Mari Petroleum (MARI) has announced its highest-ever profit-after-tax (PAT) of Rs77 billion (EPS of Rs579.36) for the fiscal year 2024, marking an increase of 38% compared to the previous year’s Rs56.13 billion.Â
According to Topline Research, this exceeded industry expectations due to a reversal in exploration costs and lower tax expenses.
In the fourth quarter of FY24, the company posted a profit of Rs26 billion (EPS of Rs192.34), marking a 62% rise. The company declared a final cash dividend of Rs134 per share for 4QFY24, bringing the total dividend for FY24 to Rs232 per share. This results in a payout ratio of 40%, up from 35% in FY23.Â
Additionally, MARI announced an 800% bonus (eight shares for every one share held) from the Capital Redemption Reserve Fund and the balance from Revenue Reserves.
Mari’s Net sales declined by 15% year-on-year (YoY) and 17% quarter-on-quarter (QoQ) to Rs40 billion in 4QFY24, due to reduced gas production amidst a 55-day closure of a fertilizer plant. However, net sales increased by 25% YoY in FY24, with hydrocarbon sales volume reaching 39.01 MMBOE, up 7% YoY.
The company’s royalty expenses were 11.4% of sales in 4QFY24 and 12.2% for the full year, consistent with historical averages. It recorded a reversal of Rs5.9 billion in exploration costs in 4QFY24 compared to an expense of Rs6.5 billion in 4QFY23. For the full year, exploration costs were Rs12.9 billion, down 19% YoY.
The effective tax rate was 20% in 4QFY24, compared to 37% in 4QFY23. For the full year, the effective tax rate was 30%, down from 35% in FY23.
Other notable information includes a five-year extension of the Mari D&P lease, approved by the government, extending the company’s rights until November 2029 with an additional payment of 15% wellhead value. MARI’s subsidiary, Mari Mining Co. (Pvt) Ltd, has been awarded two mineral exploration licenses in Chaghi district, Balochistan.Â
The Board of Directors also approved the formation of a subsidiary focused on Cloud Computing and Artificial Intelligence.
