External broker reports(aggregated public sources), Topline Securities

Topline Securities

External broker reports(aggregated public sources)

Topline Securities is one of the fastest growing brokerage houses in Pakistan. It has strong equity brokerage, economic / equity research, mutual fund distribution, commodity trading and corporate finance & advisory functions. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<ul><li>Oil and Gas Development Company (OGDC) held its Analyst Call today to discuss 1QFY26 financial results and future outlook.</li><li>The management highlighted that the company is moving into higher-risk areas. The 3D seismic acquisition in Uch has recently been concluded, while seismic activity in Bettani is also in progress. The company has already drilled two wells in Bettani and is evaluating the prospects for a potential third well.</li><li>Management noted a substantial improvement in receivables collection, now exceeding 109% of billing. Specifically, recovery from Uch stands at 177%, SNGPL at 104%, while SSGC is at around 90%.</li></ul>

Oil and Gas Development Company (OGDC) held its Analyst Call today to discuss 1QFY26 financial results and future outlook.The management highlighted that the company is moving into higher-risk areas. The 3D seismic acquisition in Uch has recently been concluded, while seismic activity in Bettani is also in progress. The company has already drilled two wells in Bettani and is evaluating the prospects for a potential third well.Management noted a substantial improvement in receivables collection, now exceeding 109% of billing. Specifically, recovery from Uch stands at 177%, SNGPL at 104%, while SSGC is at around 90%.

Topline Flash Note: Oil & Gas Development (OGDC) - Corporate Briefing Key Takeaways

<ul><li>Mari Energies (MARI) held its corporate briefing session today to discuss FY25 performance and future outlook.</li><li>The company achieved its highest ever production level of 39.13 MMBOE in FY25. Management highlighted that the gas curtailment and additional 15% royalty charge resulted in lower earnings during the year.</li><li>Management confirmed that the board meeting with ADNOC was held, where the production plan has been approved and the project will now move to the development phase. Management further shared that they are targeting production of around 25,000 bpd from the 3 discoveries in the Abu Dhabi block.</li></ul>

Mari Energies (MARI) held its corporate briefing session today to discuss FY25 performance and future outlook.The company achieved its highest ever production level of 39.13 MMBOE in FY25. Management highlighted that the gas curtailment and additional 15% royalty charge resulted in lower earnings during the year.Management confirmed that the board meeting with ADNOC was held, where the production plan has been approved and the project will now move to the development phase. Management further shared that they are targeting production of around 25,000 bpd from the 3 discoveries in the Abu Dhabi block.

Topline Flash Note: Mari Energies Limited (MARI) – Corporate Briefing Key Takeaways

<ul><li>Mari Energies (MARI) held its 41st Annual General Meeting following the release of FY25 results.</li><li>The company managed to achieve its highest ever production level of 39.13 MMBOE in FY25. Management highlighted that the additional 15% royalty charge resulted in a revenue loss of Rs9bn loss for the company.</li><li>In its initial phase, Spinwam is expected to produce around 30 mmcfd, while Shewa is currently operating at about 50-60 mmcfd. However, the company is targeting a combined production of 300 mmcfd from both fields. This will also require an additional pipeline from SNGP and a field development plan, for which discussions are underway.</li></ul>

Mari Energies (MARI) held its 41st Annual General Meeting following the release of FY25 results.The company managed to achieve its highest ever production level of 39.13 MMBOE in FY25. Management highlighted that the additional 15% royalty charge resulted in a revenue loss of Rs9bn loss for the company.In its initial phase, Spinwam is expected to produce around 30 mmcfd, while Shewa is currently operating at about 50-60 mmcfd. However, the company is targeting a combined production of 300 mmcfd from both fields. This will also require an additional pipeline from SNGP and a field development plan, for which discussions are underway.

Topline Flash Note: Mari Energies Limited (MARI) - AGM Key Takeaways

Sui Northern Gas Pipelines Limited / Equity Bottom-Up

Sui Northern Gas Pipelines Limited (SNGP PA)

<ul><li>As per news reports, Federal Cabinet has lifted ban on new gas connection, however, these new connections will be provided at RLNG rate, which is around US$12-13/mmbtu, or Rs3,300-3,700/mmbtu.</li><li>We believe, the lifting of ban on gas connections will bode well for E&P companies as alone SNGP has curtailed over 300 mmcfd of gas from domestic gas exploration companies namely PPL, OGDC, MARI, and POL.</li><li>With news reports suggesting pending gas connection request of 3.2mn (for SNGP) and assuming 3.5mn country wide gas connection requests, this has potential to consume additional 250mmcfd of gas (equivalent to 2.5 cargoes additional).</li></ul>

