Mari Petroleum profit up by 3.37% in FY 2021
Due to a significant reduction in development and prospecting cost, Mari Petroleum company’s earnings after tax increased 3.73 percent to Rs31.4 billion in the fiscal year ending June 30, 2021. Mari Petroleum is also country’s largest oil and gas exploration company.
The Mari company made a profit after tax of Rs30.3 billion in the fiscal year 2019-20, according to a notice sent to the Pakistan Stock Exchange (PSX) on Thursday.
The Board of directors (BoD) of Mari Petroleum had approved financial results.
The share of Mari Petroleum company had witnessed an increase of Rs 8 per share on Friday and its price stood at Rs 1520 per share. Mari Petroleum’s earnings per share grew from Rs227.23 in FY20 to Rs235.71 in FY21.
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Along with the announcement of the results, the firm declared a final cash dividend of Rs75 per share, bringing the total payout for FY21 to Rs141. The oil and gas exploration company’s net sales climbed 1.3 percent year on year to Rs73 billion from Rs72 billion in the fiscal year 2019-20.
According to Arif Habib Limited analyst Muhammad Iqbal Jawaid, Mari Petroleum’s top line increased by 1% year over year due to a 17 percent and 8 percent increase in oil and gas production, respectively.
According to him, net sales fell in the fourth quarter of FY21 due to a decline in the wellhead price of the Mari gas field.
Operating and administrative costs hiked by 13% to Rs15 billion in FY21 from Rs13.3 billion in FY20.Exploration and prospecting spending, on the other hand, dropped 56% from Rs10.3 billion in FY20 to Rs4.5 billion in the current fiscal year.
He said that the drop was owing to the absence of dry wells during the year, compared to one dry well (Miraj-01) in the fiscal year 2019-20. The company’s finance income dropped 13.5 percent from Rs4.6 billion in FY20 to Rs3.9 billion in FY21.
Similarly, other revenues fell by 8% to Rs312 million. In FY20, the corporation received Rs340 million in this category.
According to an Arif Habib Limited analyst, the business earned Rs292 million in other income in the fourth quarter of FY21, compared to Rs60 million the previous year, due to higher income from a seismic unit.
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He said that Mari Petroleum recorded effective taxation of 27 percent “In 4QFY21, up from 19 percent in 4QFY20. Mari Petroleum’s stock decreased Rs5.98 during the day, closing at Rs1,511.95 on the Pakistan Stock Exchange, with 58,540 shares changing hands.
The cabinet has recently approved the removal of the cap on dividends’ distribution of Mari Petroleum Company Limited (MPCL). Earlier, the economic coordination committee (ECC) had also approved the removal of the cap on dividends’ distribution among shareholders.
According to working, petroleum division presented before economic coordination committee (ECC), the petroleum division had projected dividend payment until the financial year 2024 at Rs 600 million in line with former dividends’ formula with a cap which is 227 percent higher.
The petroleum division worked out a return to shareholders at a maximum rate of 45 percent on shareholders’ funds. This comprised of share capital and undistributed percentage return reserve.
After removal of the cap, the petroleum division had projected dividends’ payment of 1.964 billion for the financial year 2020-21 to 2024 registering an increase of 227 percent.
The assumed dividend rate is conservative estimates and the actual dividend could be higher. Mari Petroleum had made actual dividends of Rs 720 million to shareholders for the financial year 2015 to the financial year 2020.
