Mari Energies profit declines 39% in 2QFY25

Mari Energies Limited, formerly known as Mari Petroleum Company Limited (MARI), posted a profit-after-tax (PAT) of Rs11.17 billion in the second quarter of fiscal year 2025 (2QFY25), a decline of over 39% year-on-year (YoY) compared to PAT of Rs18.36 billion in the same period of the previous year.

Its Board of Directors (BoD) in a meeting held on Monday reviewed the financial performance of the company for the period ended on December 31, 2024. During the meeting, the BoD announced no cash dividend.

As per the latest financials, the company’s earnings per share (EPS) stood at Rs9.3 per share, against Rs15.29 per share in SPLY.

“The result was below expectations as the market was expecting earnings of Rs11-14/share,” said Topline Securities.

Furthermore, unlike street expectations of Rs10-15/share, the company did not declare any cash dividend for 1HFY25, it added.

The decline in profit was attributed to lower revenue and higher expenses incurred during the period.

MARI’s gross sales decreased by nearly 9% to Rs46.67 billion as compared to Rs51.11 billion recorded in the previous year.

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The E&P net sales in 2QFY25 clocked in at Rs41.35 billion, down over 9% YoY.

Cost of sales (including royalty and operating and administrative expenses) jumped to Rs23.1 billion in 2QFY25, as compared to Rs12.8 billion recorded in the previous year, an increase of over 80%.

During the period, MARI saw a massive increase of 154% in its exploration and prospecting expenditure, which clocked in at Rs3.7 billion in 2QFY25, as compared to Rs1.5 billion in SPLY.

The company’s cost of finance increased nearly 19% YoY.

Meanwhile, MARI’s finance income jumped from Rs1.6 billion to Rs2.3 billion in 2QFY25.

The income before tax of MARI decreased over 51%, clocking in at Rs14.9 billion as compared to Rs30.5 billion in same period of the previous year.

By operating the country’s largest gas reservoir at Mari Gas Field, Daharki, Sindh, Mari Energies Limited is the second largest natural gas producer.

A public limited company incorporated in Pakistan in 1984, MARI is an integrated oil and gas exploration and production company and around 70% exploration success rate, much higher than industry averages of around 33% national and 14% international.

Mari’s key customers include fertiliser manufacturers, power generation companies, gas distribution companies; and refineries.