The Board of Directors of Mari Petroleum Company Limited met today at the Company’s Head Office to review and finalize the Company’s annual accounts for FY 2018-19.
Lt Gen Ishfaq Nadeem Ahmad (Retd), Managing Director & CEOinformed the Board that the Company has achieved outstanding financial results for the financial year ended on June 30, 2019. The Company’s Net Profit rose to historically highest level of Rs. 24.3 compared with Rs. 15.4 billion last year. Growth in Net Sales, Other Income, and Finance Income contributed towards massive increase of 58% in Net Profit. Earnings Per Share crossed Rs. 200 mark and stood at Rs. 200.59, also a historic first, compared with Rs. 126.77 reported in the prior year. The Board recommended Final Cash Dividend of 20% (Rs. 2 per share), which will bring the Total Dividend for FY 2018-19 to 60% (Rs. 6 per share). In addition, the Board also recommended 10% Bonus Shares for approval of the Shareholders in upcoming AGM.
The Managing Director said, “We delivered excellent results in recently concluded financial year. Importantly, this was our fifth consecutive year of impressive financial and operational performance after the dismantling of Mari GPA, all the while navigating many challenges faced by local and global E&P industry. Our sustained progress is the result of our growth strategy, and demonstrates our agility in utilizing our resources to make good use of available opportunities.
We have confidence in our continued ability to execute our plans effectively. During the year, we successfully implemented the biggest and the most ambitious HRL Phase-X development project. The Project mainly consisted of drilling of 19 additional development wells in the periphery of Mari Field to enhance HRL plateau period, which was projected to start declining from current year, till 2023. The Project will help the Company avoid revenue losses worth billions of rupees over the next five years. Most importantly, this will ensure sustainable gas supply to fertilizer sector, thus contributing to the food security of the Country.
We continued with our efforts to curtail non-essential expenses and utilize in-house resources, wherever possible, to keep operating expenses less than 10% of Gross Sales and maintain our distinction of being the lowest cost producer in the Country.”
During the year, the Company drilled four exploratory and 20 appraisal/development Wells in its operated blocks, while two exploratory wells were drilled in other blocks where the Company is a joint venture partner. These drilling efforts resulted in four new hydrocarbon discoveries and enhancement of production potential.
“Probably the biggest achievement by the Company during the year was opening up of highly prospective but security sensitive blocks for exploration. Despite their hydrocarbon potential, these blocks remained stranded for decades as the Operators could not undertake on-ground exploration activities due to security situation. However, as soon as we took over operatorships of these blocks, we adopted an aggressive strategy to start on-ground activities with the assistance of security agencies. Despite all challenges MSU Alpha Crew is acquiring seismic data in Bannu West Block (KPK, erstwhile FATA) while MSU Beta Crew is moving to Block-28 (Balochistan) for seismic data acquisition, after completing its maiden seismic campaign in Zarghun South D&P Lease area.”
Opening up of these highly prospective blocks for exploration activities will help bring these areas in the mainstream and expected discoveries of hydrocarbon will secure the Country’s future, highlighted Lt Gen Ishfaq (R). As far as the safety performance is concerned, MPCL achieved lowest ever “Total Recordable Case Frequency” in its history (TRCF 0.09), indicating lowest number of health and safety related incidents. This is a distinguished accomplishment in a hazard prone industry, and was made possible by adherence to HSE standards and practices by the employees at all levels and locations, despite manifold increase in the Company’s operations.
MPCL’s financial and operational performance was recognized by various organizations and the Company won 14 awards at different forums during the year for its financial reporting, management, HR, HSE, and CSR practices.
Lt Gen (R) Ishfaq added, “Despite a volatile and challenging backdrop, we are optimistic about our Company’s long-term outlook. We are very well-positioned to execute our growth plans in core business of oil and gas exploration which include drilling of nine wells and finding suitable utilization of Low BTU Gas produced from Mari Field. Leveraging the cash flows generated by our core operations, we plan to undertake selected diversification in related non-core businesses in mid and downstream as well as acquire a few blocks abroad to strengthen our industry leadership and deliver long-term profitable growth for our shareholders.”
The Managing Director complimented and thanked all employees of the Company for their efforts and contributions for making this success possible, and urged them to keep doing their best. Lt Gen Syed Tariq Nadeem Gilani (Retd), Managing DirectorFauji Foundation Chaired the Board meeting which was attended by Members from Fauji Foundation, OGDCL, Government of Pakistan and representatives of General Public who lauded the Management Team led by the Managing Director, and showed their complete faith in the operations, financial matters and achievements of MPCL during the financial year.