SSGC profit nosedives 58% YoY

November 05, 2025 (MLN): Sui Southern Gas Company Limited (PSX: SSGC) reported a profit after tax of Rs3.44bn for the year ended June 30, 2025, down 58% from Rs8.29bn in the corresponding period last year.

Earnings per share declined 58% to Rs3.91 compared to Rs9.41 in FY24.

The company declared cash dividend at Rs0.5 per share.

Revenue from contracts with customers (gas sales) increased marginally by 1% year-on-year to Rs450.7bn from Rs447.32bn. Tariff adjustment turned negative at Rs4.26bn compared to a positive adjustment of Rs53.21bn in FY24.

Net revenue declined 11% to Rs446.44bn from Rs500.53bn in FY24. Cost of gas sales decreased 11% to Rs434.1bn from Rs487.76bn.

Gross profit contracted 3% to Rs12.34bn against Rs12.77bn in FY24, with the gross margin declining marginally to 2.8% from 2.6% in the prior year.

Administrative and selling expenses increased 2% to Rs7.58bn from Rs7.4bn, while other operating expenses declined 86% to Rs3.17bn from Rs22.85bn last year.

Operating expenses net decreased 79% to Rs4.12bn from Rs19.44bn in FY24.

Other operating income declined 45% to Rs24.63bn from Rs44.59bn in the previous year.

The company recorded an operating profit of Rs20.51bn, down 18% from Rs25.15bn in FY24.

Finance costs declined 9% to Rs12.15bn from Rs13.4bn, providing some relief to the bottom line.

Profit before levy and taxation stood at Rs8.36bn, down 29% from Rs11.75bn in FY24. The company reported no levy in FY25, which was absent in the prior year as well.

Profit before taxation decreased 58% to Rs3.95bn from Rs9.38bn in FY24.

Taxation declined 53% to Rs507.5m from Rs1.09bn in the prior period.

The company concluded FY25 with a net profit of Rs3.44bn, delivering a net profit margin of 0.8% compared to 1.7% in FY24.

The profit decline was driven by a sharp reduction in other operating income (down 45%), the absence of significant tariff adjustments, and a substantial increase in expected credit loss provisions, which more than offset the benefits from lower operating expenses and reduced finance costs, reflecting the challenging operating environment in Pakistan's gas distribution sector.

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