MARI reports highest-ever profit of Rs56.13bn in FY23

Mari Petroleum Company Limited (MARI), one of Pakistan’s largest E&P companies, posted its highest-ever profit of Rs56.13 billion in FY23, up 70% year-on-year (YoY), compared to profit of Rs33.1 billion in the same period last year (SPLY).

Its Board of Directors in a meeting held on Tuesday reviewed the financial performance of the company for the period ended June 30, 2023.

The board announced the final cash dividend for the year at 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%.

The company’s earnings per share (EPS) stood at Rs420.75 per share, against Rs247.84 per share in SPLY.

“The growth comes on the back of i) 61% YoY massive jump in wellhead price of Mari Gas Field, ii) stable gas production, and iii) 28% YoY Pak Rupee depreciation against the greenback,” said Arif Habib Limited (AHL),a brokerage house, in a note.

MARI’s net sales increased by over 53% to Rs145.77 billion as compared to Rs95.13 billion recorded in the previous year. Cost of sales jumped to Rs68.25 billion in FY23, as compared to Rs44.94 billion recorded in the previous year.

MARI’s gross profit stood at Rs77.52 billion in FY23, as compared to Rs50.19 billion, an increase of over 54%.

Meanwhile, the company’s finance income jumped from Rs4.48 billion to Rs9.08 billion, a yearly increase of over 102%.

The income before tax of MARI increased nearly 65%, clocking in at Rs85.85 billion as compared to Rs52.12 billion in same period last year.

MARI said that it has enhanced its production capacity, maintained low operating cost and has been able to grow its resource base and portfolio. Some of the key highlights are given below:

The company said it contributed Rs74 billion towards the government exchequer and over $3 billion foreign exchange savings.