SNGP profit rises 5% on strong margins, lower finance costs

November 28, 2025 (MLN): Sui Northern Gas Pipelines Limited (PSX: SNGP) reported a profit after tax of Rs3.45 billion for the quarter ended September 30, 2025, showing a 5% increase compared to Rs3.28bn in the same period last year.

Earnings per share rose to Rs5.43, up 4.8% year-on-year, demonstrating resilience in the company’s bottom line despite operational and revenue pressures during the quarter.

The company recorded a net profit margin of 1.08%, slightly higher than the corresponding period last year.

Revenue from contracts with customers declined 5.6% to Rs369.47bn from Rs391.57bn in 3QCY24, primarily due to a significant rise in the tariff adjustment, which expanded 69% to Rs50.87bn.

As a result, revenue inclusive of the tariff adjustment dropped 11.9% to Rs318.60bn compared to Rs361.51bn last year.

However, the reduction in the cost of gas sales, which fell 13.2% to Rs307.57bn, supported a strong recovery in margins, enabling gross profit to rise sharply 54.8% to Rs11.03bn against Rs7.12bn a year earlier, translating into a gross profit margin of 3.46%, up significantly from the previous period.

Other income declined sharply by 34.8% to Rs8.05bn, contributing to operating income (net of cost of gas sales) slipping slightly by 2% to Rs19.08bn.

The company also faced higher expenditure during the quarter, with selling costs rising 17% to Rs3.43bn and administrative expenses increasing 26.8% to Rs2.73bn.

Other expenses inched up 11%, while net impairment loss on financial assets dropped significantly by 89% to Rs179.8m, partially offsetting the escalation in operating costs.

Overall, total operating expenses surged 70% to Rs6.34bn from Rs3.73bn last year.

Operating profit fell 19% to Rs12.74bn compared to Rs15.74bn in 3QCY24, showing the strain from higher expenses and lower other income.

However, reduced finance costs down 33% to Rs6.54bn from Rs9.78bn helped stabilize pre-tax earnings, which inched up 4% to Rs6.20bn. Income tax expense rose slightly by 2.7% to Rs2.76bn.

Copyright Mettis Link News