Insight Research has just released an update on Mari Petroleum’s recent quarterly results. Here are the important points from the earnings announcement:
Mari Petroleum (MARI PA) has announced its 3QFY24 result today, revealing a Profit After Tax (PAT) of PKR14.1bn (Earnings Per Share: PKR105.9) compared to PKR16.4bn (EPS: PKR123.2) in the same period last year, marking a decrease of 14% year-over-year (YoY). The result fell below expectations primarily due to higher-than-expected exploration costs. However, the Effective Tax Rate (ETR) of 8.3% partially offset this negative impact.
Despite the decline in profitability, Mari Petroleum experienced a notable increase in revenue by 28% YoY in 3QFY24. This surge can be attributed to higher gas offtakes from the MARI field, coupled with PKR devaluation. Overall, the company’s sales reached approximately PKR142bn in the first nine months of FY24, marking a substantial 44% YoY increase.
Mari Petroleum reported hydrocarbon sales of 29.9MMBOE in the first nine months of FY24, representing a 13% YoY growth. This indicates a positive trend in the company’s core operations despite challenges in profitability.
One notable increase was observed in exploration expenses, rising approximately 4.1 times year-over-year and 10.6 times quarter-over-quarter in 3QFY24. This surge may be attributed to an impairment loss on exploration assets along with higher exploration expenses. However, detailed accounts are awaited for further clarity on this matter.
The company experienced a significant decrease of 57% YoY in finance income during 3QFY24, possibly due to the absence of exchange gains recorded in the same period last year.
The Effective Tax Rate (ETR) for Mari Petroleum stood at 8.3% in 3QFY24, a substantial decrease from 33.3% in the same period last year. This decline is likely attributable to a one-off tax adjustment resulting from a depletion allowance case won by the Exploration & Production (E&P) industry.
| Mari (PKRmn) | 3QFY24 | 3QFY23 | 2QFY24 | YoY | QoQ | 9MFY24 | 9MFY23 | YoY |
|---|---|---|---|---|---|---|---|---|
| Net Sales (PKRmn) | 48,247 | 37,838 | 45,539 | +28% | +6% | 141,992 | 98,840 | +44% |
| Royalty (PKRmn) | 5,800 | 4,674 | 5,756 | +24% | +1% | 17,547 | 12,356 | +42% |
| Operating Expenses (PKRmn) | 11,499 | 6,641 | 7,022 | +73% | +64% | 26,139 | 16,178 | +62% |
| Exploration Costs (PKRmn) | 15,527 | 3,816 | 1,465 | +307% | +960% | 18,783 | 9,540 | +97% |
| Other Charges (PKRmn) | 1,186 | 1,630 | 2,137 | -27% | -45% | 5,574 | 4,174 | +34% |
| Operating Profit (PKRmn) | 14,292 | 20,905 | 29,954 | -32% | -52% | 74,922 | 55,833 | +34% |
| Finance Income (PKRmn) | 2,007 | 4,644 | 1,606 | -57% | +25% | 6,105 | 6,858 | -11% |
| Finance Cost (PKRmn) | 716 | 451 | 702 | +59% | +2% | 2,150 | 1,323 | +62% |
| Profit Before Tax (PBT) (PKRmn) | 15,397 | 24,651 | 30,501 | -38% | -50% | 78,094 | 60,802 | +28% |
| Taxation (PKRmn) | 1,273 | 8,221 | 12,141 | -85% | -90% | 26,466 | 20,512 | +29% |
| Profit After Tax (PAT) (PKRmn) | 14,124 | 16,430 | 18,361 | -14% | -23% | 51,628 | 40,291 | +28% |
| Earnings Per Share (EPS) | 105.9 | 123.2 | 137.6 | – | – | 387.0 | 302.0 | – |
| Dividends Per Share (DPS) | – | – | 98 | – | – | 98.0 | 89.0 | – |
In conclusion, while Mari Petroleum faced challenges in profitability and witnessed increased exploration expenses, it demonstrated strong revenue growth and maintained a lower effective tax rate during the period under review.
Disclaimer:
The information in this article is based on research by Insight Research. All efforts have been made to ensure the data represented in this article is as per the research report. This report should not be considered investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.
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