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