Mari Petroleum earns Rs23.35bln profit in July-March

KARACHI: Mari Petroleum Limited has announced a net profit of Rs23.35 billion for the nine-month period ended March 31, 2021, which is 0.58 percent higher than the profit of Rs23.224 billion in the same period last year.

The earnings per share (EPS) clocked in at Rs175.08 for 9MFY21 as against EPS of Rs174.09 in the same period last year. Company also declared a cash dividend of Rs60/share along with the corporate announcement.

For the quarter ended March 31, 2021, Mari posted a profit of Rs6.95 billion and EPS of Rs52.14 compared with profit of Rs8.47 billion and Rs63.54 EPS.

Net sales witnessed an uptick of 3.4 percent settling at Rs55.33 billion in 9MFY21 compared with the sale of Rs53.51 billion last year. “The higher topline can be attributed to rise in oil and gas production by 13 percent and 7 percent, respectively,” an analyst at Arif Habib Limited said.

However, during the quarter ended March 1, 2021, revenues plummeted 15 percent clocking-in at Rs16.122 million in contrast to Rs18.978 million in the corresponding quarter last year.

“The wellhead price of Mari gas field declined 13 percent during the period, whereas, oil and gas production witnessed a growth of 30 percent and 3 percent, respectively”.

The exploration cost declined 57 percent Rs947.3 million in Q3FY21, which is attributable to lower prospecting expenditures. Likewise, the total exploration cost during 9MFY21 came out to be at Rs3.974 million, down 31 percent YoY.

The other income portrayed a massive fall of 98 percent arriving at Rs4.97 million in Q3FY21 owed to decline in income from seismic unit. Whereas, other income during 9MFY21 clocked-in at Rs20.16 million against Rs400 million in 9MFY20.

Engro Fertilizers posts Rs5.74bln Q3 profit

Engro Fertilizers Limited has announced a net profit of Rs5.74 billion for the quarter ended March 31, 2021, which is around ten times higher than the profit of Rs570.76 million in the same period last year.

The EPS clocked in at Rs4.3 for Q3FY21 as against EPS of Re0.43 in the same period last year. Company also declared a cash dividend of Rs4.0/share along with the corporate announcement.

“Earnings and gross profit massively increased during the period on the back of improvement in agricultural activities, improved urea and DAP prices and better margin. Moreover, return on Engro Fertilizers’ short-term investments contributed well in the earnings during the quarter,” Zaid Aftab at Pearl Securities said.

The sales revenues during the period clocked in at Rs29.44 billion, up 172 percent from sales of Rs10.79 billion in the corresponding period last year.

An analyst at Arif Habib Limited attributed the jump in sales to huge growth in urea and DAP offtake, which surged 3.5x and 1.8x, respectively, and 27 percent surge in DAP prices. Urea prices declined 2.0 percent during the period under review.

Other income surged by 83 percent arriving at Rs479.06 million in Q1CY21 owing to higher income from financial assets, while finance cost witnessed a decline of 78 percent arriving at Rs269.09 million during the period due to fall in interest rates.

EPCL net profit jumps to Rs4.14bln

Engro Polymer and Chemicals Limited (EPCL) has announced a net profit of Rs4.14 billion for the quarter ended March 31, 2021, as against the profit of Rs192.74 million in the same period last year.

The EPS clocked in at Rs4.56 for Q3FY21 as against EPS of Re0.21 in the same period last year. Company also declared a cash dividend of Re0.8/share along with the corporate announcement.

The increase is attributable to improved PVC-ethylene margin and limited plant operation in Q1CY21.

During the quarter, PVC international prices touched record high amid supply chain disruption from US market, on-going turnaround season and higher freight cost.

Company’s PVC sales for the Q1CY21 stood at 53,000 tons while caustic sales were recorded at 19,000 tons.

Management believes that PVC prices would continue to remain firm due to supply tightness and higher freight charges. However, on caustic segment, management expects some slowdown due to rising Covid cases in US and European market.

Net revenues during the quarter clocked in at Rs15.67 billion, up 122 percent from Rs7.05 billion recorded in the same period last year.

EPCL recorded other income of Rs291.2 million and finance cost of Rs402.5 million during the quarter ended March 31, 2021.

Company has planned plant turnaround in June 2021 for a period of 20-25 days. Given the enhanced capacity and demand supply situation, management is confident that it will have sufficient inventory to cater local demand during the shutdown period.