Islamabad August 8 2024: Mari Petroleum Limited, Pakistan’s largest gas exploration and production company, has announced an unexpected issuance of 800% bonus shares and a substantial dividend of PKR 232 per share, following a significant increase in profitability, as per the company’s filing with the exchange.
Following this announcement, the company’s share price surged by 10%, reaching the upper cap at the Pakistan Stock Exchange.
The 800% bonus shares (eight shares for every one share held) will be issued for the fiscal year ending June 30, 2024, sourced from the Capital Redemption Reserve Fund and remaining funds from Revenue Reserves. This issuance reflects the company’s increasingly robust balance sheet, aiming to support further growth and diversification.
Additionally, a final cash dividend of PKR 134 per share (1,340%) has been declared for the year ending June 30, 2024. This is in addition to an interim dividend of PKR 98 per share (980%) already paid. The total dividend for the year, combining the interim and final dividends, amounts to PKR 232 per share (2,320%).
The Board of Directors of the Company has approved formation of a subsidiary with focus on Cloud Computing and Artificial Intelligence.
Mari Petroleum reported strong financial and operational results, with hydrocarbon sales volume reaching 39.01 MMBOE in fiscal year 2024, a 7% increase from the previous year. Net sales amounted to PKR 181.8 billion, while net profit soared to PKR 77.3 billion, marking a 25% and 38% growth, respectively, from the previous year. Earnings per share (EPS) for the year stood at PKR 579.4.
The company also achieved new hydrocarbon discoveries at the Shawal-1, Shewa-2, Maiwand X-1, and Jhim East X-1 (PPL-operated) exploratory wells.
Mari Petroleum expanded its exploration acreage by acquiring working interests in the Nareli (27.55%), Zarghun South (40%), and Kalchas South (44%) blocks.
The Government has approved a five-year extension of the Mari D&P lease, extending the company’s rights on the lease until November 2029 with an additional payment of 15% wellhead value. The latest amendments in the Petroleum Policy 2012 also grant the company the right to extend the lease as long as field production remains commercially viable.
The final dividend and bonus shares will be issued to shareholders whose names appear on the Register of Members as of the close of business on September 18, 2024. However, the bonus shares recommended by the Board on August 8, 2024, will not qualify for the final cash dividend for the year ended June 30, 2024.
