Karachi: Mari Energies (MARI) has reported a robust 65% increase in its quarterly earnings, reaching Rs17.63 per share, as the company continues to capitalize on lower tax rates and strategic investments. This growth aligns with a 33% year-over-year increase in earnings for the third quarter of fiscal year 2026, bringing the year-to-date earnings to Rs41.32 per share, marking a 7% rise from the previous year.
According to JS Global, Mari Energies' net sales have also shown resilience, rising 6% both year-over-year and quarter-over-quarter to Rs48.2 billion in the third quarter. Cumulatively, sales for the first nine months of FY26 reached Rs138.3 billion, demonstrating a 5% year-over-year increase. The company's royalty expenses fell by 3% year-over-year, now accounting for 23% of net sales, a decrease from 25% in the same quarter last year.
The report also highlighted a notable increase in the company's operating expenditures, which rose 27% year-over-year but decreased by 13% from the previous quarter, amounting to Rs10.7 billion. Exploration expenses surged by 68% from the previous year, largely due to costs associated with the Pario-1 dry well in the Sujawal Block.
Finance income saw a decline of 29%, attributed to a lower cash balance and exchange losses amidst the appreciation of the Pakistani rupee. The effective tax rate for the quarter was significantly reduced to 1%, a notable drop from the 29% rate recorded in the same period last year.
In addition to reporting financial results, Mari Energies has announced investments in three companies: Rs5 billion in Mari Minerals, Rs2.6 billion in Mari Technologies, and Rs2.44 billion in GHG Emissions. Despite these developments, JS Global maintains a hold stance on Mari Energies, noting the company's current trading at an estimated PE ratio of 14.4 for FY26 and 11.8 for FY27.
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