As per news reports, Federal Cabinet has lifted ban on new gas connection, however, these new connections will be provided at RLNG rate, which is around US$12-13/mmbtu, or Rs3,300-3,700/mmbtu.We believe, the lifting of ban on gas connections will bode well for E&P companies as alone SNGP has curtailed over 300 mmcfd of gas from domestic gas exploration companies namely PPL, OGDC, MARI, and POL.With news reports suggesting pending gas connection request of 3.2mn (for SNGP) and assuming 3.5mn country wide gas connection requests, this has potential to consume additional 250mmcfd of gas (equivalent to 2.5 cargoes additional).

Topline Flash Note: Pakistan E&Ps and Sui Cos: Lifting of Ban on Gas Connection; Some Respite for Domestic E&Ps Production

<ul><li>MARI reported an 18% QoQ growth in its earnings to Rs15.69/share in 4QFY25, taking FY25 earnings to Rs54.25/share, down 16%.</li><li>The earnings are higher than industry expectations primarily due to a lower Effective Tax Rate (ETR), which stood at 13% in 4QFY25 compared to 29% in 3QFY25 and 20% in 4QFY24.</li><li>Royalty expense as a % of net sales in 4Q has clocked in at 23% compared to 11% in 4QFY24. The higher royalty expense is attributable to the imposition of an additional 15% royalty on Mari field after its renewal.</li></ul>

MARI reported an 18% QoQ growth in its earnings to Rs15.69/share in 4QFY25, taking FY25 earnings to Rs54.25/share, down 16%.The earnings are higher than industry expectations primarily due to a lower Effective Tax Rate (ETR), which stood at 13% in 4QFY25 compared to 29% in 3QFY25 and 20% in 4QFY24.Royalty expense as a % of net sales in 4Q has clocked in at 23% compared to 11% in 4QFY24. The higher royalty expense is attributable to the imposition of an additional 15% royalty on Mari field after its renewal.

MARI Earnings Up By 18% QoQ To Rs15.69/Share

Pakistan

Mari Energies Limited specializes in the drilling, production and selling of natural gas.

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Mari Energies (MARI PA)

Topline Flash Note: Oil & Gas Development (OGDC) - Corporate Briefing Key Takeaways

Oil and Gas Development Company (OGDC) held its Analyst Call today to discuss 1QFY26 financial results and future outlook. The management...

Topline Securities

Topline Flash Note: Mari Energies Limited (MARI) – Corporate Briefing Key Takeaways

Mari Energies (MARI) held its corporate briefing session today to discuss FY25 performance and future outlook. The company achieved its highest...

Topline Securities

Topline Flash Note: Mari Energies Limited (MARI) - AGM Key Takeaways

Mari Energies (MARI) held its 41st Annual General Meeting following the release of FY25 results. The company managed to achieve its highest ever...

Topline Securities

Topline Flash Note: Pakistan E&Ps and Sui Cos: Lifting of Ban on Gas Connection; Some Respite for Domestic E&Ps Production

As per news reports, Federal Cabinet has lifted ban on new gas connection, however, these new connections will be provided at RLNG rate, which is...

Topline Securities

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52-week Range

Market Cap (USDm)

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Topline Flash Note: Oil & Gas Development (OGDC) - Corporate Briefing Key Takeaways

Oil and Gas Development Company (OGDC) held its Analyst Call today to discuss 1QFY26 financial results and future outlook. The management...

Topline Securities

Topline Flash Note: Mari Energies Limited (MARI) – Corporate Briefing Key Takeaways

Mari Energies (MARI) held its corporate briefing session today to discuss FY25 performance and future outlook. The company achieved its highest...

Topline Securities

Topline Flash Note: Mari Energies Limited (MARI) - AGM Key Takeaways

Mari Energies (MARI) held its 41st Annual General Meeting following the release of FY25 results. The company managed to achieve its highest ever...

Topline Securities

Topline Flash Note: Pakistan E&Ps and Sui Cos: Lifting of Ban on Gas Connection; Some Respite for Domestic E&Ps Production

As per news reports, Federal Cabinet has lifted ban on new gas connection, however, these new connections will be provided at RLNG rate, which is...

Topline Securities

MARI Earnings Up By 18% QoQ To Rs15.69/Share

MARI reported an 18% QoQ growth in its earnings to Rs15.69/share in 4QFY25, taking FY25 earnings to Rs54.25/share, down 16%. The earnings are...

Topline Securities