Mari Petroleum’s H1 profit surges 57pc

KARACHI: Mari Petroleum Company Limited reported a 57 percent increase in its net profit for the first half of fiscal year 2024, boosted by higher production and sales of hydrocarbons.

The company posted a profit after tax of Rs37.5 billion, or Rs281.14 per share, for the six months ended Dec. 31, 2023, compared with Rs23.86 billion, or Rs178.87 per share, a year earlier, it said in a filing to the Pakistan Stock Exchange (PSX) on Monday.

The company also announced an interim cash dividend of Rs98 per share.

Mari's hydrocarbon sales rose 13 percent to 19.8 million barrels of oil equivalent (MMBOE) in the first half of FY24, driven by the full capacity operation of its Sachal Gas Processing Complex and additional gas sales to Sui Northern Gas Pipelines Limited (SNGPL).

The company's net sales increased 54 percent to Rs93.74 billion, while its royalties paid to the government rose 53 percent to Rs11.75 billion.

Mari's other income, which includes interest income, exchange gains and dividend income, surged 85 percent to Rs4.1 billion.

The company's tax expense more than doubled to Rs25.19 billion, reflecting the higher profitability.

During the period, MARI saw a significant decline of 43% in its exploration and prospecting expenditure, which clocked in at Rs3.26 billion in 1HFY24, as compared to Rs5.72 billion in SPLY.

“The 13% increase in production was driven by Sachal Gas Processing Complex coming at full capacity and additional gas sales to SNGPL,” the company said.

Mari, which operates the country's largest gas field, Mari Field, in Sindh province, made a gas discovery from the Kawagarh formation in its Shewa-2 well in Waziristan Block, and confirmed the extension of hydrocarbon play in the Lokhart and Hangu formations.