MARI’s Q2 Profit Plummets by Almost 40%

Mari Energies Limited (PSX: MARI) saw its second quarter (2QFY25) profit dip by 39 percent on a year-on-year (YoY) basis and 42 percent on a quarter-on-quarter (QoQ) basis.  The company’s profit for 2QFY25 came in at Rs. 11.168 billion (EPS Rs. 9.30) compared to Rs. 18.361 billion (Rs. 15.29) reported in 2QFY24. The company did not announce cash dividend during the quarter contrary to expectations.  The company posted a bottom line of Rs. 30.396 billion (EPS: PKR 25.32) during 1HFY25 against Rs. 37.505 billion (EPS: PKR 31.24) in 1HFY24, down 19 percent YoY.   The topline in 1HFY25 decreased by 8 percent YoY, settling at Rs. 86.652 billion compared to Rs. 93.745 billion in the same period of last year due to 5 percent YoY decrease in the wellhead price of Mari gas field, and appreciation of the Pakistani rupee against US dollar by 2 percent YoY.   During 2QFY25, the net sales declined by 9 percent YoY, arriving at Rs. 41.354 million due to 5 percent YoY decrease in oil production and lower wellhead price of the Mari Gas Field. The exploration cost surged by 106 percent YoY to Rs. 6. 721 billion in 1HFY25 due to dry well incurred during the period followed by higher prospecting expenditure. Meanwhile, during 2QFY25, the exploration cost rose by 154 percent YoY to Rs. 3.720 billion due to dry well (Zarghun South-5) booked during the quarter.  The finance income came in at Rs. 5.676 billion in 1HFY25, up 39 percent YoY on the back of higher income on cash and cash equivalents due to increase cash position. Whereas, finance income during 2QFY25 settled at Rs. 2.311 billion, surging by 44 percent YoY.  The company booked effective taxation at 25 percent in 2QFY25 against 40 percent in 2QFY24.  With help from Arif Habib Limited’s result review of the company.