Mari Energies Limited (PSX: MARI) posted a 39 percent year-on-year increase in profit to Rs. 21.8 billion in the first quarter of fiscal year 2027, supported by higher gas production, stronger oil and gas prices, and a 24 percent rise in net sales.

Earnings per share (EPS) increased to Rs. 18.13 in July-September FY27, compared with Rs. 13.03 in the same period last year.

Net sales reached Rs. 56.2 billion, up 24 percent year-on-year, while gross profit rose 23 percent to Rs. 31.5 billion. Profit before tax increased 22 percent to Rs. 28.1 billion.

Production and Revenue

Gas production received a major boost from the Shawal field, where output increased 35-fold year-on-year. Production at Mari HRL grew 1 percent, while the Shams field added 21 million cubic feet per day (mmcfd) to output.

These gains were partly offset by a 3 percent decline in production from Grou-B and a 37 percent drop at the Shewa field following disruptions caused by a rupture in the SNGPL pipeline.

Exploration Costs and Tax Rate

Exploration costs fell 7 percent year-on-year to Rs. 2 billion during the quarter. The decline was attributed mainly to lower prospecting expenditure related to Ghazij, Shawal, and Spinwam, with no dry well booked during the period.

The company’s effective tax rate also declined to 23 percent in 1QFY27 from 32 percent a year earlier.

Trade Debt and Cash Position

Mari Energies’ trade debt increased to Rs. 89.3 billion, compared with Rs. 85.9 billion in the same quarter last year and Rs. 86 billion in the fourth quarter of FY26.

Meanwhile, its cash position declined to Rs. 45 billion from Rs. 59 billion in the preceding quarter.

The company’s dividend yield is estimated at 4.3 percent for FY27 and 6.2 percent for FY28.