ISLAMABAD (ABC)- The net sales of Mari Petroleum Company Limited (MARI) grew by 54%, profit-before-taxation by 73% and net profit by 57% in the first half of the ongoing fiscal year (1HFY24) compared to the corresponding period of the earlier fiscal, reports WealthPK.
In 1HFY24, MARI posted net sales of Rs105.3 billion compared to Rs68.2 billion previously due to higher applicable oil and gas prices. Furthermore, the company registered a net profit of Rs37.5 billion, resulting in a net profit margin of 35.6%. The robust performance was greatly boosted by higher production and sales of hydrocarbons.
| MARI- Half-yearly Financial Highlights | |||
| Particulars | Six months ended December 31 | Percentage
Change |
|
| 2022 2023 | |||
| Net sales | 68,204,564,000 | 105,328,954,000 | 54% |
| Profit before taxation | 36,152,334,000 | 62,697,638,000 | 73% |
| Net profit | 23,861,960,000 | 37,504,522,000 | 57% |
| Net profit margin | 35.0% | 35.6% | |
| Earnings Per Share | 178.87 | 281.14 | 57% |
MARI’s hydrocarbon sales rose 13% to Rs19.8 million barrels of oil equivalent in 1HFY24, driven by full capacity operation of its Sachal Gas Processing Complex and additional gas sales to Sui Northern Gas Pipelines Limited (SNGPL).
In comparison to the corresponding period of FY23, the oil exploration company showed a 54.4% increase in revenues, pushing sales from Rs68.2 billion to Rs105.3 billion. Likewise, the net profit cranked up by 57.1% from Rs23.8 billion to Rs37.5 billion in 1HFY24.
The company’s other income, which includes interest, dividend income and exchange gains, surged to Rs916 million.
During the period, MARI experienced a significant decline of 43% in its exploration and prospecting expenditure, which clocked in at Rs3.26 billion in 1HFY24 compared to Rs5.72 billion in 1HFY23, WealthPK reported.
As per the latest financials, the company’s earnings per share (EPS) stood at Rs281.14 against Rs178.87 in 1HFY23.
MARI’s market capitalisation crossed $1 billion mark on December 11, 2023, which was identified as a key achievement.
Financial performance over last six years
The sales and net profit of MARI kept growing amazingly from 2018 to 2023. However, the company performed remarkably well during FY23, and delivered exceptional results by achieving the highest-ever sales revenue of Rs145.7 billion compared to Rs95.1 billion in FY22.
| MARI-Historical Financials (Rs in million) |
||||||
| Particulars | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
| Sales | 40,722 | 59,457 | 72,026 | 73,018 | 95,134 | 145,770 |
| Net Profit | 15,374 | 24,327 | 30,313 | 31,445 | 33,063 | 56,129 |
| EPS | 126.77 | 200.59 | 227.23 | 235.71 | 247.84 | 420.75 |
Higher oil prices and significant growth in finance income contributed to the notable improvement in profitability.
The company, resultantly, achieved a net profit of Rs56.1 billion for FY23, reflecting an increase of 70% compared to Rs33.06 billion in FY22. This translated into earnings per share of Rs420.75 in FY23 compared to Rs247.84 in FY22.
Profitability ratios over the six years
Profitability ratios provide insights into a company’s ability to generate profits relative to its revenue, assets, equity or other financial metrics.
The company witnessed fluctuations in its net profit margin over the six years. In FY23, the net profit margin was 38.51% compared to the previous year’s 34.75%, which indicates an increase in the company’s revenue.
| MARI- Profitability ratios (%) | ||||||
| Particulars | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
| Net profit margin | 37.75 | 40.9 | 42.09 | 43.06 | 34.75 | 38.51 |
| EBITDA margin to sales | 60.03 | 64.83 | 63.87 | 67.76 | 56.34 | 59.85 |
| Return on equity (ROE) | 46.78 | 46.87 | 38.68 | 30.14 | 26.84 | 37.51 |
| Return on capital employed (ROCE) | 44.06 | 46.87 | 38.68 | 30.14 | 26.76 | 37.33 |
Similar to the net profit margin, the trend for EBITDA to sales shows fluctuations over the years with a noticeable dip in 2022.
During the years under consideration, both return on equity and return on capital employed ratios increased in the first two years, followed by a decrease in 2020 and 2021, and then a slight increase in 2023.
Company description
Registered on Pakistan Stock Exchange with the symbol ‘MARI’, the company is the second-largest firm in the oil and gas exploration sector with a market capitalisation of Rs334.8 billion. Its top competitors include Oil and Gas Development Company Limited, Pakistan Petroleum Limited and Pakistan Oilfields Limited.
MARI’s key customers include fertiliser manufacturers, power generation companies, gas distribution companies and refineries. In addition to Mari Gas Field, it holds development and production leases as well as operatorship of exploration blocks and is also a non-operating joint venture partner with leading national and international exploration and production companies.