Mari Energy’s Profit Declines by 16% to Rs. 65.1 Billion in FY25

Mari Petroleum Company Limited (MARI) has announced its financial results for FY25, reporting a 16% year-on-year decline in earnings, with profits standing at Rs. 65.1 billion (EPS: PKR 54.25). The company had reported a profit of Rs. 77.24 billion in FY24. The company’s quarterly performance also reflected a drop, with profitability recorded at Rs. 18.8 billion (EPS: PKR 15.69), down 27% year-on-year. The decline has been attributed to the imposition of an incremental royalty on revenue from the Mari D&P Lease, according to Arif Habib Ltd. Despite the challenges, MARI declared a dividend per share (DPS) of Rs. 21.70 for the fourth quarter of FY25. The company’s sales for the year decreased by 3% year-on-year, settling at Rs. 177.1 billion. This was primarily due to a 5% reduction in the wellhead price of the Mari gas field and the appreciation of the Pakistani rupee against the US dollar. However, during the fourth quarter, net sales increased by 12% year-on-year, reaching Rs. 44.8 billion, supported by an 18% rise in oil and gas production and a 16% increase in royalty charges. Royalty charges for FY25 surged by 61% year-on-year, amounting to Rs. 35.6 billion, driven by the incremental royalty imposed on wellhead revenue. On a quarterly basis, royalty charges spiked by 130% year-on-year due to the same reason. Exploration costs also rose by 15% year-on-year to Rs. 14.9 billion, with the company recording exploration costs of Rs. 5.2 billion in the fourth quarter, compared to Rs. 5.9 billion in the same period last year. The company’s finance income increased by 8% year-on-year to Rs. 9.9 billion, supported by higher income on cash and cash equivalents. MARI’s cash reserves stood at Rs. 77 billion as of June 2025, compared to Rs. 78 billion in the previous year. In FY25, MARI added 110 million barrels of oil equivalent (BOE) to its 2P reserves, bringing the total reserves to 952 million BOE. The reserve replacement ratio stood at an impressive 278% for the year. The company also made significant hydrocarbon discoveries, including Spinwam-1, Soho-1, and Pateji, which collectively added 165.9 million BOE to its resources. Despite delays in production from the Waziristan Block due to higher RLNG curtailments, MARI achieved its highest-ever hydrocarbon production of 39.13 million BOE. Early production from the Waziristan Block commenced in March 2025, contributing 70 mmcfd of gas and 700 bopd of condensate. The company also diversified into the technology sector through its subsidiaries, Mari Technologies Limited and Sky47 Limited. Construction of a 5MW data center in Islamabad is ongoing, with progress on a second data center in Karachi proceeding as planned. In the mining sector, MARI’s subsidiary, Mari Minerals, began targeted drilling in EL-322 and EL-323 in August 2025.