Karachi, April 25, 2022 (PPI-OT): Oil and Gas Exploration Companies – Mari Petroleum Company Limited

Earnings: Mari Petroleum Company Limited (MARI) announced it 3QFY22 result. The Company reported 3QFY22 earnings of PKR 10.89bn (EPS PKR 81.63), up by +57%y/y compared to PKR 6.96bn (EPS PKR 52.14) in the similar period last year. This brings total profitability for 9MFY22 to PKR 27.46bn (EPS PKR 205.84), up by +18%y/y, compared to PKR 23.36bn (EPS PKR 175.08) in the corresponding period last year.

Operating performance: During the period under review, MARI reported +56%y/y increase in revenue on the back of +65%y/y rise in average oil prices, PKR depreciation against greenback and higher gas production from Mari field. Oil production was down by 21%y/y largely owing to drop in production from Bolan East. However, Exploration cost increased by 98%y/y to PKR 1.87bn during 3QFY22 compared to PKR 0.95bn in the same period last year. Operating expenses increased by +28%y/y to PKR 4.45bn during 3QFY22 compared to PKR 3.48bn in the corresponding period last year. On quarterly basis, earnings increased by +46%y/y mainly due to heavy loss from associate booked in 2QFY22 on account of seismic activity cost incurred at offshore Block 5 in Abu Dhabi. Effective tax stood at 27.4% during 3QFY22 (2QFY22: 34.9%) compared to 27.7% in the same period last year bringing total effective tax rate for 9MFY22 to 30.5% compared to 29.0% in the corresponding period last year.