Karachi, August 8, 2024 – Mari Petroleum Company Limited announced on Thursday that it achieved its highest-ever annual earnings for the fiscal year 2023-24, marking a significant milestone in the company’s history.
Research analysts at Topline Securities Limited reported that Mari Petroleum recorded an impressive net profit of Rs 77 billion for FY24, translating to an Earnings Per Share (EPS) of Rs 579.36. This represents a 38% increase compared to the previous fiscal year.
In the fourth quarter of FY24 (4QFY24) alone, Mari Petroleum posted a profit of Rs 26 billion, with an EPS of Rs 192.34, reflecting a remarkable 62% year-on-year growth. The better-than-expected performance was driven by a reversal in exploration costs and a reduction in tax expenses.
In addition to these robust financial results, the company declared a final cash dividend of Rs 134 per share for 4QFY24, bringing the total dividend for FY24 to Rs 232 per share. This equates to a payout ratio of 40%, an increase from the 35% payout ratio recorded in FY23. Furthermore, Mari Petroleum announced an 800% bonus (eight shares for every one share held), further rewarding its shareholders.
Despite these gains, the company experienced a 15% year-on-year and 17% quarter-on-quarter decline in net sales, amounting to Rs 40 billion in 4QFY24. This decline was primarily due to a reduction in gas production during the quarter, exacerbated by the closure of a fertilizer plant for approximately 55 days. However, on a full-year basis, net sales increased by 25% year-on-year, with hydrocarbon sales volume reaching 39.01 MMBOE, a 7% year-on-year increase.
Royalty expenses were reported at 11.4% of sales in 4QFY24, with the full-year figure at 12.2%, consistent with historical averages. Notably, the company recorded a reversal of Rs 5.9 billion in exploration costs in 4QFY24, compared to an expense of Rs 6.5 billion in the same quarter the previous year. For the full year, exploration costs totaled Rs 12.9 billion, a 19% decrease year-on-year.
The company’s effective tax rate for 4QFY24 was 20%, a significant reduction from the 37% recorded in 4QFY23. For the full year FY24, the effective tax rate stood at 30%, compared to 35% in FY23.
Additional key developments include a five-year extension of Mari Petroleum’s Development and Production (D&P) lease, approved by the government, extending the lease rights until November 2029 with an additional payment of 15% of the wellhead value. Moreover, Mari Petroleum’s subsidiary, Mari Mining Co. (Pvt) Ltd, was awarded two mineral exploration licenses in Chaghi district, Balochistan. The Board of Directors also approved the formation of a new subsidiary focused on Cloud Computing and Artificial Intelligence, signaling the company’s commitment to innovation and diversification.