Sui Southern Gas 3MFY26 profit drops to Rs785m

December 22, 2025 (MLN):  Sui Southern Gas Company Limited (PSX: SSGC) reported a profit after tax of Rs785.1m for the quarter ended September 30, 2025, down 84.9% from Rs5.19bn in the corresponding quarter last year.

Earnings per share declined 84.9% to Rs0.89 compared to Rs5.9.

Revenue from contracts with customers (gas sales) decreased 23% year-on-year to Rs104.12bn from Rs135.16bn, a significantly lower sales during the quarter. Tariff adjustment declined 41.4% to Rs10.53bn from Rs17.95bn.

Net revenue declined 20.1% to Rs93.6bn from Rs117.21bn in 3MFY26. Cost of gas sales decreased 17.2% to Rs92.85bn from Rs112.17bn.

Gross profit plunged 85.1% to Rs750.8m against Rs5.04bn in 3MFY26, with the gross margin contracting sharply to 0.8% from 4.3% in the prior year quarter, which indicates a severe margin compression.

Administrative and selling expenses increased 4.1% to Rs1.93bn from Rs1.85bn, while other operating expenses declined 66.8% to Rs89.4m from Rs268.9m.

Allowance for expected credit loss increased 44.5% to Rs2.59bn from Rs1.79bn last year. Total operating expenses climbed 17.7% to Rs4.6bn from Rs3.91bn.

Operating (loss)/profit before other income stood at a loss of Rs3.85bn compared to a profit of Rs1.13bn.

Other income increased 20.5% to Rs9.15bn from Rs7.6bn in the previous year, providing crucial support to profitability.

The company recorded an operating profit of Rs5.3bn, down 39.2% from Rs8.72bn.

Finance costs declined 3.5% to Rs3.3bn from Rs3.42bn, providing some relief to the bottom line.

Profit before levy and taxation stood at Rs2bn, down 62.3% from Rs5.31bn.

Minimum tax differential surged 14.6 times to Rs1.06bn from Rs68.1m. Final tax declined 89.7% to Rs285 thousand from Rs2.77m. Total levy increased 14 times to Rs1.06bn from Rs70.9m.

Profit before taxation decreased 82% to Rs941.9m from Rs5.24bn.

Taxation increased 3.7 times to Rs156.8m from Rs42.2m in the prior period.

The company concluded 3MFY26 with a net profit of Rs785.1m, delivered a net profit margin of 0.8% compared to 4.4% in last year.

The profit decline was driven by a dramatic 85.1% collapse in gross profit due to severe margin compression, substantially higher expected credit loss provisions, and a 14-fold increase in levy charges, which could not be offset by higher other income and lower finance costs.

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