Sui Northern Gas Pipelines Limited Reports Modest Profit Growth in Q1

Lahore: Sui Northern Gas Pipelines Limited (SNGPL) has reported a modest increase in its profits for the first quarter ended September 30, 2023. The Lahore-based company’s board of directors, in a meeting on July 26, 2024, released financial statements indicating no dividends or shares were distributed, maintaining a steady course from previous fiscal strategies.

The financial results for the period showed a growth in revenue from contracts with customers—primarily gas sales—which rose from 297.74 million in the previous year to 318.47 million. Additionally, the company benefited from a tariff adjustment, adding approximately 70.93 million to its revenue, marking an increase from 46.02 million in the same quarter the previous year. This adjustment brought the total revenue to approximately 389.41 million against 343.76 million recorded last year.

Despite the increase in gross revenue, the cost of gas sales also saw a rise, reaching 347.08 million compared to 321.90 million in September 2022, which resulted in a gross profit of 42.32 million, nearly double that of the 21.87 million reported last year. The company also noted an increase in other operating income, which contributed an additional 11.50 million, compared to 8.56 million in the corresponding period.

Operating expenses were slightly down due to lower selling costs and administrative expenses totaling approximately 5.15 million against 5.50 million last year. However, finance costs significantly increased to 42.60 million, up from 20.59 million, impacting the net profit.

According to information available from the Pakistan Stock Exchange (PSX), the company’s profit before taxation stood at 6.08 million, up from 4.33 million in the previous year, and after accounting for taxation, the net profit was 3.71 million compared to 2.58 million. The earnings per share also saw an increase, from 4.06 to 5.84.

The company’s quarterly report will be transmitted through PUCARS separately within the specified timeframe, providing further details to investors and stakeholders. As indicated, all entitlements or corporate actions reported by the board were nil, reflecting a strategy of stability in the face of economic fluctuations.