Karachi, April 22, 2022 (PPI-OT): Oil and Gas Exploration Companies – MARI: EPS to clock in at PKR 87.53 during 3QFY22, up by +68%y/y

Mari Petroleum Company Limited’s (MARI) board meeting is scheduled on 25th -Apr-22 to announce financial results for 3QFY22 where we expect the Company to report earnings of earnings of PKR 11.68bn (EPS PKR 87.53) during 3QFY22, up by +68%y/y.

This will bring total 9MFY22E earnings to PKR 28.25bn (EPS PKR 211.74), up by +21%y/y, against PKR 23.36bn (EPS PKR 175.08) same period last year.

We attribute growth in the earnings primarily on the back of PKR depreciation and 65%y/y rise in average oil prices. Further support to earnings is likely to emanate from higher gas production owing to increased flows from Mari field and exchange gains on the back of PKR depreciation.

Earnings to clock in at PKR 87.53/share during 3QFY22

Mari Petroleum Company Limited’s (MARI) board meeting is scheduled on 25th-Apr-22 to announce financial results for 3QFY22 where we expect the Company to report earnings of earnings of PKR 11.68bn (EPS PKR 87.53) during 3QFY22, up by +68%y/y, compared to profitability of PKR 6.96bn (EPS PKR 52.14) in the same period last year. On quarterly basis, earnings are expected to improve by +56%q/q largely owing to higher oil prices and PKR depreciation. This will bring total 9MFY22E earnings to PKR 28.25bn (EPS PKR 211.74), up by +21%y/y, compared to PKR 23.36bn (EPS PKR 175.08) in the similar period last year.

Earnings to bolster amid higher gas production from Mari field and upward revision in wellhead gas prices

We attribute growth in the earnings primarily on the back of PKR depreciation and 65%y/y rise in average oil prices. Further support to earnings is likely to emanate from higher gas production owing to increased flows from Mari field and exchange gains on the back of PKR depreciation. Exploration cost is likely to remain on the lower side amid no dry well incurred and lower seismic activity.