January 09, 2025 (MLN): The Pakistan Credit Rating Agency (PACRA) has assigned initial entity ratings to Mari Energies Limited (PSX: MEL), reflecting its strong operational and financial position, with a rating of AAA (Long Term) and A1+ (Short Term).
Formerly known as Mari Petroleum Company Limited, Mari Energies is a key player in Pakistan's energy sector.
To note, Mari Petroleum Company Limited (PSX: MARI) has officially been renamed as Mari Energies Limited (MEL).
Specializing in the exploration, development, and production of hydrocarbons, Mari holds a reserve and resource base of 816 million barrels of oil equivalent (MMBOE), making it the second largest reserve holder in the country.
The Company plays a vital role in Pakistan’s energy ecosystem, contributing 29% of the country’s total natural gas production, making it the largest gas producer in the country.
This is anchored by its flagship asset, the Mari Gas Field, one of Pakistan’s largest gas reserves.
Mari’s operational efficiency is underscored by its exploration success, advanced reservoir management practices, and ability to quickly bring new discoveries on production, which resulted in an exceptional reserve replacement ratio of 423% in FY24.
The Company achieved a 7% increase in hydrocarbon sales, reaching 39.01 MMBOE, supported by a net daily production capacity of over 120,000 barrels of oil equivalent.
This operational excellence translated into record-high net sales of Rs181.8 billion, further complemented by finance income, delivering a profit of Rs77.3bn for the year.
With an equity base of Rs225bn and robust cash flows, the Company has solidified its financial stability, allowing it to meet future obligations and fund capital expenditures with minimal reliance on borrowings.
Mari’s strategic position in the energy chain is strengthened by its significant portfolio of development and production leases and exploration licenses, both directly and through non-operating joint ventures.
As part of its diversification strategy, the Company is expanding into international markets, marking a significant milestone with its participation in an offshore Block 5 in Abu Dhabi alongside leading Pakistani exploration and production companies.
This venture represents the first joint opportunity for Pakistani companies in the region.
Additionally, Mari has entered the mineral mining sector, exploring high-potential blocks for precious metals, and pursuing projects in, green hydrogen, CO2 management solutions, and advanced energy infrastructure.
To further its technological and business advancements, the Company has established Mari Technologies Limited, a wholly-owned subsidiary focused on data centers, cloud computing, and artificial intelligence.
In line with its diversified portfolio and growth trajectory, Mari has also renamed itself “Mari Energies Limited,” reflecting its broader focus on the evolving energy landscape.
Apart from its performance, ratings for the Company reflect its distinct ownership structure: Fauji Foundation holds a 40% stake, while the Government of Pakistan and Oil & Gas Development Company Limited (OGDCL) each own 20%.
This distinctive shareholding composition reinforces the Company’s stability and strategic positioning.
The governance structure, underpinned by tiered oversight, is aligned with best practices.
The Company’s leadership has been driving its advancement and progress, implementing strategic initiatives to embed growth, sustainability, and innovation into its operational framework.
Management remains committed to maintaining a largely debt-free capital structure, ensuring financial resilience and operational flexibility.
Going forward, Mari’s ability to strengthen its market leadership, diversify its portfolio, and effectively manage its overall risk profile will be critical to sustaining its long-term success.
Copyright Mettis Link News
Posted on: 2025-01-09T10:47:08+05:00
