Mari Petroleum : Financial Results for the Year Ended June 30, 2023

MPCL-CA-23-3588

August 09, 2023

The General Manager

Pakistan Stock Exchange Limited

Stock Exchange Building

Stock Exchange Road

KARACHI

Subject: Financial Results for the Financial Year ended on June 30, 2023

Dear Sir,

1. We hereby inform you that the Board of Directors of Mari Petroleum Company Limited in its meeting held on August 8, 2023 at 02:00 pm at Fauji Foundation Head Office, Rawalpindi, recommended the following:

1. CASH DIVIDEND

A final cash dividend for the year ended June 30, 2023 @ Rs. 58 per share i.e. 580%. This is in addition to the interim dividend already paid @ Rs. 89 per share i.e. 890%. The recommended final dividend along with the interim dividend amounts to Rs. 147 per share i.e. 1,470%.

1. 1. ANY OTHER ENTITLEMENTS: NIL
2. The Financial Results of the Company for FY 2022-23 are attached at Annexure 'A'.
3. The Company's transformation program which started in mid-2020,re-focusing on core business, disciplined capital allocation, operational excellence, use of new technologies and major investments in exploration and development projects has paid off and has started to create value for all stakeholders. By the Grace of Allah SWT, the Company has enhanced its production capacity, maintained low operating cost and has been able to grow its resource base and portfolio. Some of the key highlights are given below:
4. 1. The Company has recorded Net Sales of Rs. 145.7 billion and Net Profit of Rs. 56.1 billion(after super tax @ 10%), showing an increase of 53% and 70% respectively compared to last year. Earnings per share stood at Rs. 420.75 per share (vs. Rs. 247.84 per share in 2021-2022).
   2. Commissioning of Sachal Gas Processing Complex (SGPC) and its connectivity with SNGPL network via cross country pipeline has resulted in monetization of Goru-B discovery. In addition, HRL Swing Volumes project has created flexibility for the first time to divert undrawn volumes of fertilizer and power customers to SNGPL, thus optimizing the production and sales. Hydrocarbon sales stood at 36.35 MMBOE.
   3. The management implemented conscious cost optimization measures in all operations and has been able to sustain operating cost of around USD 2 per Barrel of Oil
      Equivalent.

1. 1. Ghazij-1gas discoveryin Mari D&PL added a new reservoir horizon in the existing Mari Field after a gap of 18 years and has opened a new play concept in mature basins across the country. In addition, the Company achieved a technological milestone by drilling its first-ever horizontal well (Mari-122H) in HRL Reservoir. A second horizontal well (Mari 123H) has also been successfully drilled and put on production subsequent to year end.
   2. Five (05) new exploration blockshave been added to the Company's portfolio including Kalchas South block. The Company's exploration portfolio now consists of 34 exploration licenses (16 added in the last 3 years).
   3. Company contributed Rs 74 billion towards the government exchequerand over USD 3 billion foreign exchangesavings.
   4. Installation of Early Production Facilities (EPF) at Shewa (Waziristan) discoveryin North Waziristan is in progress. Subject to completion of SNGPL pipeline, this project will be ready for production by Q1 2024.
   5. Drilling of Shewa-2appraisal wellis underway and in case of success it will be connected to the Shewa-1 EPF facilities.
   6. We are working closely with GoP and our customers to reduce the circular debt being faced by the energy sector. We understand that the Government is considering various options to resolve this issue.
2. The company has also constituted an Environmental, Social and Governance (ESG) Committee of the Board.
3. The final cash dividend declared above will be paid to those shareholders whose names will appear on the Register of Members at the close of business on September 19, 2023.
4. The Share Transfer Books of the Company will remain closed from September 20 to September 26, 2023 (both days inclusive). Transfers received at the office of the Company's Shares Registrar, M/s Corplink (Pvt) Limited, Wings Arcade, 1-K Commercial, Model Town, Lahore, by the close of business on September 19, 2023 will be treated as in time for the purpose of payment of Final Dividend and to attend the Annual General Meeting (AGM).
5. The AGM of the shareholders of the Company will be held on Tuesday, September 26, 2023 at 10:00 a.m. at the Registered Office of the Company, situated at 21-Mauve Area, 3rd Road, Sector G-10/4, Islamabad.
6. The Annual Report of the Company will be transmitted through PUCARS at least 21 days before the AGM and will also be available on the Company's website atwww.mpcl.com.pk.

You may please inform the TRE Certificate holders of the Exchange, accordingly.

Very truly yours,

Muhammad Sajjad

Acting Company Secretary

Encl: As stated above

Annexure A