Mari Petroleum Company Limited (MPCL) achieved a noteworthy milestone, becoming the seventh listed company in Pakistan to surpass $1 billion in market capitalisation.
The surge in market value is attributed to the company’s robust performance in natural gas exploration, particularly highlighted by successful activities in the Mari Gas Field in Daharki, Sindh.
At the close of trading on the Pakistan Stock Exchange (PSX), MARI’s market value reached Rs288.95 billion ($1.02 billion), marking a significant accomplishment. The company’s share price witnessed a remarkable 43 percent increase since the end of June, reflecting increased exploration efforts in recent months.
In a strategic move, MARI announced the successful drilling and testing of a third horizontal development well, Mari-124H, in the Habib Rahi Limestone reservoir of Mari Gas Field. This achievement aligns with the Mari Field Revitalization Project, emphasizing effective delivery pressure management, sustainable gas production, and optimal reserves recovery to counteract depletion.
The well, reaching a total measured depth of 1,740 meters with a horizontal section length of around 750 meters, was tested at a rate of approximately 17 million standard cubic feet per day (mmscfd) of gas. Following completion, the well is slated for immediate regular production after the release of the drilling rig. The company is also exploring opportunities for additional horizontal wells in the future.
With a 70 percent exploration success rate, surpassing industry averages, MARI serves key sectors such as fertilizers, power generation, gas distribution, and refineries. The company’s advantageous position includes a low circular debt component, distinguishing it from other exploration and production companies facing substantial debts from state-owned gas utilities.
Notably, the fertilizer sector, constituting nearly 90 percent of MARI’s revenue, contributes to the company’s financial stability due to timely payments. Analysts also anticipate positive outcomes for MARI following the recent government-approved increase in gas tariffs, enhancing profitability and cash flows for energy companies.
MARI now stands alongside other major players in Pakistan’s corporate landscape, including OGDC, Colgate-Palmolive Pakistan Limited, Nestle Pakistan Limited, Meezan Bank Limited, PPL, and Pakistan Tobacco Company, which have crossed the $1 billion market cap milestone.Â
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