SSGC Seeks Extension for Annual General Meeting Amid Regulatory Delays

Islamabad: Sui Southern Gas Company Limited (SSGC) has formally requested an extension to convene its Annual General Meeting (AGM) and lay the financial statements for the fiscal year ending June 30, 2023. The request, pending review, cites significant delays due to regulatory processes beyond the company’s control.

SSGC’s application, lodged with the Securities and Exchange Commission of Pakistan (SECP) on March 5, 2024, seeks to extend the deadline to October 31, 2024. This follows a previous extension granted by SECP, allowing the company to delay its AGM until March 31, 2024. The extended timeline is due to pending decisions from the Oil and Gas Regulatory Authority (OGRA) on the Final Revenue Requirement (FRR) for the fiscal year 2022-23, which affects the company’s financial statements.

According to information available from the Pakistan Stock Exchange (PSX), the review of SSGC’s financial processes is a critical step given the company’s role in a regulated industry. OGRA conducted a hearing on April 23, 2024, to address SSGC’s FRR petition, with a decision expected by early August 2024. Following this, SSGC plans to finalize its financial statements and schedule the AGM by the end of October.

The company’s regulatory challenges began with the delay in OGRA’s decision, initially scheduled for October 6, 2023, for the previous fiscal year but extended multiple times due to various procedural holdups. These delays have also impacted the preparation and dissemination of interim financial statements, which SSGC assures will be finalized post the completion of the current fiscal year’s statements.

SECP has instructed SSGC to comply with the statutory requirement to hold its AGM by the newly requested date, emphasizing the importance of adherence to regulatory standards and timelines. Non-compliance may trigger adjudication proceedings under section 148 of the Companies Act.

The requested extension reflects ongoing challenges within regulatory frameworks that impact timely financial disclosures and shareholder communications. SSGC has committed to resolving these issues promptly to ensure compliance and maintain transparency with its shareholders.