Karachi, August 09, 2023 (PPI-OT): Mari Petroleum Company Limited

Earnings: Mari Petroleum Company Limited (MARI) announced it 4QFY23 result. The Company reported 4QFY23 earnings of PKR 15.84bn (EPS PKR 118.72), up by +2.8xy/y compared to PKR 5.60bn (EPS PKR 42.01) in the similar period last year. On quarterly basis, profitability is down by 4%y/y. This brings total FY23 profitability to PKR 56.13bn (EPS PKR 420.75), up by +70%y/y.

Dividend/Pay-out: The Company announced cash dividend of PKR 58.0/share along with the result bringing total cash pay-out to PKR 147/share for FY23.

Operating Performance: During the period under review, MARI reported +71%y/y increase in revenue during 4QFY23 on the back of PKR depreciation against greenback and higher oil/gas production. However, earnings growth was limited by higher other charges and lower oil prices. Exploration cost increased by +1%y/y to PKR 6.48bn during 4QFY23 likely owing to higher dry well expense. Operating expenses augmented by +96%y/y to PKR 10.93bn during 4QFY23 compared to PKR 5.58bn in the corresponding period last year. On quarterly basis, earnings dropped by 4%y/y mainly due to lower oil revenue, higher exploration cost and higher tax expense. Effective tax stood at 36.8% during 4QFY23 (3QFY23: 33.4%) compared to 55.5% in the same period last year bringing total effective tax rate for FY23 to 34.6% compared to 36.6% in the similar period last year.