MARI - Strong prospects, (AKD Daily, Mar 31, 2023)
MARI: Strong prospects
1HFY23 marked a phenomenal period for the MPCL, with weakening exchange rate alongside Arab light prices, providing a much needed impetus to the sector overall in face of
lackluster production (flood damages, annual fertilizer plant turnarounds).
According to the latest PPIS reserves data, MARI’s 2P reserves stood at 870MMBOE as of
Jun’22. Reserves of its largest asset—Mari field—are estimated to stand at 4.84TCF of
gas.
Assuming throughput from the field at ~750MMCFD going forward, the field could continue production for another ~18 years, despite 58% depletion.
As the company supplies most of its gas production to the fertilizer sector (~90% in FY22,
662mmcfd), it is shielded from circular debt related receivable buildups.
MARI is our top pick from the sector, with a Dec’23 target price of PkR2,900/sh on the
stock, offering upside potential of 90% over the last close
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
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