FY23 has been a growth year for the oil and gas exploration and production sector – not because of gushing hydrocarbon production but the high oil prices environment and nose-diving domestic currency. All the major oil and gas E&P companies have posted growth in profits in the ongoing fiscal year; Mari Petroleum Company Limited (PSX: MARI) announced its financial performance for 9MFY23 with impressive growth in earnings of around 42 percent in net sales and an increase of 47 percent year-on-year in the bottom-line.
The topline growth in the latest quarter 3QFY23 stood at 49 percent year-on-year, while the bottom-line grew by 51 percent year-on-year.
Mari’s net sales clocked in at Rs110 billion for the 9MFY23, which was primarily driven by 27 percent devaluation of domestic currency. Also the revenues growth was driven by higher prices. There was a 61 percent year-on-year jump in wellhead price of Mari Gas Field. However, overall growth in production from Mari gas field during the period remained low due to annual turnarounds of EFERT and FFC plants that hampered the off takes from MARI field. Also, the leakages at FFC’s plant and damaged SSGC pipeline in Bolan area during the early months of FY23 were also factors for lower production volumes. On the other hand, the growth in the topline in 3QFY23 was not only driven by32 percent currency depreciation and rise in prices, but also the increase in oil and gas production of about 18 and 6 percent year-on-year.
Besides the topline growth, MARI’s bottomline also benefitted from significant growth in other income due to huge exchange gains.
On the expense side, the company witnessed hefty exploration and prospecting expenditure due three dry wells during 9MFY23 and higher seismic activity in 3QFY23. Also, the company benefitted from an overall decline in share of loss from associates.
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