Mari Gas announces DPS of PkR 1.0

Karachi, June 06, 2012 (PPI-OT): Mari Gas Co. Ltd. (MARI) has announced cash dividend of PkR 1.0 per share in the Board Meeting held on June 05, 2012 for consideration of proposal for the declaration of any entitlement.

According to Alfalah Securities Limited, the shareholders will be entitled for the dividend as per the holding as on June 27, 2012. This is the second interim dividend of FY12 announced by the company taking the cumulative dividend to PkR 3.268 per share.

Mari operates under the Gas Price agreement, according to which the well head gas price will be at the minimum level to ensure revenue from gas and other income are sufficient to provide shareholders a minimum return of 30% net of taxes and deductibles. The return is escalated by 1% if gas production is additional 20 mmcfd above 425mmcfd up to a maximum of 45%. This means that the DPS can rise to a maximum of PkR 4.5 translating in the dividend yield of 5.1% where the remaining profit would go to un-distributable reserve.

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