FY18 was a prolific year for Mari Petroleum Company Limited as the company witnessed highest ever production rates and profits. And FY19 has started on a high note for the exploration and production firm. This does not come as a surprise as the E&P sector has been expecting the increase in oil prices and currency depreciation to lift the top-line and the bottom-line.
Oil prices have been up by almost 50 percent during the first quarter of FY19. And besides 15-17 percent rupee depreciation, Mari Petroleum also saw its production flows particularly of gas increase. The rise in gas production came from the incremental production above benchmark from the incentive gas pricing of Mari field. The firm’s net revenues for 1QFY19 were up by 53.6 percent year-on-year.
On the expenses side, operating expenses were higher in 1QFY19 by 43 percent, year-on-year due to high cost of production. Also, exploration and prospecting expenditure were significantly higher in 1QFY19 versus 1QFY18 most likely due to some dry well. Overall, earnings for Mari Petroleum were up by 42 percent, year-on-year.
Mari Petroleum Company Limited’s performance has consistently been above its peers. It plans to go global and has increased its exploration capex budget to $371mn for FY19 from $249mn in FY18 for aggressive exploratory efforts in Mari Field and other blocks. The firm has signed an MoU with MOL
Group of Hungary and a Polish oil and gas exploration company on strategic cooperation for increased collaboration and strategic cooperation. It has also announced a strategic cooperation initiative with Kuwait Foreign Petroleum Exploration Company (KUFPEC) to explore opportunities in both local and international upstream exploration and production.
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