External broker reports(aggregated public sources), Topline Securities

Topline Securities

External broker reports(aggregated public sources)

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Equity Bottom-Up

<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

<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

<ul><li>We have revised down our earnings estimates for Mari Energies (MARI) by 31-42% during FY25-27 due to a downward revision in oil prices and a decline in production estimates.</li><li>Despite the decline in earnings, we upgrade our stance on MARI from Sell to HOLD as the stock has underperformed by 40% by losing 28% of its share price since Dec 16, 2024.</li><li>Key risks to earnings include prolonged disruption in production, further reduction in global oil prices, and delay in production from new fields.</li></ul>

We have revised down our earnings estimates for Mari Energies (MARI) by 31-42% during FY25-27 due to a downward revision in oil prices and a decline in production estimates.Despite the decline in earnings, we upgrade our stance on MARI from Sell to HOLD as the stock has underperformed by 40% by losing 28% of its share price since Dec 16, 2024.Key risks to earnings include prolonged disruption in production, further reduction in global oil prices, and delay in production from new fields.

Mari Energies Ltd (MARI): Upgraded to HOLD Following Price Correction of 28%

<ul><li>MARI reported 42% QoQ decline in its earnings to Rs9.3/share primarily because of higher operating expenditures and higher royalty expense.</li><li>The result was below expectations as market was expecting earnings of Rs11-14/share.</li><li>Furthermore, Unlike street expectations of Rs10-15/share, company did not declare any cash dividend for 1HFY25.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

MARI reported 42% QoQ decline in its earnings to Rs9.3/share primarily because of higher operating expenditures and higher royalty expense.The result was below expectations as market was expecting earnings of Rs11-14/share.Furthermore, Unlike street expectations of Rs10-15/share, company did not declare any cash dividend for 1HFY25.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Mari Energies (MARI): Earnings fell by 42% QoQ to Rs9.3/share

Pakistan

Mari Petroleum Co Ltd specializes in the drilling, production and selling of natural gas.

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Mari Petroleum (MARI PA)

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

Mari Energies Ltd (MARI): Upgraded to HOLD Following Price Correction of 28%

We have revised down our earnings estimates for Mari Energies (MARI) by 31-42% during FY25-27 due to a downward revision in oil prices and a...

Topline Securities

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52-week Range

Market Cap (USDm)

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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

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

Mari Energies Ltd (MARI): Upgraded to HOLD Following Price Correction of 28%

We have revised down our earnings estimates for Mari Energies (MARI) by 31-42% during FY25-27 due to a downward revision in oil prices and a...

Topline Securities

Mari Energies (MARI): Earnings fell by 42% QoQ to Rs9.3/share

MARI reported 42% QoQ decline in its earnings to Rs9.3/share primarily because of higher operating expenditures and higher royalty expense. The...

Topline Securities