SNGP ends FY25 with lower profit amid tariff headwinds

November 3, 2025 (MLN): Sui Northern Gas Pipelines Limited (PSX: SNGP) revealed its financial results for the fiscal year ended June 30, 2025, reporting a profit after tax of Rs14.59 billion, marking a 23% decline from Rs18.98bn recorded in the previous fiscal year.

Earnings per share fell 23% to Rs23.01 compared to Rs29.92 in FY24.

Revenue from contracts with customers gas sales decreased 3% year-on-year to Rs1.33tr from Rs1.37tr, primarily showing lower tariff adjustments.

The tariff adjustment dropped sharply by 52% to Rs76.23bn from Rs158.19bn, resulting in total revenue and tariff adjustment of Rs1.41tr, down 8% from last year’s Rs1.53tr.

The cost of gas sales contracted 11% to Rs1.33tr from Rs1.49tr, leading to an 81% surge in gross profit to Rs80.48bn compared to Rs44.41bn in FY24, driven by improved margins and cost efficiencies.

Other income declined 46% to Rs29.77bn from Rs54.64bn in the previous year. Consequently, operating income net of cost of gas sales rose 11% to Rs110.25bn from Rs99.06bn in FY24.

On the expense front, selling costs fell 3% to Rs11.05bn, while administrative expenses remained flat at Rs11.92bn. Other expenses saw a significant reduction of 37% to Rs1.70bn from Rs2.69bn.

Furthermore, net impairment loss on financial assets dropped 59% to Rs1.65bn, while the take-or-pay adjustment rose 29% to Rs1.39bn.

Total operating expenses surged 78% to Rs55.34bn, showing settlement-related adjustments and higher one-time charges during the year. Consequently, operating profit fell 19% to Rs54.91bn from Rs67.88bn in FY24.

Finance cost decreased 19% to Rs30.47bn, providing partial relief. Profit before levy and income tax stood at Rs24.45bn, compared to Rs29.84bn last year, showing an 18% decline.

After accounting for a minimum tax differential levy of Rs8.03bn in FY24 (absent this year), profit before income tax rose 12% to Rs24.45bn from Rs21.81bn in FY24.

The company incurred Rs9.85bn in income tax, sharply higher than Rs2.84bn a year earlier, resulting in a profit for the year of Rs14.59bn, down 23% year-on-year.

SNGP’s performance in FY25 showed margin recovery and operational efficiency gains; however, the overall profitability was impacted by lower tariff adjustments, reduced other income, and elevated tax charges.

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