Sul Northern Gas Pipelines Reports Substantial Growth in Profit and Expands Infrastructure

Islamabad: Sul Northern Gas Pipelines Limited has announced a significant increase in its profit after tax for the period ending September 30, 2023. The company reported a profit after tax of Rs. 3,706 million, a substantial rise from Rs. 2,577 million during the same period last year.

According to information available from the Pakistan Stock Exchange (PSX), the earnings per share (EPS) also increased to Rs. 5.84 from Rs. 4.06 recorded in the previous year. This growth in profitability can be attributed to several operational improvements and regulatory changes. Notably, the Unaccounted-For Gas (UFG) losses decreased from 6,646 MMCF during July-September 2022 to 4,926 MMCF in the current review period, resulting in zero UFG disallowance, a significant improvement from Rs. 1,549 million disallowance last year. Additionally, the guaranteed rate of return on assets under the tariff regime saw an increase from 16.60% in FY 2022-23 to 20.64% for FY 2023-24.

During this period, the company has actively expanded its infrastructure. Notable projects include laying 28.18 kilometers of transmission lines and 233.833 kilometers of distribution mains to enhance customer satisfaction through improved gas pressure and accessibility. Major ongoing and future projects include the 18” dia x 230 km Bannu West Well- Daud Khel Transmission Line, which is crucial for integrating newly discovered gas fields into the national grid. Significant progress has been made, with 174.1 km of the pipeline laid and 74.05 km commissioned.

Other ongoing projects aimed at addressing system capacity constraints include the Transmission Pipeline from Charsadda-Khazana-Tangi and the Lahore Augmentation/Bifurcation Project. The company plans to continue these enhancements to meet the growing energy demands of Pakistan.

Acknowledging the support from stakeholders and regulatory bodies, Sul Northern Gas Pipelines expressed gratitude towards the Government of Pakistan, Ministry of Energy (Petroleum Division), and the Oil and Gas Regulatory Authority (OGRA) for their guidance and support. The company also appreciated the dedication of its employees, whose efforts are pivotal in sustaining operational success and growth.

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