Mari Petroleum reports profit of Rs77.3bn in FY24, announces 800% bonus shares and dividend

Mari Petroleum Company Limited (MARI), one of Pakistan’s largest E&P companies, posted a profit-after-tax (PAT) of Rs77.28 billion in 2024, up nearly 38% year-on-year (YoY) compared to PAT of Rs56.13 billion in the same period of the previous year.

Its Board of Directors (BoD) in a meeting held on Thursday reviewed the financial performance of the company for the period ended on June 30, 2024. During the meeting, the BoD announced a final cash dividend for the year at Rs134/- per share i.e. 1,340%.

This is in addition to the interim dividend already paid at Rs98 per share i.e. 980%. The recommended final dividend along with the interim dividend amounts to Rs232/- per share i.e. 2,320%.

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Moreover, the BoD also announced the issue of bonus shares for the year June 30, 2024, of 800% i.e. eight shares for every one share held, from the Capital Redemption Reserve Fund and the balance from Revenue Reserves.

“The issuance of bonus shares is a reflection of increasingly strong balance sheet of the company with a view to grow and diversify further,” said the company.

As per the latest financials, the company’s earnings per share (EPS) stood at Rs579.36 per share, against Rs420.75 per share in SPLY.

“Earnings come as a surprise for the market, especially the issuance of bonus shares,” market experts told Business Recorder.

MARI’s gross sales increased by over 25% to Rs204.6 billion as compared to Rs163.2 billion recorded in the previous year.

The E&P net sales in 2024 clocked in at Rs181.8 billion, up nearly 25% YoY.

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Cost of sales (including royalty and operating and administrative expenses) jumped to Rs58 billion in FY24, as compared to Rs44.66 billion recorded in the previous year.

During the period, MARI saw a significant decline of 19% in its exploration and prospecting expenditure, which clocked in at Rs12.9 billion in FY24, as compared to Rs16.01 billion in SPLY.

The company’s cost of finance increased over 61% YoY.

Meanwhile, MARI’s finance income jumped from Rs9.07 billion to Rs9.2 billion in FY24.

The income before tax of MARI increased nearly 29%, clocking in at Rs110.36 billion as compared to Rs85.84 billion in same period last year.

MARI said that apart from contributing Rs84 billion to the government exchequer, the company also helped the country to save over $2.7 billion through oil and gas import substitution.

The company’s share price hit the upper limit of Rs2858.76 after a 10% gain of Rs259.89 on Thursday.