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Lahore: Sui Northern Gas Pipelines Ltd (SNGP) unveiled significant financial gains and expansion plans during its FY24 analyst briefing. The company reported a substantial 80% year-over-year increase in net profits, reaching PkR19 billion, alongside 12% growth in revenues totaling PkR1.53 trillion.
The revenue boost was attributed to a combination of higher gas sales volumes, which rose to 1,683 mmcfd, and increased average prescribed prices. The company also achieved a significant reduction in unaccounted-for-gas (UFG) levels, now at an 18-year low of 4.93%, down from 5.15% the previous year.
SNGP highlighted the successful completion of the Bannu West-1 pipeline project, adding 95 mmcfd of capacity to the system. Looking forward, the company plans to undertake the Kot Palak pipeline project to bring an additional 45 mmcfd online, involving the development of 77km of new pipeline and enhancement of 188km of existing infrastructure.
The company is also addressing low pressure issues in the Islamabad and Rawalpindi regions through ongoing augmentation works. A shift towards diversification into EPC services was noted, with recent projects completed for SSGC and Parco Gunvor.
In terms of consumer demographics, SNGP serves 4.7 million protected consumers with a consumption of 5.8 bcf, alongside 2.9 million non-protected consumers accounting for 7 bcf. The Government of Pakistan has engaged KPMG to assist in resolving the historical circular debt, a persistent issue in the sector.
Recent gas price hikes have mitigated new circular debt accumulation, although reduced offtake from captive power plants caused an increase in receivables in early 2025. The company is working with authorities to clarify the scope of a newly imposed levy on captive power plants.
Looking ahead, SNGP plans to maintain an annual capital expenditure of approximately PkR30 billion, focusing on enhancing indigenous gas connectivity. Improvements in RLNG-based recoveries from power plants have been recorded, with expectations of continued cash flow improvement.
The company’s future strategies and financial outlook underscore its commitment to addressing industry challenges while pursuing growth opportunities.