Mari Energy’s Profit Up 7% to Nearly Rs. 50 Billion After 9 Months

Mari Energies Limited (MARI) reported a profit of Rs. 49.6 billion in nine months of FY2025-26, up 7 percent year-on-year (YoY) compared to Rs. 46 billion in 9MFY25.

MARI posted a PAT of Rs. 21.1 billion (EPS: Rs. 17.6/share) in 3QFY26, reflecting a 33 percent YoY increase driven by higher revenues and a lower effective tax rate, according to Arif Habib Limited.

Net sales for the quarter rose 6 percent YoY to Rs. 48.1 billion, supported by a 13 percent YoY increase in oil production to 1,282 bopd and a 4 percent YoY rise in gas production to 946 mmcfd. Within key assets, HRL output increased 2 percent YoY, while Shewa production surged nearly 11x YoY, providing a meaningful boost to overall volumes.

Exploration expenses increased sharply by 68 percent YoY to Rs. 4.9 billion and were almost 3x higher QoQ, mainly due to dry well costs related to Pario-1 booked during the quarter. In comparison, no such expenses were recorded in 3QFY25 or 2QFY26.

Finance income declined 29 percent YoY to Rs. 1.3 billion, mainly due to a lower interest rate environment compared to the same period last year.

Meanwhile, the company recorded a tax charge of Rs. 0.2 billion, translating into an effective tax rate of 1 percent, significantly lower than 29 percent in SPLY, with management yet to provide clarity on this unusually low rate.

On the balance sheet side, cash holdings declined to Rs. 58.6 billion in 3QFY26 from Rs. 60.8 billion in the previous quarter, while trade receivables increased to Rs. 92.0 billion from Rs. 88.7 billion.

For valuation, MARI is currently trading at forward FY26/FY27 P/E multiples of 14x/9x, with an expected dividend yield of 3 percent/5 percent.