SSGC profit plunges 82% in 1HFY26

February 27, 2026 (MLN): Sui Southern Gas Company Limited (PSX:SSGC) reported a net profit of Rs1.30bn for the half year ended December 31, 2025, which marks a steep 82% decline from the Rs7.06bn profit recorded in the same period last year.

The company's earnings per share (EPS) plummeted to Rs1 from Rs8 in the corresponding period of the previous year.

The company's top-line faced significant pressure, with gross revenue from gas sales declining 18% year-on-year to Rs202.58bn from Rs247.56bn.

Although tariff adjustments decreased by 62% to Rs7.59bn, net revenue still contracted by 14% to Rs194.99bn from Rs227.82bn in the prior period.

Cost of revenue decreased by 14% to Rs189.82bn from Rs219.85bn. However, because the absolute drop in net revenue was larger, gross profit shrank by 35% to Rs5.16bn from Rs7.97bn.

Operating expenses dealt a heavy blow to the company's profitability. While administrative and selling expenses rose moderately by 9% to Rs4.04bn, the allowance for expected credit loss spiked a staggering 2.8 times to Rs6.68bn from Rs2.38bn in H1 FY2025.

Fortunately, other income provided a massive lifeline, growing 30% to Rs16.70bn from Rs12.89bn. Despite this strong non-core injection, the heavy credit losses and lower gross margins pushed operating profit down 23% to Rs10.97bn from Rs14.27bn.

Further pressure came below the operating line as finance costs increased 20% to Rs8.06bn from Rs6.72bn.

Profit before levy and taxation fell 61% to Rs2.91bn.

The company then booked total levies of Rs951.50m, a 3.13 times increase over the prior year's Rs304.37m.

Consequently, profit before taxation reached Rs1.96bn, down 73% from Rs7.25bn in the prior period.

Adding to the bottom-line compression, the company recorded a taxation expense of Rs657.20m, a 3.38 times increase from Rs194.64m in the corresponding period last year.

Ultimately, the severe 82% contraction in net profit was driven by a combination of declining top-line sales, a massive surge in expected credit losses, higher finance costs, and an increased tax burden.

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