Islamabad: Mari Petroleum Company Ltd disclosed its financial results for FY24 today, showing significant growth and laying out ambitious plans for the coming years. The company reported a 38% increase in profit after tax, reaching PKR 77.3 billion with an earnings per share of PKR 64.4. Additionally, Mari Petroleum announced a final cash dividend of PKR 134 per share, culminating in a total FY24 payout of PKR 232 per share, alongside an 800% bonus issue.
According to AKD Securities Limited, the company’s net annual production surged by 18% year-over-year, totaling 39 million barrels of oil equivalent (mmboe). This growth is primarily attributed to increased gas and oil outputs, which stood at 801 million cubic feet per day and 1,205 barrels per day, respectively, during FY24. Mari’s 2P hydrocarbon reserves also saw significant growth, reaching 704 mmboe, up from 577 mmboe in FY23, with substantial contributions from the Ghazij, Shawal, and HRL fields.
During the fiscal year, Mari drilled 12 wells, including notable exploratory wells like Maiwand X-1, Bolan West-1, and Spinwam-1, and five appraisal wells, four of which were in the Ghazij field and one in Shewa-2. The company’s HRL pressure enhancement facility is nearing completion of its first debottlenecking phase, a critical project for maintaining necessary gas pressure levels to fertilizer plants.
Other developments include the completion of work at Shewa-2, now awaiting pipeline completion by SNGPL. In response to production delays caused by disputes with local tribes, a management committee with Government of Pakistan officials has been established to address these issues. The Shawal-1 well, tested at 1,000 barrels per day, is now connected to production facilities, with output expected soon, and plans for a second development well, Shawal-2, in FY25.
The Ghazij field has seen the addition of five wells now producing a cumulative 30 million cubic feet per day of gas, with two more wells currently in the testing phase. Furthermore, Mari’s Development and Production lease has been renewed for an additional five years until November 2029, which will increase the royalty payments by 15% from the wellhead value.
Mari has also expanded into mining with the incorporation of Mari Mining Company in July 2023 and acquiring three exploration leases. Under a tri-party Gas Supply Agreement with Engro and SNGPL, the company has reported improved revenue recovery, especially following recent gas price hikes which have enhanced collection rates from the Sui companies.
Management is currently finalizing shareholder details and plans to release withheld bonus shares soon. The target price for Mari Petroleum by June 2025 is set at PKR 370 per share, with an expected dividend yield of 6% for FY25.