Non‐customer gas theft added in SSGC’s UFG estimation – Alfalah Securities Limited

Karachi, October 16, 2012 (PPI-OT): Sui Southern Gas Company (SSGC) has been allowed to include non‐customer gas theft in unaccounted for gas (UFG) estimation, as reported in the newspaper.

According to Alfalah Securities Limited, the non‐customer gas theft is already included in the UFG calculation by Sui Northern Gas Pipeline (SNGP). At present the UFG losses is at around 10% which is still higher than the region. SSGC earns a guaranteed return of 17% on its average net operating asset net of UFG penalty, non‐operating income and financial charges. Therefore, the changes in UFG estimation affect the profitability to the extent of changes in UFG penalty and in case non‐customer gas theft is excluded from the penalty, it would have a positive impact on the earnings of Sui Companies while the consumer prices of gas are not affected by such changes.