Mari Energies Ltd Surpasses Earnings Expectations Despite Lower Annual Profits

Karachi: Mari Energies Ltd announced its fourth-quarter financial results for fiscal year 2025, reporting net profits after tax (NPAT) of 18.8 billion Pakistani rupees (PkR), equivalent to earnings per share (EPS) of PkR15.7. This represents a 27 percent year-on-year decline. The results exceeded analysts’ expectations, largely due to reduced effective tax rates during the quarter.

For the entire fiscal year, Mari Energies’ NPAT reached PkR65.1 billion (EPS: PkR54.3), marking a 16 percent decrease from the previous year. The company declared a final cash dividend of PkR21.7 per share, with a payout ratio of 40 percent, also reflecting a 16 percent decline from the prior year.

Net sales for the quarter increased by 12 percent year-on-year to PkR44.8 billion, driven by a rise in estimated gas output to 863 million cubic feet per day (mmcfd), up 4 percent from the same period last year. This growth was bolstered by increased production from the Mari D and P field and the initiation of flows from the Shewa well.

The company’s bottom line was affected by elevated royalty charges of PkR10.5 billion, a 130 percent year-on-year increase. This included an additional 15 percent royalty on the well-head value of the Mari D and P lease, effective from November 2024, leading to a full-year effective royalty rate of 20 percent.

Exploration expenses totaled PkR5.2 billion, contrasting with a reversal in the same period last year. Mari Energies continued drilling exploratory wells, including Soho-1 and Mari Ghazij CF-A1, during the period.

Finance income decreased to PkR2.5 billion, a 20 percent decline year-on-year, amid falling investment yields. Effective tax rates for the final quarter stood at 13.2 percent, with a full-year rate of 28 percent, compared to 30 percent the previous year.

AKD Securities Limited maintains a ‘HOLD’ stance on Mari Energies, with a target price of PkR670 per share by December 2025.