2,435,811)

10.8%

Other income / (expenses)

340,001

326,087

4.3%

Finance income

4,973,709

1,733,298

187.0%

Finance cost

(985,576)

(767,752)

28.4%

Profit before taxation

41,279,445

34,708,334

18.9%

Provision for taxation

(10,966,572)

(10,381,246)

5.6%

Profit after taxation

30,312,873

24,327,088

24.6%

Earnings per share

227.23

182.36

24.6%

 

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Posted on: 2020-08-20T15:18:00+05:00

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