AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: Mari Energies Ltd (MARI) has reported an 18% increase in its quarterly earnings, reaching Rs15.69 per share in the fourth quarter of fiscal year 2025. This rise, driven largely by a significant decrease in the effective tax rate, has defied industry projections.
The company’s annual earnings for FY25 were recorded at Rs54.25 per share, marking a 16% decline from the previous year. The reduced effective tax rate, which dropped to 13% in the fourth quarter from 29% in the preceding quarter and 20% in the same quarter last year, played a crucial role in the company’s unexpected earnings performance.
A notable increase in royalty expenses was observed, with the percentage of net sales rising to 23% in the fourth quarter, compared to 11% in the corresponding quarter of the previous year. This increase is due to an additional 15% royalty imposed after the renewal of the Mari field.
Operating expenditures during the fourth quarter were reported at Rs9.4 billion, reflecting a 4% year-over-year decrease but a 12% increase from the previous quarter. The yearly decline is attributed to reduced hydrocarbon sales amid curtailment in re-gasified liquefied natural gas (RLNG) supply.
The company also reported a 26% year-over-year increase in profits from associates, reaching Rs629 million in the fourth quarter. This was attributed to an uptick in seismic acquisition activities.
Finance income rose by 42% quarter-over-quarter to Rs2.5 billion, owing to the company’s strong cash position and favorable exchange gains following the depreciation of the Pakistani Rupee from Rs280.40 to Rs283.76 per US dollar between March and June 2025.
Additionally, MARI declared a cash dividend of Rs21.7 per share for the fourth quarter, maintaining a payout ratio consistent with the previous fiscal year at 40%.
Despite these financial developments, industry analysts have maintained a ‘HOLD’ stance on MARI, noting that the company’s stock is currently trading at a price-to-earnings ratio of 11.4 times for FY25 and is expected to be 13.2 times for FY26.