KARACHI: Mari Energies Limited (Mari) announced its financial results Monday, reporting a bottom line of Rs30,396 million (EPS: Rs25.32) during H1FY25, compared to Rs37,505 million (EPS: Rs31.24) in H1FY24, reflecting a 19 per cent year-on-year (YoY) decline.

On a quarterly basis, the company’s profitability stood at Rs11,168 million (EPS: Rs9.30), down 39 per cent YoY, primarily due to a 115 per cent YoY surge in operating and administration costs and an incremental 15 per cent royalty on the wellhead value of the Mari D&P Lease from November 2024, stated brokerage Arif Habib Ltd.

Contrary to expectations, Mari did not announce a cash dividend during the quarter.Topline in H1FY25 decreased by 8.0 per cent YoY, reaching Rs86,652 million compared to Rs93,745 million in the same period last year. This decline was driven by a 5.0 per cent YoY decrease in the wellhead price of the Mari gas field and a 2.0 per cent YoY appreciation of the Pakistani rupee In Q2FY25, net sales declined by 9.0 per cent YoY to Rs41,354 million due to a 5.0 per cent YoY decrease in oil production and a lower wellhead price of the Mari gas field.

Exploration costs surged by 106 per cent YoY to Rs6,721 million in H1FY25, primarily due to the cost of a dry well incurred during the period and higher prospecting expenditure. In Q2FY25, exploration costs increased by 154 percent YoY to Rs3,720 million, attributed to the booking of the dry well Zarghun South-5 during the quarter.