Karachi, October 21, 2022 (PPI-OT): Oil and Gas Exploration Companies – Mari Petroleum Company Limited

Earnings: Mari Petroleum Company Limited (MARI) announced it 1QFY23 result. The Company reported 1QFY23 earnings of PKR 12.72bn (EPS PKR 95.31), up by +40%y/y compared to PKR 9.10bn (EPS PKR 68.21) in the similar period last year. On quarterly basis, profitability is up by +2.3xy/y during 1QFY23.

Operating performance: During the period under review, MARI reported +54%y/y increase in revenue during 1QFY23 on the back of rise in average oil prices and PKR depreciation against greenback. However, earnings growth was limited by lower oil and gas production, higher taxation and operating cost. Exploration cost dropped by 21%y/y to PKR 1.38bn during 1QFY23 compared to PKR 1.75bn in the same period last year likely owing to lower prospecting expense. Operating expenses increased by +79%y/y to PKR 5.85bn during 1QFY23 compared to PKR 3.27bn in the corresponding period last year. On quarterly basis, earnings surged by +2.2xy/y mainly due to lower tax charge and exploration cost. Effective tax stood at 34.2% during 1QFY23 (4QFY22: 55.5%) compared to 30.3% in the same period last year.