Sui Northern Gas Pipelines Limited (PSX: SNGP) reported a profit after tax (PAT) of Rs. 10.564 billion for the fiscal year ending June 30, 2023 (FY23), marking a 2 percent increase compared to the previous fiscal year. The company’s earnings per share (EPS) for FY23 were Rs. 16.66. In the fourth quarter of FY23, the earnings reached Rs. 2.165 billion (EPS of Rs. 3.41), doubling from the previous year’s figures. SNGP also declared a final cash dividend of Rs. 4.50 per share, up from Rs. 4.00 per share in FY22. For the first quarter of FY24, the company recorded a PAT of Rs. 3.706 billion (EPS of Rs. 5.84), a 44 percent year-over-year (YoY) increase.
In FY23, SNGP’s net sales grew by 13 percent YoY, driven by a revision in consumer gas tariffs by the Oil and Gas Regulatory Authority (OGRA). However, prices for Re-gasified Liquefied Natural Gas (RLNG) dropped by 5 percent YoY due to lower international Brent oil prices. RLNG imports decreased by 16 percent YoY, while gas production fell by 4 percent YoY. In 1QFY24, the company’s revenue rose by 13 percent YoY, attributed to a 12 percent YoY increase in RLNG imports and higher consumer gas rates, despite a 2 percent YoY decline in local gas production.
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The operating profit for FY23 surged by 87 percent YoY to Rs. 136.3 billion, supported by a reduction in unaccounted-for gas losses (UFG) due to effective control measures and a decrease in domestic gas volumes, which offset the impact of a higher weighted average cost of gas. In 1QFY24, the operating profit increased by 95 percent YoY, benefiting from a rise in Return on Assets (ROA). However, finance costs doubled YoY in FY23, reaching Rs. 120.5 billion due to higher interest rates, and similarly doubled YoY in 1QFY24. The company’s effective tax rate remained unchanged at 33 percent in FY23, while it was 39 percent in 1QFY24, compared to 40 percent in 1QFY23.
