AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: Ghani Chemical Industries Limited (GCIL) announced significant growth in its fiscal year 2025 performance, highlighted by a 2.5 times increase in earnings per share (EPS) to Rs3.99. This growth was driven by a 16 percentage point improvement in gross margins and a 37% increase in topline revenue, primarily from its medical gases segment.
The company’s gross margin improvement to 46% was attributed to efficiency gains from its Air Separation Unit (ASU) plants. GCIL now operates five ASU plants across the country, including a new 275-ton-per-day unit commissioned in April 2025 at Hattar, Khyber Pakhtunkhwa.
In a strategic move, GCIL has entered a joint venture with Mari Energies to meet liquefied natural gas (LNG) and carbon dioxide (CO2) demand in off-grid regions lacking access to Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipelines Limited (SNGPL) networks. The project, with a capacity of 80,000 tons per annum (TPA) of LNG and 55,000 TPA of CO2, is anticipated to generate Rs17 billion in annual revenue, with GCIL holding a 49% stake.
The joint venture aims to address national LNG demand, which is currently 7-8 million tons annually, by offering competitive pricing near US$10 per million British thermal units (MMBTU). The LNG product, consisting of 99% natural gas with low nitrogen, is positioned as a viable alternative to liquefied petroleum gas (LPG) in underserved markets.
GCIL’s project, costing Rs14 billion, will be primarily financed through supplier credit, with repayments expected to begin post-commissioning and span approximately two years. The first phase is scheduled for commissioning by the end of next year, with management confident about minimal curtailment risks.
The company also highlighted potential growth in ship-breaking, noting that the government’s green yard initiative could double volumes in the coming months. Previously, GCIL commanded roughly 50% market share in shipyard oxygen supply during 2017-2018.
In the medical segment, demand is projected to remain stable, with organic growth slightly exceeding industry trends. Routine price adjustments will continue, and any significant rise in electricity costs may lead to further price revisions.
Management indicated that a tariff hike seems likely, though the National Electric Power Regulatory Authority (NEPRA) has yet to issue a notice. While margins are expected to hold steady this financial year, maintaining current levels in the medium term may be challenging due to an already elevated base.