Mari Petroleum Company Limited (MPCL) - May 2023

Mari Petroleum Company Limited (MPCL) – May 2023

Research Team

Table of Contents

Mari Petroleum Company Limited (MCB) held a corporate briefing session today to discuss the financial performance of 3QFY23 and discussed its future outlook.

Key Highlights

• MPCL achieved highest-ever net sales and profit in 9MFY23. The management reported net sales of PKR 99 billion (46% up) and a profit of PKR 40 billion during the same period.
• EPS remained at PKR 302 in 9MFY23 that reflected a 47% increase year-on-year.
• Net assets of the Company increased by 22% while share price was down by 14.5% that was in line with the stock exchange.
• MPCL highlighted the successful acquisition of 15 new blocks in the last two years. Currently, the total number of blocks stands at 33 in FY23 while exploration acreage has been increased to 65,865
• The Gas Processing Contract for Shewa-1 at Bannu west was signed in April, 2023 and the expected first gas is likely in the seven months from mobilization. The MPCL’s stake stands at 55% in this project.
• At Mari Ghazji-1, the drilling successfully started in November, 2022. Besides, multiple wells are also planned to further appraise the Ghazji reservoir.
• Sachal Gas Processing Complex (SGPC) has been successfully commissioned and made gas sales of approximately 100 MMSCFD
• Company has paid a dividend of PKR 89.0 in FY23.
• Gravity & Magnetic Survey (G&M) and 2D seismic data has been completed by 69% and 76% respectively. The data acquisition at Nareli 2D seismic is likely to initiate soon.
• Exploratory wells at Hanna were spud in February, 20323 while Block 28 is expected to be complete by the end of May, 2023.
• In Waziristan Block, Rig move and rig up work is in progress at Appraisal Well North and drilling is expected by the end of May, 2023. At the second exploratory well, the expected spud-in is likely to begin in July, 2023 while Spinwam East is going to be completed by the end of April, 2024.
• Regarding CSR, MPCL made total contributions of PKR 8.2 billion in last five years, with PKR 1.5 billion alone in FY23

Future Outlook

• The management highlighted the key challenges and E&P industry is going through. The primary challenges include circular debt, security issues at Waziristan, supply-chain disruptions due to geo-political uncertainties and low levels of foreign exchanges.
• Going forward, the management shared the road ahead with multiple exploration, production, development and acquisition activities at Waziristan, Balochistan along with the mineral mining projects for the sake of diversification in the upcoming quarters.

Important Disclosures


This report has been prepared by Chase Securities Pakistan (Private) Limited and is provided for information purposes only. Under no circumstances, this is to be used or considered as an offer to sell or solicitation or any offer to buy. While reasonable care has been taken to ensure that the information contained in this report is not untrue or misleading at the time of its publication, Chase Securities makes no representation as to its accuracy or completeness and it should not be relied upon as such. From time to time, Chase Securities and/or any of its officers or directors may, as permitted by applicable laws, have a position, or otherwise be interested in any transaction, in any securities directly or indirectly subject of this report Chase Securities as a firm may have business relationships, including investment banking relationships with the companies referred to in this report This report is provided only for the information of professional advisers who are expected to make their own investment decisions without undue reliance on this report and Chase Securities accepts no responsibility whatsoever for any direct or indirect consequential loss arising from any use of this report or its contents At the same time, it should be noted that investments in capital markets are also subject to market risks This report may not be reproduced, distributed or published by any recipient for any purpose.

Analyst certification:

The research analyst for this report, certifies that 1.all of the views expressed in this report accurately reflect her personal views about the subject and part of any of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the research analyst in this report.

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