Karachi May 13 2025: Sui Southern Gas Company Limited (SSGC) has reported a notable turnaround in its financial performance, posting a profit of PKR 6.84 billion for the fiscal year ended June 30, 2024, compared to a loss of PKR 1.60 billion in the previous year, according to company announcement at Pakistan Stock Exchange.
Despite robust profit company has not announced any cash payout for the year.
The company’s net revenue rose marginally by 3% to PKR 465.9 billion, up from PKR 451.5 billion in FY23. This growth was driven by higher gas sales and an increase in tariff adjustments, although the latter declined sharply to PKR 53.2 billion from PKR 208.8 billion last year.
Despite a significant jump in the cost of gas sales — up 7.6% to PKR 455.5 billion — SSGC still managed to post a gross profit of PKR 10.4 billion, though this was down from PKR 28.2 billion a year earlier.
Operationally, the company saw improvements. Administrative and selling expenses were contained at PKR 7.18 billion, while other operating expenses dropped to PKR 22.85 billion from PKR 34.75 billion. Allowance for expected credit loss remained nearly flat at PKR 1.95 billion.
A boost in other income, which rose to PKR 44.2 billion from PKR 21.6 billion, significantly contributed to the company’s operating profit, which more than tripled to PKR 22.6 billion compared to PKR 7 billion in FY23.
Finance costs, however, surged to PKR 13.4 billion from PKR 8.6 billion, reflecting higher interest rates during the year. Even so, SSGC reported a pre-tax profit of PKR 9.2 billion. After accounting for minimum tax and final tax liabilities totaling PKR 2.37 billion, the company closed the year with a profit of PKR 6.84 billion.
Earnings per share stood at PKR 7.76, a significant rebound from a loss per share of PKR 1.82 in the previous year.
The strong results come amid broader efforts to address the circular debt issue in Pakistan’s energy sector and point to improved financial discipline and operational efficiency within the company.
Company’s trade debts include receivables of PKR 25,706 million and PKR 21,778 million from K-Electric Limited (KE) and Pakistan Steel Mills Corporation (Private) Limited (PSML), respectively. Significant portion of such receivables include overdue amounts, which have been considered good by management and classified as current assets in the unconsolidated financial statements.
Further, KE and PSML have disputed the Late Payment Surcharge (LPS) on their respective outstanding balances, as disclosed in the notes to the unconsolidated financial statement as unrecognized LPS. As a result, management has decided to recognize LPS from these entities
on a receipt basis, effective July 2012.
Due to the adverse operational and financial conditions of PSML and disputes with KE and PSML with the Company on LPS, and large accumulation of their respective overdue amounts, the auditor were unable to determine the extent to which the total amounts due from KE and PSML were likely to be recovered including the timeframe over which such recovery will be made.
