Mari Petroleum Company Limited (MARI), a major player in Pakistan’s energy sector, has achieved a significant milestone by reaching a market valuation of more than $1 billion on the Pakistan Stock Exchange (PSX).
Mari Petroleum is the seventh listed company to join the billion-dollar club, demonstrating its dominance in the country’s financial environment.
Oil and Gas Development Company Limited (OGDC), Colgate-Palmolive Pakistan Limited, Nestle Pakistan Limited, Meezan Bank Limited, Pakistan Petroleum Limited (PPL), and Pakistan Tobacco Company are some Pakistani corporations with a market value of more than $1 billion.
According to PSX data Mari Petroleum’s market capitalization is Rs288.95 billion, or slightly over $1 billion. Given the changing characteristics of the Pakistani stock market, this achievement is notable.
“Interestingly, only two listed companies (OGDC and Nestle) had a market capitalisation of more than $1 billion five months ago,” Mohammed Sohail, CEO of Topline Securities, stated in a post on X, formerly Twitter.
Mari Petroluem, Pakistan leading exploration firm, joins Billion Dollar club at Pakistan Stock Exchange (PSX)
— Mohammed Sohail (@sohailkarachi) December 11, 2023
Now, there are 7 listed companies having a billion dollar plus market value. This includes OGDC, Colgate, Nestle, Meezan, PPL, Pak Tobbacco, and Mari Petroleum… pic.twitter.com/ZsilOGSKcE
Market Value of Mari Petroleum has increased 43% since the end of June, reflecting its strong performance. While Mari’s gain coincides with the overall favorable trend in the KSE-100 Index, which witnessed a 60% rally during the same period, Mari’s success is due to special variables within the energy industry.
It’s current success has been largely due to increased exploration activity. According to a PSX notification, the company has successfully drilled and tested a horizontal well in Sindh’s District Daharki.
Additionally, the start of gas production from an evaluation well in Sindh contributed to Mari’s good momentum.
Analyst Viewpoint:
According to analyst, company’s low exposure to circular debt issues compared to other Exploration and Production (E&P) companies is the reason of its unique position in Oil sector. The fertilizer industry, which accounts for about 90% of Mari’s revenue, provides a consistent stream of income, assuring timely payments and minimizing cash flow issues.
Furthermore, the recent government-led hike in gas pricing is going to benefit energy corporations, particularly Mari Petroleum. This development is consistent with the overall shift in Pakistan’s energy sector and helps to Mari’s expanding market importance.
The achievement of a billion-dollar market capitalization highlights Mari Petroleum’s strategic position and durability in Pakistan’s changing economic landscape.
