SSGC reports steep 80% drop in 9MFY26 profit

April 29, 2026 (MLN): Sui Southern Gas Company Limited (PSX: SSGC) reported a sharp 79.63% year-on-year contraction in profit for the period for the nine months ended March 31, 2026, recording Rs1.53bn compared to Rs7.49bn in the corresponding period last year.

The company's basic and diluted earnings per share (EPS) declined 79.65% to Rs1.73, down from Rs8.50 in 9MFY25, showing significant value erosion for shareholders during the period.

SSGC's net revenue declined 18.30% to Rs289.66bn from Rs354.53bn, as gas sales contracted 18.31% to Rs289.26bn.

Cost of revenue declined at a lesser pace of 16.91% to Rs287.15bn from Rs345.59bn, failing to fully offset the revenue shortfall.

This resulted in gross profit contracting sharply by 71.84% to Rs2.52bn from Rs8.94bn, severely compressing the earnings foundation.

Administrative and selling expenses rose 10.33% to Rs6.03bn while other operating expenses declined 76.30% to Rs235.41m, providing partial relief.

However, the allowance for expected credit losses more than doubled to Rs7.99bn from Rs3.11bn, driving total operating expenses up by 48.97% to Rs14.26bn and pushing the company into an operating loss before other income of Rs11.74bn against a loss of Rs631.03m in the prior year.

Other income expanded by a meaningful 51.10% to Rs27.36bn from Rs18.11bn, emerging as the critical line item that rescued the company's operating position, converting the pre-other-income loss into an operating profit of Rs15.62bn, though still 10.61% below the Rs17.48bn recorded in 9MFY25.

Finance costs escalated by 37.39% to Rs12.25bn from Rs8.92bn, emerging as a significant drag on earnings. Profit before levy and taxation consequently declined 60.60% to Rs3.37bn from Rs8.56bn.

The levy subtotal rose 25.52% to Rs975.20m from Rs776.95m, further compressing pre-tax earnings. Profit before taxation declined 69.19% to Rs2.40bn from Rs7.79bn.

Taxation nearly tripled to Rs872.44m from Rs293.33m, reflecting an elevated effective tax rate relative to the compressed earnings base.

After accounting for taxation, Sui Southern Gas Company Limited closed the nine-month period with a profit for the period of Rs1.53bn, representing a 79.63% contraction over the Rs7.49bn reported in the corresponding period of last year.

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