Mari Petroleum Limited (MARI): 4QFY20 EPS at Rs53.1, down 6% YoY (In line with industry expectations)
- Mari Petroleum (MARI) has reported earnings of Rs53.1/share for 4QFY20, a decline of 6% YoY. The company also declared a final cash dividend of Rs2.0/share, taking full year dividend to Rs6.1/share.
- Decline in earnings is attributable to (1) decline in oil and gas flows by 10% YoY and 1% YoY respectively, and (2) increase in exploration costs by 429% YoY.
- Exploration costs came in higher-than-our expectations as we believe, the company has recorded a dry well Zarbab (from Hala Block), where company has a 35% stake. Last quarter, PPL recorded this as a dry well under its exploration cost. We await management guidance on this account for further clarity.
- Operating expenses clocked in at Rs3.5bn (or US$1.8/bbl), which is broadly same as last quarter’s US$1.84/ bbl.
- Finance income increased by 50% YoY due to increase in overall cash position of the company.
During FY20, earnings of the company increased by 25% YoY due to PKR depreciation of 17% which resulted in higher wellhead prices. Overall oil and gas production of the company declined by 8% YoY and 2% YoY respectively during the year.
Mari Petroleum Company Limited is a Pakistan-based exploration and production company. The Company is engaged in managing and operating Pakistan's gas reservoir at Mari Field, District Ghotki, Sindh. Its segments include Exploration and Production; Mari Seismic Unit, and Mari Drilling Unit. The Exploration and Production segment includes various upstream business activities. The Mari Seismic Unit segment includes two-dimensional (2D)/three-dimensional (3D) seismic data acquisition. The Mari Drilling Unit segment includes onshore drilling services. In addition to Mari Gas Field, it holds development and production leases over Zarghun South and Sujawal Gas Fields, and has operatorship of eight exploration blocks (Ziarat, Harnai, Sukkur, Sujawal, Karak, Ghauri, Peshawar East and Khetwaro). Its other products include crude oil, condensate and liquefied petroleum gas (LPG). Its exploration and production assets are spread across Pakistan in all four provinces.
Topline Securities is one of the fastest-growing brokerage houses in Pakistan. It has strong Equity Brokerage, Economic/ Equity Research, Commodity Trading and Corporate Finance & Advisory functions.
Topline Securities has been endowed with numerous awards by renowned international financial organizations. The highlights of which consists of the award for ‘Best Local Brokerage House of Pakistan’ by Asiamoney Brokers Poll (the largest Asia-focused equity services provider poll) in 2016 and ‘Best Equity Brokerage House’ by CFA Society Pakistan in 2015.
Previously, Topline Securities held the title for ‘Best Brokerage House’ for 4 consecutive years (2011-2014) by Asiamoney Brokers Poll. Other awards include the ‘Best Salesperson’ award by Asiamoney for 6 consecutive years (2011-2016), the ‘Arabia Fast Growth 500’ award and ‘Pakistan Fast Growth 100’ award in 2012 and 2013 by AllWorld Network.
JCR-VIS, a credit rating agency providing independent rating services in Pakistan has assigned initial rating of “A-2” for short term and “A” for long term to Topline Securities. Topline Securities is registered as Underwriter, Book Runner and Research Entity with Securities & Exchange Commission of Pakistan (SECP).
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