Mari Petroleum Emerges as PSX’s Top Company with Rs984bn Market Value

Mari Petroleum has emerged as the Pakistan Stock Exchange’s (PSX) largest company by market capitalization, overtaking Oil & Gas Development Company (OGDC).

The analyst Mohammad Sohail pointed out that Mari’s market value has surged to Rs984 billion, surpassing OGDC’s Rs963 billion. This increase follows Mari’s impressive seventh place in market capitalization last year, supported by promising hydrocarbon prospects and a significant bonus share announcement.

The annual report for FY24 reveals a notable 7.0%  year-on-year increase in hydrocarbon sales, totaling 39.01 million barrels of oil equivalent. The increase in output can be attributed to the effective functioning and capacity upgrades at the Sachal Gas Processing Complex (SGPC), boosted production from the recently identified Ghazij reservoir, and better oversight of the HRL, SML-SUL reservoirs, along with satellite fields.

Mari Petroleum has seen an increase in its gas market share as an operator, scaling from 24% in FY23 to 29% in FY24. Additionally, its oil market share has also experienced growth, moving from 2.1 percent to 2.5%. The company announced strong financial results for FY24, revealing a profit-after-tax (PAT) of Rs77.28 billion, which marks an increase of nearly 38%YOY from Rs56.13 billion in the prior year.

In October, the company’s management announced that the government had granted approval for the renewal of Mari’s Development and Production (D&P) Lease, extending it until November 10, 2029. Mari Petroleum is set to enhance its commitment by contributing an extra 15 percent of the wellhead value of gas produced to the federal government as part of this renewal initiative.

Mari Petroleum has officially introduced a new subsidiary, Mari Technologies Limited, as of September 25, 2024. The newly established entity will concentrate on data centers, cloud computing, artificial intelligence, and various technologies related to petroleum and mining.
The government is actively addressing the reduction in gas production by managing the necessary cargoes and gas volumes needed by Sui companies to tackle intake challenges.

The management observed that a significant number of shareholders have fulfilled their obligations concerning bonus tax payments. According to a report by Arif Habib Limited, for individuals who cannot afford to pay, the bonus shares will be sold at the prevailing market price. Any deficit will be addressed by adjusting an extra 10 percent of the shares held by the company on behalf of the shareholders.