Sui Northern Gas Pipelines Limited Announces Financial Results and Dividend for FY 2023

Lahore: Sui Northern Gas Pipelines Limited (SNGPL) has disclosed its financial outcomes for the fiscal year ending June 30, 2023, which include a final cash dividend of Rs.4.50 per share. The company also reported a significant audit observation and a legal challenge regarding misappropriation of inventory.

The Board of Directors convened on July 26, 2024, in Lahore, deciding on the shareholder rewards despite no allocation of bonus or right shares this year. The company finalized the year with a declared cash dividend representing a 45% payout, with no other corporate actions announced.

According to information available from the Pakistan Stock Exchange (PSX), the financial details reveal a gross profit of Rs. 127.46 billion, up from Rs. 85.52 billion the previous year, driven by a rise in tariff adjustments from Rs. 216.94 billion in 2022 to Rs. 377.51 billion in 2023. Operating profit also saw an increase to Rs. 136.29 billion from Rs. 72.80 billion in the prior year. The net profit after taxation amounted to Rs. 10.56 billion, marginally higher than the Rs. 10.37 billion recorded last year.

Further scrutiny is being directed towards an incident of misappropriation at the Central Base Manga store, with the company initiating criminal proceedings and undergoing a forensic audit. The financial implications of this event have led to a provision of Rs. 418.36 million in the financial statements.

The auditors have raised concerns related to the settlement of circular debt and tariff adjustments, which hinge on governmental action regarding intercorporate balances and potential increases in gas prices or subsidies.

The Annual General Meeting is scheduled for August 21, 2024, at Lahore. The entitlements will be dispensed to the shareholders listed as of August 13, 2024, with the Share Transfer Books to remain closed from August 14 to August 21, 2024.