Mari Petroleum becomes largest company on Pakistan Stock Exchange

Mari Petroleum has surpassed Oil & Gas Development Company (OGDC) to become the largest firm listed on the Pakistan Stock Exchange (PSX) based on market capitalization.

Mari Petroleum's market cap has reached PKR 984 billion ($3.5 billion), while OGDC's market cap stands at PKR 963 billion ($3.4 billion).

Pakistan Petroleum Limited (PPL) is the third largest company on PSX with a market cap of PKR 548 billion, followed by Fauji Fertilizer (FFC) at number four with market cap of PKR 508 billion and United Bank (UBL) at 5th spot with market cap of 424 billion.

Analysts attribute Mari Petroleum's share price increase to speculated discoveries of significant oil and gas reserves at Shewa 2 in Waziristan.

An analyst from KASB Securities forecasts a 9% compound annual growth rate in earnings from FY25 to FY29.

Mari Petroleum has initiated the Swings Volume Project to enhance production and reserves across the Mari Development & Production Lease (MARI D&PL).

This development program is tailored to each formation, leading to reserve upgrades and increased production above concession benchmarks. The company's exploration program aims to acquire high-impact exploration acreage over the next five years, focusing on high-risk, high-impact "Frontier" zones, with a target reserve replacement ratio of 100%.

Additionally, Mari is diversifying into high-energy utilization data centers for AI/HPC to support the mining industry with a PKR 10 billion investment. The company is also exploring potential joint ventures with local and international mining firms to further develop the region's mining potential.

Mari Petroleum posted a net profit of PKR 19.22 billion (EPS: 16.01) for the quarter ended September 30, 2024. Analysts expect the company to continue outperforming its peers, driven by the monetization of recent discoveries and a robust exploration program that promises future reserve upgrades.