SNGP 9MFY26 profit holds steady

April 29, 2026 (MLN):  Sui Northern Gas Pipelines Limited (PSX: SNGP) reported a largely stable bottom line for the nine months ended March 31, 2026, recording a net profit of Rs10.10bn compared to Rs10.14bn in the corresponding period last year.

Reflecting this flat performance, the company's basic and diluted earnings per share (EPS) edged down slightly to Rs15.92 from Rs15.98 in 9MFY25.

The relatively stable net profit masked a turbulent period for the company's core top-line and margins.

SNGP's revenue from gas sales fell by 7% year-on-year to Rs942.01bn. This was severely compounded by a massive negative tariff adjustment of Rs43.81bn, a sharp reversal from the positive Rs48.50bn adjustment recorded last year.

Consequently, the total revenue and tariff adjustment contracted by 16% to Rs898.20bn.

While the cost of gas sales also decreased by 13% to Rs866.23bn, the plunging revenue caused the gross profit to collapse by 53%, dropping to Rs31.97bn from Rs67.97bn in the prior year.

Despite the crash in gross margins, SNGP managed to protect its operating profit through significant cost savings and higher secondary income.

"Other income" grew by a healthy 33% to Rs28.79bn.

More importantly, total operating expenses plunged by 56% to Rs21.22bn.

This massive reduction was primarily due to the absence of a heavy Rs27.62bn charge related to the "Effect of settlement agreements on interest income/expense" that was booked in 9MFY25.

The company also saw a 67% drop in net impairment losses on financial assets. Buffered by these factors, the operating profit only dipped by 4% to Rs39.54bn.

Below the operating line, SNGP found further relief as finance costs dropped by 19%, falling to Rs19.08bn from Rs23.57bn.

This reduction in debt-servicing costs pushed the profit before minimum and income taxes up by 16% to Rs20.46bn.

The company then absorbed a new minimum tax differential levy of Rs2.26bn and an 8% higher income tax expense of Rs8.10bn.

Ultimately, SNGP successfully navigated the severe top-line contraction to close the nine-month period with its bottom line intact at Rs10.10bn.

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