April 22, 2019 (MLN): Sui Northern Gas Pipeline Company (SNGPL) has announced its financial earning result for the year ended June 31, 2018, according to which the Company has posted a Profit after Tax of Rs. 11.1 billion (EPS: Rs. 17.54), indicating an improvement of 29% as compared to the prior year.
The improvement in sales revenue by 40%, which was a result of incremental capital expenditure incurred by the company, had a significant influence on the bottom-line earnings.
However, the company received a major blow in the form of increase in non-core expenses by 260% and Finance costs by 102%.
The company announced a final Cash Dividend for the year ended June 30, 2018 at Rs. 5.55 per share i.e. 55.5%. This is in addition to interim Cash Dividend already paid at Rs. 1.5 per share, i.e. 15% for the 1st Quarter ended September 31, 2017.
|
Profit and loss account for the year ended June 30 2018 (Rupees'000) |
|||
|---|---|---|---|
|
Jun-18 |
Jun-17 |
% Change |
|
|
Gas sales |
446,765,837 |
319,696,374 |
40% |
|
Add: Differential margins |
57,016,553 |
26,611,910 |
114% |
|
Less: Cost of gas sales |
-476,785,651 |
-326,609,632 |
46% |
|
Gross profit |
26,996,739 |
19,698,652 |
37% |
|
Other income |
14,159,487 |
10,992,947 |
29% |
|
Selling cost |
-5,282,717 |
-5,646,155 |
-6% |
|
Administrative expenses |
-6,965,835 |
-6,426,006 |
8% |
|
Other operating expenses |
-2,626,118 |
-729,719 |
260% |
|
Operating profit |
26,281,556 |
17,889,719 |
47% |
|
Finance cost |
-10,806,155 |
-5,350,520 |
102% |
|
Profit before taxation |
15,475,401 |
12,539,199 |
23% |
|
Taxation |
-4,353,926 |
-3,924,699 |
11% |
|
Profit for the year |
11,121,475 |
8,614,500 |
29% |
|
Earnings per share – basic and diluted – (Rupees) |
17.54 |
13.58 |
29% |
On the very same day, SNGPL announced its financial result for the Quarter ended September 30, 2018, which shows that the Profits after Tax were recorded at Rs. 2.5 billion (EPS: Rs 4.09), approximately 35% higher than the earnings of same period last year.
The key highlights of this period were a 100% increase in Gross Profit margins, which was a result of increase in sales revenue by 75%. However, the outcome would have been even better had the Cost of Sales not increased by 70%.
Moreover, the financial costs of the company surged by a whopping margin of 152%, whereas taxation expense increased by 44%.
Nevertheless, the overall impact on net profits was way better than what the market participants expected.
The Company also paid an interim cash dividend for the quarter ended September 31, 2018 at Rs. 1.5 per share i.e. 15%.
|
Profit and loss account for the Quarter ended September 30 2018 (Rupees'000) |
|||
|---|---|---|---|
|
Sep-18 |
Sep-17 |
% Change |
|
|
Gas sales |
158,035,116 |
90,216,147 |
75% |
|
Add: Differential margins |
2,184,990 |
3,462,787 |
-37% |
|
Less: Cost of gas sales |
152,084,625 |
89,617,277 |
70% |
|
Gross profit |
8,135,481 |
4,061,657 |
100% |
|
Other income |
3,935,535 |
3,150,996 |
25% |
|
Selling cost |
1,759,582 |
1,133,536 |
55% |
|
Administrative expenses |
1,552,982 |
1,369,299 |
13% |
|
Other operating expenses |
384,114 |
146,551 |
162% |
|
Operating profit |
8,374,338 |
4,563,267 |
84% |
|
Finance cost |
4,592,450 |
1,822,397 |
152% |
|
Profit before taxation |
3,781,888 |
2,740,870 |
38% |
|
Taxation |
1,186,085 |
822,260 |
44% |
|
Profit for the year |
2,595,803 |
1,918,610 |
35% |
|
Earnings per share – basic and diluted – (Rupees) |
4.09 |
3.03 |
35% |
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