Mari Petroleum Posts Flat Earnings in First Quarter FY25 Amid Declining Sales and Increased Exploration Costs

Islamabad: Mari Petroleum Company Limited (MARI) reported its first quarter financial results for FY25, showing a Profit After Tax (PAT) of PkR19.2 billion, or an earnings per share (EPS) of PkR16.0. The company’s quarterly earnings remained largely flat year-over-year, supported by lower operating expenses and reduced tax provisions, which exceeded initial forecasts.

According to AKD Securities Limited, net sales for the quarter decreased by 6% year-over-year to PkR45.3 billion, primarily affected by a 5% increase in the domestic exchange rate, which contributed to a slight reduction in wellhead gas prices. Gas production was stable, estimated at 815 mmcfd compared to 818 mmcfd in the same quarter last year, while oil production rose by 8%, reaching 1.2 kbpd, based on data from the Pakistan Petroleum Information Service (PPIS).

Operating expenses rose by 6% to PkR8.1 billion. Additionally, finance income increased by 35% due to higher income yields and a rise in short-term investments, with cash and short-term investments reaching PkR75 billion, marking a 35% year-over-year increase. Exploration expenses grew significantly, totaling PkR3.0 billion, a 68% rise driven by ongoing drilling operations at the Spinwarm-1 well in North Waziristan. Other charges decreased by 9% to PkR2.1 billion.

The company benefited from a lower effective tax rate of 34% for the quarter, down from 40.5% in the same period last year, which contributed to its performance against initial expectations.

The post Mari Petroleum Posts Flat Earnings in First Quarter FY25 Amid Declining Sales and Increased Exploration Costs appeared first on Pakistan Business News.