Mari Energies Posts Lower Annual Profit, But Beats Expectations in Final Quarter

Mari Energies Limited (MARI) has announced its financial results for the fourth quarter of FY25, reporting a net profit after tax of PKR 18.8 billion (EPS: PKR 15.7). This is 27% lower compared to the same quarter last year, but still better than what analysts had expected, thanks mainly to a lower tax charge.

For the full year, the company earned PKR 65.1 billion (EPS: PKR 54.3), down 16% YoY. Alongside the results, MARI declared a final cash dividend of PKR 21.7 per share (payout ratio: 40%), which is also down 16% from last year.

Key highlights from 4Q FY25:

• Sales Growth: Quarterly sales rose 12% YoY to PKR 44.8 billion, driven by a 4% rise in gas production to 863 mmcfd. This included increased output from the Mari D&P field and new flows from the Shewa well.
• Higher Royalty Costs: Royalty expenses jumped 130% YoY to PKR 10.5 billion due to a new 15% additional royalty on the Mari D&P lease, effective November 2024. This pushed the full-year effective royalty rate to 20% (vs 12.2% in FY24).
• Exploration Expenses: The company spent PKR 5.2 billion on exploration, as it drilled wells like Soho-1 and Mari Ghazij CF-A1.
• Lower Finance Income: Finance income dropped 20% YoY to PKR 2.5 billion due to falling investment returns.
• Lower Tax Rate: The Effective tax rate was 13.2% in 4Q, helping support earnings.

What does it mean?

While Mari Energies faced rising royalty costs and weaker finance income, strong gas production and a lower tax bill helped it end the year on a better note than expected. The new Shewa well, along with ongoing exploration activity, shows the company’s focus on sustaining production levels. However, the higher royalty burden will likely remain a challenge going forward.

Source: AKD Securities

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →

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