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Mari Petroleum has announced its financial results for FY25, posting a 16% year-on-year decline in earnings, with profit recorded at Rs65.1 billion (EPS: PKR54.25) compared to Rs77.24 billion in FY24.
For the fourth quarter, Mari Petroleum reported a profit of Rs18.8 billion (EPS: PKR15.69), reflecting a 27% decline year-on-year. The drop in earnings was attributed to the imposition of an incremental royalty on revenue from the Mari D&P Lease, according to Arif Habib Ltd. Despite this, the company declared a dividend per share (DPS) of Rs21.70 for Q4 FY25.
The company’s annual sales fell 3% to Rs177.1 billion, largely due to a 5% reduction in the wellhead price of the Mari gas field and appreciation of the Pakistani rupee against the US dollar. However, in Q4, net sales increased by 12% year-on-year to Rs44.8 billion, supported by an 18% rise in oil and gas production and a 16% increase in royalty charges.
Royalty charges surged 61% year-on-year to Rs35.6 billion in FY25, driven by the incremental royalty on wellhead revenue. On a quarterly basis, royalty charges jumped 130% year-on-year. Exploration costs rose 15% to Rs14.9 billion for the year, with Q4 costs at Rs5.2 billion versus Rs5.9 billion in the same period last year.
Finance income for Mari Petroleum rose 8% year-on-year to Rs9.9 billion, supported by higher returns on cash and cash equivalents. Cash reserves stood at Rs77 billion as of June 2025, compared to Rs78 billion in the previous year.
During FY25, the company added 110 million barrels of oil equivalent (BOE) to its 2P reserves, bringing the total to 952 million BOE, with a reserve replacement ratio of 278%. Significant hydrocarbon discoveries, including Spinwam-1, Soho-1, and Pateji, collectively added 165.9 million BOE to resources.
Mari Petroleum achieved its highest-ever hydrocarbon production of 39.13 million BOE, despite delays in Waziristan Block production due to higher RLNG curtailments. Early production from the block began in March 2025, contributing 70 mmcfd of gas and 700 bopd of condensate.
The company also expanded into the technology sector through subsidiaries Mari Technologies Limited and Sky47 Limited, with a 5MW data center under construction in Islamabad and plans progressing for another in Karachi. In mining, subsidiary Mari Minerals began targeted drilling in EL-322 and EL-323 in August 2025.
