Mari Petroleum sustains strong performance in first quarter FY2023-24

Mari Petroleum Company Limited (MPCL), Pakistan’s principal gas supplier to the fertilizer industry, has maintained its strong financial momentum into the first quarter of the fiscal year 2023-24, according to recent financial disclosures. The company, which plays a pivotal role in the fertilizer sector, reported an unprecedented level of hydrocarbon sales volume reaching 10 million barrels of oil equivalent (MMBOE) during the July-September 2023 period. This figure represents a significant 12% increase compared to the same period in the previous year.

Financially, MPCL has also reported a robust increase in its net profits, with a recorded PKR 19.1 billion for the quarter, showcasing a substantial 50% increase year-on-year. Analysts at AHL Research have linked this exceptional financial performance to the swift capitalization of development projects leading to elevated sales. The significant factors contributing to this financial success include a considerable 61% year-on-year increase in the wellhead price of the Mari Gas Field and a 28% depreciation of the Pakistani Rupee over the same period.

Additionally, MPCL’s strategic initiatives have been instrumental in bolstering its operational capabilities. In December, the company entered into a Framework Agreement with major industry players — Fauji Fertilizer Company Limited (FFC), Engro Fertilizers Limited (EFL), and Fatima Fertilizer Company Limited (FFCL) — for the installation of Pressure Enhancement Facilities (PEF) at the Mari Gas Field located in Daharki, Sindh. The project aims to ensure sustained gas production levels at the required pressures to consistently supply the fertilizer manufacturing units.

The Managing Director/CEO Faheem Haider and Chairman Waqar Ahmed Malik highlighted in their quarterly report the ongoing progress on the Habib Rahi Limestone (HRL) Pressure Enhancement Facilities Project, including pipeline debottlenecking efforts and the completion of studies for compressor installations. However, they did not disclose a specific timeline for the project’s completion.

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A previous assessment by Arif Habib Limited (AHL) anticipated the project’s completion within two years, with an estimated budget of PKR 10 billion to PKR 12 billion. AHL noted that the successful completion of this infrastructure project is expected to further extend the reserve life of the Mari Gas Field, underscoring the importance of such developments in MPCL’s operational strategy.