Islamabad: Mari Petroleum Company Limited (MARI) reported its first quarter financial results for FY25, showing a Profit After Tax (PAT) of PkR19.2 billion, or an earnings per share (EPS) of PkR16.0. The company’s quarterly earnings remained largely flat year-over-year, supported by lower operating expenses and reduced tax provisions, which exceeded initial forecasts.

According to AKD Securities Limited, net sales for the quarter decreased by 6% year-over-year to PkR45.3 billion, primarily affected by a 5% increase in the domestic exchange rate, which contributed to a slight reduction in wellhead gas prices. Gas production was stable, estimated at 815 mmcfd compared to 818 mmcfd in the same quarter last year, while oil production rose by 8%, reaching 1.2 kbpd, based on data from the Pakistan Petroleum Information Service (PPIS).

Operating expenses rose by 6% to PkR8.1 billion. Additionally, finance income increased by 35% due to higher income yields and a rise in short-term investments, with cash and short-term investments reaching PkR75 billion, marking a 35% year-over-year increase. Exploration expenses grew significantly, totaling PkR3.0 billion, a 68% rise driven by ongoing drilling operations at the Spinwarm-1 well in North Waziristan. Other charges decreased by 9% to PkR2.1 billion.

The company benefited from a lower effective tax rate of 34% for the quarter, down from 40.5% in the same period last year, which contributed to its performance against initial expectations.