Mari Energies profit declines 6%, keeps dividend intact at Rs8

Mari Energies  Limited (PSX: MARI) reported a profit after taxation of Rs28.44bn for the six months ended December 31, 2025, down 6.4% from Rs30.4bn in the corresponding period last year.

Earnings per share declined to Rs23.69 compared to Rs25.32.

Dividend by the company is declared at Rs8.3 per share.

Gross sales increased 4.5% YoY to Rs102.28bn from Rs97.87bn, a higher production volume during the period.

After deducting general sales tax of Rs11.06bn and excise duty of Rs1.10bn, net sales grew 4% to Rs90.12bn from Rs86.65bn in 6MFY25.

Royalty and additional wellhead charge surged 62% to Rs21.92bn from Rs13.53bn, significantly impacting profitability.

Operating and administrative expenses decreased 11.8% to Rs20.4bn from Rs23.13bn. Exploration and prospecting expenditure fell 39.4% to Rs4.08bn from Rs6.72bn in 6MFY25.

Finance cost increased 17.8% to Rs1.96bn from Rs1.67bn. Other charges declined 21% to Rs2.51bn from Rs3.17bn last year.

Other income surged to Rs982m from Rs145.4m. However, finance income contracted 53.2% to Rs2.66bn from Rs5.68bn in the prior period.

Share of loss in associate improved 10.1% to Rs195.4m from Rs217.4m in 6MFY25.

Profit before taxation declined 3% to Rs42.70bn from Rs44.04bn in 6MFY25.

Taxation increased 4.5% to Rs14.26bn from Rs13.64bn in the prior period.

The company concluded 6MFY25 with a net profit of Rs28.44bn, delivering a gross profit margin of 76.7% compared to 73.3% in 6MFY25, while net profit margin decreased to 31.6% from 35.1% in the corresponding period last year.

The profit decline was primarily driven by a sharp 62% increase in royalty and additional wellhead charges and lower finance income, partially offset by reduced operating expenses, lower exploration costs, and a significant surge in other income.

The Board has approved a further investment of Rs2.5bn in its wholly owned subsidiary, Mari Minerals (Private) Limited, through equity investment by subscribing to a right issue at par value, in tranches as and when required by Mari Minerals.

The Pakistan Credit Rating Agency Limited (PACRA) has maintained the company’s long-term rating at AAA and short-term rating at A1+, reflecting its strong financial position and creditworthiness.