MARI’s Profits Take a Dip, But Dividend Stays Steady

Mari Petroleum Company Limited (MARI) is set to announce its financial results for the quarter ending June 2025 (4QFY25) on August 8, 2025. Here’s what investors need to know.

Earnings drop despite slight sales growth

MARI’s profit after tax (PAT) for the latest quarter is expected to be Rs 13.7 billion, a 47% drop compared to the same period last year. That brings the Earnings Per Share (EPS) to Rs 11.4 for the quarter.

For the full year, FY25 EPS is estimated at Rs49.9, down from Rs64.4 last year, a 22% annual decline.

Why the dip?

• Lower production: Gas supplies to SNGP were reduced due to system issues.
• Sales were flat: Revenue rose just 2% YoY and dropped 11% QoQ.
• Higher royalty expenses: Payments to the government for using gas reserves surged significantly.
• Lower finance income: While slightly better than last quarter, income from financial assets dropped 34% YoY.

Exploration losses and costs

Exploration and prospecting costs also dragged down profits, reversing a positive gain in the same quarter last year. On the bright side, operating and admin expenses were down 16% YoY, helping cushion some of the blow.

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Dividend holds firm

Despite the earnings drop, MARI is still expected to announce a Rs 15 per share dividend, matching last year’s payout. This shows the company’s confidence in its financial stability, even during a tough year.

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Key numbers at a glance (4QFY25E):

• Net Sales: Rs 40.7 billion
• Profit After Tax: Rs 13.7 billion
• EPS: Rs11.4
• Dividend: Rs15/share
• Full-year Profit: Rs60 billion (↓22% YoY)

While the numbers might not look exciting at first glance, MARI’s steady dividend and cost control efforts suggest it’s navigating the challenges fairly well. With gas production and pricing stability expected in the coming quarters, investors will be watching closely for signs of a turnaround.

Source: Taurus Securities Limited

⚠️ 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 →