Mari Petroleum Posts Highest-Ever Profit of Rs. 77.3 Billion in FY24

Mari Petroleum Company Limited (PSX: MARI) Thursday announced its financial results for the financial year ended on June 30, 2024 (FY24), where it posted profit after tax (PAT) of Rs. 77.3 billion, up 38 percent of the previous year. According to Topline Securities, this is the highest ever yearly profit posted by the company. The company’s earnings per share (EPS) for the year under review came in at Rs. 579.36. In 4QFY24, MARI reported profit of Rs. 26 billion (EPS of Rs. 192.34), up 62 percent, which came higher than industry expectation due to reversal in exploration cost and lower tax expense. Alongside result, company declared final cash dividend of Rs. 134 per share in 4QFY24, taking full year FY24 dividend to Rs.232 per share. This translates into payout ratio of 40 percent in FY24 compared to 35 percent in FY23. The company also announced bonus of 800 percent (eight shares for every one share held). Net sales declined by 15 percent year-on-year (YoY) and 17 percent quarter-on-quarter (QoQ) to Rs. 40 billion in 4QFY24 due to fall in gas production during the quarter amidst closure of a fertilizer plant for around 55 days. However net sales increased by 25 percent YoY in FY24 where hydrocarbon sales volume clocked in at 39.01 MMBOE, up 7 percent YoY. Royalty expense clocked in at 11.4 percent of sales in 4QFY24 and full year FY24 at 12.2 percent in line with historical average. In 4QFY24, company recorded reversal of Rs. 5.9 billion in exploration cost compared to expense of Rs. 6.5 billion in 4QFY23. On full year basis, company recorded exploration cost of Rs. 12.9 billion down 19 percent YoY. Effective tax rate of company clocked in 20 percent in 4QFY24 compared to 37 percent recorded in 4QFY23. In full year FY24 effective tax rate clocked in at 30 percent vs 35 percent in FY23. *With input from Topline Securities Result Review.