MARI profit hits record Rs87.1bn in FY26
MARI posted record FY26 profit as hydrocarbon sales, reserves and resources reached historic highs, while management outlined major development plans for Ghazij and continued exploration.
MARI Energies conducted its annual general meeting on Friday to approve agenda items and review FY26 performance.
The company also discussed its operational performance and future growth outlook.
MARI posted record unconsolidated net profit of Rs87.1bn during FY26. Earnings per share rose to Rs72.5 from Rs54.25 during FY25.
The FY26 result included a one-off reversal of supertax during the year. The reversal followed a judgment by the Federal Constitutional Court.
MARI announced a total dividend of Rs27 per share for FY26. This included an interim dividend of Rs8.3 per share already paid.
Shareholders approved the remaining final dividend of Rs18.7 per share on Friday.
Operationally, MARI recorded its highest-ever hydrocarbon sales during FY26. Total hydrocarbon sales reached 41.28mn barrels of oil equivalent during the year.
The record production came despite periodic disruptions caused by SNGPL pipeline closures.
MARI also crossed a major reserve and resource milestone during FY26. Total reserves and resources exceeded 1bn BOE for the first time.
The company’s 2P reserves and 2C resources reached 1,029mn BOE by June 2026. Its reserves-to-production ratio consequently climbed to a record 21 years.
MARI added 157mn BOE of approved reserves during the financial year.
Management also highlighted a sharp reduction in hydrocarbon finding costs. Its five-year rolling average finding cost fell to $1.3 per BOE.
That compared with a finding cost of $12.8 per BOE five years earlier.
Management attributed the decline to the scale of recent exploration discoveries. These included discoveries at Ghazij, Spinwam, Shewa, Soho and Pateji.
A more disciplined drilling strategy also contributed to lower finding costs. Management said the approach was increasingly benchmarked against international industry practices.
Exploration activity produced two additional discoveries during FY26, strengthening MARI’s upstream portfolio. These included Shams-1 within the company’s producing Mari field.
The second discovery, Tebri-1, was made within the Kalchas exploration block. The Kalchas block is operated by United Energy.
MARI also expanded its exploration acreage substantially during the financial year. Management said 23 offshore blocks and several onshore blocks were awarded.
Its overall portfolio consequently expanded to 72 licences and 15 D&P leases. The combined portfolio now covers more than 150,000 square kilometres.
Ghazij remains an important component of MARI’s planned production growth programme. Management outlined development plans targeting production of 222mmcfd from the field.
Management indicated total development expenditure could reach about $1bn over five to six years. Fertilizer companies are expected to contribute around $250mn toward the planned expenditure.
MARI would bear the remaining estimated expenditure of approximately $750mn under the plan. Management cautioned that these figures remain estimates and should not be relied upon.
Current Ghazij and Shawal production stands at approximately 80mmcfd, management said. Around 25 wells have been drilled across the development area to date.
Additional wells are currently being drilled to raise production from existing levels. The company ultimately plans to reach the full allocated volume of 222mmcfd.
Management also provided details about operating costs at the Waziristan Block. Operating expenditure currently ranges between $3.50 and $4.00 per BOE.
Management described those operating costs as comparable with production costs in Saudi Arabia. Security expenses add another $0.30 to $0.40 per BOE.
Frontier discoveries, including Spinwam, also qualify for higher gas pricing under government policy. Management cited an additional gas price of $0.40/mmcfd under the new policy.
MARI is also discussing potential security-cost support with the federal government. Such support could help the company increase production from frontier exploration areas.Mari Petroleum, PPL announce gas production
The company’s future production trajectory will depend partly on planned Ghazij development. MARI is simultaneously expanding exploration across its enlarged onshore and offshore portfolio.
