The fiscal year FY22 witnessed spiking oil and energy prices, which lifted the revenues and earnings of the E&P sector. Mari Petroleum Company Limited (PSX: MARI) also announced its higher revenues coming from higher oil and gas prices in FY22. In 1QFY23 as well, MARI’s revenues were seen climbing by 53 percent year-on-year on account of higher gas wellhead prices that surged by 67 percent year-on-year. Revised well-head gas prices incorporated the recent strength in crude oil prices which provided the stimulus to the topline.
The improvement in MARI’s production volumes that was seen during FY21 continued in FY22. However, where MARI’s revenues were seen growing as a result of higher gas wellhead prices as well as higher hydrocarbon production in FY22, the production volumes of the oil and gas E&P Company declined during the latest quarter. MARI’s oil and gas flows slipped by 57 percent and 3 percent year-on-year, respectively. Nonetheless, the E&P Company’s topline was also supported by higher currency weakening as Pakistani Rupee depreciated by around 25 percent year-on-year against the US Dollar during 1QFY23.
On the cost side, the exploration and prospecting expenditure dropped by 21 percent, which was due t8o absence of dry well. The rise in topline trickled down, and the company posted growth of around 40 percent year-on-year in profits before tax for 1QFY23. This was despite higher operating expenses, finance cost, share of loss in associates and other charges during the quarter. The ultimate bottom-line i.e. profit after tax grew 40 percent year-on-year.