Mari Petroleum says will invest Rs2.5bn in mineral mining subsidiary via equity injection

The Board of Directors of Mari Petroleum Company Limited (MARI) has approved an investment of up to Rs2.5 billion by the company in its subsidiary, Mari Mining Company (Pvt) Ltd (MMC), by way of equity injection.

MARI, one of Pakistan’s largest energy and exploration companies, shared the development in a notice to the Pakistan Stock Exchange (PSX) on Monday.

“The investment will be made by MARI in tranches spread over two years by subscribing to the right issue of MMC shares,” read the statement.

First oil discovery made in Mari D&PL

MMC is a wholly owned subsidiary of MARI, which was established in July 2023 to undertake mineral mining projects in Pakistan and to contribute to the growth of the mineral mining sector of the country.

In a separate notice, the company announced its financial results for the three-months ended on March 31, 2024.

The company, despite higher sales, posted a profit after tax of Rs14.12 billion, a decrease of 14% on a year-on-year basis.

Mari Petroleum reports profit of Rs37.51bn in 1HFY24

Its Board of Directors (BoD) in a meeting held on April 26 reviewed the financial performance of the company for the period ended on March 31, 2024.

As per the latest financials, the company’s earnings per share (EPS) stood at Rs105.88 per share, against Rs123.16 per share in SPLY.

MARI’s net sales increased by over 28% to Rs48.25 billion as compared to Rs37.84 billion recorded in the previous year. Cost of sales (including royalty and operating and administrative expenses) jumped to Rs17.3 billion in 3QFY24, as compared to Rs11.32 billion recorded in the previous year.

During the period, MARI saw a significant increase of 307% in its exploration and prospecting expenditure, which clocked in at Rs15.53 billion in 3QFY24, as compared to Rs3.82 billion in SPLY.

MARI’s gross profit stood at Rs13.52 billion in 3QFY24, as compared to Rs20.63 billion, a decrease of nearly 35%.

The income before tax of MARI decreased by 38%, clocking in at Rs15.4 billion as compared to Rs24.65 billion in same period last year.

During the period, the company made two gas discoveries at Maiwand X-1 (Block-28, Balochistan), and Shewa-2 (Waziristan Block, KP).

A gas discovery was also made at Jhim East X-1 (PPL-operated Shah Bandar Block, Sindh), read the statement.