SNGP declares Rs3 per share dividend

November 05, 2026 (MLN): Sui Northern Gas Pipelines Limited (PSX: SNGP) reported a modest 1% increase in its net profit for the fiscal year ended June 30, 2026 (FY26), reaching Rs14.81bn compared to Rs14.59bn in the previous fiscal year.

Alongside the annual financial results, the board of directors recommended a cash dividend of Rs3.00 per share (30%).

Reflecting this bottom-line performance, basic and diluted earnings per share (EPS) for the year expanded to Rs23.35, up from Rs23.01 recorded in FY25.

The company's core top line contracted during the period, as revenue from contracts with customers (gas sales) declined 13% to Rs1,154.92bn from Rs1,332.29bn in FY25.

After incorporating a negative tariff adjustment of Rs41.85bn (contrasting with a positive tariff adjustment of Rs76.23bn in FY25), net revenue and tariff adjustments settled 21% lower at Rs1,113.07bn compared to Rs1,408.52bn.

Cost of gas sales decreased 21% to Rs1,044.85bn from Rs1,328.07bn, leading to a 15% reduction in gross profit to Rs68.22bn against Rs80.45bn in FY25.

Other income declined 12% to Rs26.26bn from Rs29.80bn, bringing operating income net of cost of gas sales to Rs94.48bn (down 14% from Rs110.25bn).

On the operational side, recurring administrative and distribution overheads expanded, with selling costs rising 19% to Rs13.16bn (up from Rs11.05bn), administrative expenses increasing 17% to Rs13.91bn (up from Rs11.92bn), other expenses climbing 15% to Rs1.95bn, and net impairment losses on financial assets jumping over three-fold to Rs5.57bn from Rs1.65bn.

However, the absence of prior-year one-off charges such as the Rs27.62bn effect of settlement agreements on interest income/expense and Rs1.39bn in take-or-pay adjustments led total operating expenses to decline 37% to Rs34.59bn from Rs55.34bn.

Consequently, operating profit grew 9% to Rs59.89bn compared to Rs54.91bn in FY25.

Below the operating line, finance costs contracted 17% to Rs25.23bn from Rs30.47bn in FY25, lifting profit before levy and income tax by 42% to Rs34.66bn against Rs24.45bn.

This gain was partially trimmed by a minimum tax differential (levy) of Rs8.44bn (compared to nil in FY25), bringing profit before income tax to Rs26.21bn (up 7%).

Following an income tax expense of Rs11.41bn (up 16% from Rs9.85bn), Sui Northern Gas Pipelines Limited concluded the year with a net profit of Rs14.81bn.

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