Power portfolio

Mari Petroleum Company Limited (MARI) has announced its result for the second quarter of FY22, where the company posted the profit of Rs7.4 billion, translating into the earnings per share (EPS) of Rs56/share, up 1.9 per cent on a yearly basis.

The result is below the market expectations, mainly due to the share of loss from the associate company. In addition, the company announced a cash dividend of Rs62/share.

Mari Petroleum Company Limited is a public limited company, principally engaged in exploration, production and sale of hydrocarbons.

It has secured four blocks in the Bid Round 2020 and their petroleum concession agreements (PCAs) have been executed. The farm-in agreement with MOL Pakistan for the acquisition of significant working interest in Marsala Block has been executed and the deed of assignment is submitted to the government for approval.

The Offshore Block-05 in Abu Dhabi has been signed on August 31, 2021 between Adnoc and a consortium comprising Mari Petroleum, Pakistan Petroleum Limited (PPL), Oil and Gas Development Company (OGDC) and GEIPL. The consortium companies have established an independent company; Pakistan International Oil Limited (PIOL) at the Abu Dhabi global market with 25 per cent shareholding by each of the consortium members.

Following the award, the Mari Petroleum has subscribed to 2.5 million ordinary shares of the PIOL by paying $25 million.

Currently, it is working with other consortium members to finalise the work programme and the budget for this block so that it can be submitted to Adnoc for approval.

Mari Petroleum is an integrated exploration and production company, currently managing and operating Pakistan’s largest gas reservoirs (in terms of remaining reserves) at the Mari Gas Field, Daharki, Sindh.

With the 19 per cent market share, Mari Petroleum is the third largest gas producer in the country with the cumulative daily production of 100,000 barrels of oil equivalent.

The company’s exploration and production assets spread across all the four provinces of Pakistan. The company enjoys the highest exploration success rate of 70 per cent, much higher than the industry average of 33 per cent (national) and 25 per cent (international).

At the same time, it is the most cost-efficient E&P company in Pakistan with the lowest operating cost of around 10 per cent of gross sales.