August 09, 2023 (MLN): Mari Petroleum Company Limited (PSX: MARI) 's profitability surged by 69.76% YoY, clocking in its profit after tax at Rs56.13 billion [EPS: Rs420.75] as compared to a PAT of Rs33.1bn [EPS: Rs247.84] in FY22.
Along with the results, the company also announced a final cash dividend for the year ended June 30, 2023 of Rs58 per share i.e. 580%.
This is in addition to the interim dividend already paid at Rs89 per share i.e. 890%.
The recommended final dividend along with the interim dividend amounts to Rs147 per share i.e. 1,470%.
To note, this was the highest-ever PAT recorded by MARI.
Going by the results, the company's top line surged by 53.23% YoY to Rs145.77bn as compared to Rs95.13bn in the same period last year (SPLY).
Commissioning of Sachal Gas Processing Complex (SGPC) and its connectivity with SNGPL network via cross-country pipeline has resulted in the monetization of Goru-B discovery.
In addition, the HRL swing volumes project has created flexibility for the first time to divert undrawn volumes of fertilizer and power customers to SNGPL, thus optimizing production and sales. Hydrocarbon sales stood at 36.35 MMBOE.
Additionally, during the review period, other income inflated by 2.03x YoY to stand at Rs9.08bn in FY23 as compared to Rs4.48bn in SPLY.
On the expense side, the company observed a rise in exploration and prospecting expenditure by 46.52% YoY and operating and administrative expenses by 55.79% YoY to clock in at Rs16.01bn and Rs27.11bn respectively during the review period.
The management implemented conscious cost optimization measures in all operations and has been able to sustain an operating cost of around $2 per barrel of oil equivalent.
Moreover, the company’s finance costs increased by 81.14% YoY and stood at Rs1.77bn as compared to Rs48.24m in FY23, mainly due to higher interest rates.
On the tax front, the company paid a higher tax worth Rs29.72bn against the Rs19.05bn paid in the corresponding period of last year, depicting an increase of 55.98% YoY.
Mari's Achievements and Challenges in FY23
Ghazij-1 gas discovery in Mari D&PL added a new reservoir horizon in the existing Mari Field after a gap of 18 years and has opened a new play concept in mature basins across the country.
In addition, the company achieved a technological milestone by drilling its first-ever horizontal well (Mari-122H) in HRL Reservoir.
A second horizontal well (Mari 123H) has also been successfully drilled and put on production subsequent to year-end.
Five (05) new exploration blocks have been added to the Company's portfolio including the Kalchas South block.
The company's exploration portfolio now consists of 34 exploration licenses (16 added in the last 3 years).
MARI contributed Rs74bn towards the government exchequer and over $3bn foreign exchange savings.
Installation of Early Production Facilities (EPF) at Shewa (Waziristan) discovery in North Waziristan is in progress. Subject to the completion of the SNGPL pipeline, this project will be ready for production by Q1 2024.
Drilling of the Shewa-2 appraisal well is underway and in case of success, it will be connected to the Shewa-1 EPF facilities.
The company is working closely with GoP and its customers to reduce the circular debt being faced by the energy sector.
The company has also constituted an Environmental, Social, and Governance (ESG) Committee of the Board.
| Unconsolidated (un-audited) Financial Results for the year ended 30 June 2023 (Rupees in '000) | |||
|---|---|---|---|
| June 23 | June 22 | % Change | |
| Sales | 163,156,446 | 108,969,625 | 49.73% |
| Sales Tax & Excise Duty | (17,386,539) | (13,835,148) | 25.67% |
| Net Sales | 145,769,907 | 95,134,477 | 53.23% |
| Royalty | (17,548,455) | (11,999,913) | 46.24% |
| Operating and Administrative expenses | (27,111,724) | (17,402,533) | 55.79% |
| Exploration and prospecting expenditure | (16,016,913) | (10,931,573) | 46.52% |
| Other charges | (5,793,579) | (3,622,588) | 59.93% |
| Finance Income | 9,075,445 | 4,483,085 | 102.44% |
| Other expenses/Income | (362,655) | 48,235 | -% |
| Finance cost | (1,774,826) | (979,809) | 81.14% |
| Share of loss in associate | (390,022) | (2,613,070) | -85.07% |
| Profit before taxation | 85,847,178 | 52,116,311 | 64.72% |
| Provision for income tax | (29,718,467) | (19,053,300) | 55.98% |
| Profit after taxation | 56,128,711 | 33,063.011 | 69.76% |
| Earnings per share – basic and diluted | 420.75 | 247.84 | – |
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Posted on: 2023-08-09T09:43:07+05:00
