SNGPL’s net profits decline by 26% YoY due to higher finance cost

October 15, 2020 (MLN): Sui Northern Gas Pipelines Limited (SNGPL) has unveiled its financial results for the nine months ended March 31, 2020, as per which the net profits of the company have declined by 26.10% YoY to Rs 5.77 billion, compared to the profits of Rs 7.81 billion of the same period last year. 

This has translated into earning per share which clocked in at Rs 9.11 against Rs 12.33 in the aforementioned period.

The decline in profitability was mainly due to a significant rise in expected credit loss and higher finance cost.

According to the financial results issued by the company, its Gas sales improved slightly by 3.82% YoY during 9MFY20, while its cost of gas sales also showed a growth of 2.48% YoY, accordingly, the gross profit of the company increased significantly by 44% YoY to Rs 40 billion.

On the cost side, the selling cost went up by 23.27% YoY from Rs 28 billion to Rs 40.5 billion. Moreover, administrative costs rose by 3.85% to Rs 5.34 billion.  

The major blow to the company’s financial performance was higher finance cost which ballooned by 2 times YoY.

Meanwhile, the other highlight is the upsurge in expected credit loss which showed a growth of 93% YoY to Rs 1.79 billion.

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