Mari Petroleum forms subsidiary with focus on cloud computing, AI

Mari Petroleum Company Limited (MARI), one of Pakistan’s largest E&P companies, is looking to step into the Information Technology (IT) sector with the formation of a subsidiary focusing on cloud computing and artificial intelligence (AI).

The E&P shared the development in its notice that accompanied its financial results to the Pakistan Stock Exchange (PSX) on Thursday.

“The Board of Directors of the company has approved formation of a subsidiary with focus on Cloud Computing and AI,” it said.

The IT sector has emerged among the potential areas of growth in the otherwise lackluster economy of Pakistan, with country’s information technology and IT-enabled services (ITeS) export remittances reaching an all-time high of $3.223 billion in the fiscal year 2023-24, a 24% growth as compared to $2.596 billion in 2022-23.

Meanwhile, in its filing on Thursday, the company informed that the government approved a five-year extension of Mari D&P lease, extending the company’s rights on the lease until November 2029 with an additional payment of 15% wellhead value.

“Additionally, with the latest amendments in the Petroleum Policy 2012, the company now has the right to extend the lease until the field production remains commercially viable,” it said.

MARI 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.

The BoD announced a final cash dividend for the year at Rs134/- per share i.e. 1,340%.

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 the increasingly strong balance sheet of the company to grow and diversify further,” said the company.