MARI PETROLEUM COMPANY LIMITED
MARI: Higher gas production and weaker PKR to lift 3QFY20 EPS to
We estimate incline in earnings on the back a) 11%YoY PKR depreciation despite 15%YoY drop in oil prices, b) higher gas production from Mari field and, c) higher other income amid elevated mark-up income,
On quarterly basis, earnings are expected to increase by +6%QoQ on the back of higher gas production despite 11%QoQ drop in oil prices and average exchange rate appreciation by 1%QoQ,
We recommend a 'BUY" stance on MARI with our Dec-20 target price of
Earnings to clock in at
Higher gas production to lift EPS on quarterly basis despite lower oil prices
On quarterly basis, earnings are expected to increase by +6%QoQ on the back of higher gas production despite 11%QoQ drop in oil prices and average exchange rate appreciation by 1%QoQ.
Gas production up by +8%YoY while oil production remained flat during 3QFY20
Total gas production for the Company increased by +8%YoY on the back of higher production from Mari field. This brings total gas production for 9MFY20 to 686mmcfd down by 2%YoY. Oil production remained flat on account of lower production from Halini and Halini Deep which was compensated by commencement of production from Dharian field. This brings total oil production to 1,082bopd down by 3%YoY for 9MFY20.
Recommendation
We recommend a 'BUY' stance on MARI with our Dec-20 target price of
© Pakistan Press International, source
