KARACHI: Mari Energies Limited (PSX: MARI) reported a 9.87% year-on-year decline in net profit to Rs46.53 billion for the nine months ended March 31, 2025, down from Rs51.63bn in the same period last year, as increased exploration activity and rising operating costs offset gains from reduced taxation. Earnings per share (EPS) declined to Rs38.75 from Rs43 in the corresponding period of FY24.
Net sales fell by 6.83% year-on-year to Rs132.29bn, reflecting reduced offtake and soft gas pricing. Gross sales also declined 6.33% to Rs149.63bn. However, the company ramped up its exploration and prospecting expenditure by a steep 71.5% to Rs7.12bn, a clear indicator of its intensified search for new reserves in line with its medium-term growth strategy.
Operating and administrative expenses surged 20.8% to Rs31.58bn, while royalty and wellhead charges shot up 43.4% to Rs25.16bn, partly due to increased production and changes in wellhead pricing mechanisms. Finance costs and other charges also added pressure—up 6.4% and 74.3% respectively.
As a result, profit before tax dropped 14.4% to Rs66.82bn. A 23.4% decline in income tax provision to Rs20.28bn helped soften the earnings blow.
Mari Energies has consistently been one of Pakistan’s most profitable oil and gas companies over the past decade, bolstered by its flagship Mari Gas Field and robust long-term offtake contracts. For FY23, the company posted a record profit of over Rs68 billion, with strong margins and stable volumes.
However, in recent quarters, the company has shifted toward a more exploration-intensive phase. Major projects such as the Bolan East and Ziarat Joint Ventures, along with seismic activities across Balochistan and Sindh, have pushed up costs. The company is also expanding its footprint in the offshore segment and transitioning toward enhanced hydrocarbon recovery initiatives—moves aimed at securing long-term reserves in a tightening domestic supply scenario.
While this aggressive reinvestment strategy may pressure near-term profitability, it is aligned with Mari’s strategic vision to evolve from a single-field operator to a diversified upstream player with a broader resource base.
