KARACHI: Mari Energies Limited (MARI) posted an 18 per cent quarter-on-quarter decline in earnings for the second quarter of FY26, reporting a profit of Rs10.66 per share, as higher-than-anticipated operating and exploration costs weighed on margins.
Despite the quarterly drop, the oil and gas exploration company recorded a 15 per cent year-on-year increase in earnings for the quarter. However, cumulative earnings for the first half of FY26 stood at Rs23.89 per share, marking a 6 per cent decline compared to the same period last year.
Net sales during 2QFY26 reached Rs44.7 billion, up 8 per cent year-on-year but down 1 per cent quarter-on-quarter. This lifted total sales for 1HFY26 to Rs90.1 billion, reflecting a 4 per cent year-on-year increase.
Royalty expenses rose sharply to Rs10.6 billion, a 33 per cent increase year-on-year, with royalties accounting for 24 per cent of net sales, broadly in line with 25 per cent in the preceding quarter. Operating expenditures (OPEX) for the quarter amounted to Rs12.0 billion, down 20 per cent year-on-year but surging 44 per cent quarter-on-quarter. On a per-barrel-of-oil-equivalent basis, OPEX stood at USD3.86 per BOE, significantly above the recent quarterly average and Topline Securities’ expectation of USD2.76 per BOE. The brokerage noted that such spikes typically reflect one-off amortisation charges, as observed in the current quarter, though further clarification from the company is awaited.
Mari Energies also booked exploration expenses of Rs1.9 billion during the quarter, despite no major exploration activity or dry wells reported in the period.
Finance income declined 40 per cent quarter-on-quarter to Rs1.0 billion, mainly due to a lower cash balance and foreign exchange losses following the appreciation of the Pakistani rupee from Rs281.32 per US dollar at end-September 2025 to Rs280.12 per US dollar at end-December 2025.
The effective tax rate rose to 35 per cent, compared to 25 per cent in the same quarter last year and 32 per cent in 1QFY26, further pressuring profitability. Meanwhile, the company announced an interim cash dividend of Rs8.3 per share for 2QFY26, translating into a 35 per cent payout ratio for the first half of the fiscal year. No dividend had been declared in 1HFY25.
Story by Muhammad Saqib
