July 12, 2021 (MLN): Sui Southern Gas Company Limited (SSGC) has revealed its financial results for the year ended on June 30th, 2019 as per which the company posted net loss worth Rs18.36bn, depicting a 24% surge as compared to the loss of Rs14.8bn in FY18.
This reflected in company’s loss per share which stood at Rs20.86 in FY19, depicting a notable increase in loss per share by Rs4 as compared to the same period last year (SPLY).
As per financial statement issued to PSX, the volume of SSGC’s sales increased by 36.75%, reached to Rs251.64bn in 2019 against the SPLY. The company paid Rs32.38bn as sales tax against Rs25.25bn paid in the same account in the corresponding period last year.
The company also received a relief of Rs84.88bn on gas development surcharge during the period under review, depicting a whopping surge of 3.74x against Rs22.64bn paid in the same account in the SPLY. Accordingly, company’s net sales climbed up by 67.51% YoY to Rs297bn from Rs177.4bn reported in FY18.
On the cost front, the cost of company’s cost of sales stood atRs295.12bn in FY2019 against Rs187bn in the SPLY, posted a sharp increase of approximately 57% YoY.
In addition, the company also observed impairment loss against financial assets in FY19 which stood at Rs849.49million.
While, other operating expenses grew by 3.7x to Rs20.68bn as compared to expenses Rs5.51bn incurred in FY18.
During the year, the other income recorded a meager increment of 1.5% to stand at 14.4bn against Rs14.19billion in SPLY.
On the other hand, the finance cost jumped to Rs6.75bn, swelled by 33.45% against Rs5bn which put a further dent on company’s net income. As a result, the company witnessed increase in loss before taxation by 61% to stand at Rs16.78bn against Rs10.75 in FY18.
From the taxation side, company received some breather as the tax expenses during FY19 posted a significant decline of 61% to Rs1.57bn as compared to Rs4.04bn paid in the corresponding period last year.
Going by the notification further, the company, along with the financial results, published some excerpts from the Auditors report, which are as follows:
“Interest accrued includes interest receivable of Rs7,547mn and Rs3,741mn from Sui Northern Gas Pipeline Limited (SNGPL) and Water and Power Development Authority (WAPDA) respectively. These have been accounted for in line with Company's policy of charging LPS on overdue amounts, but have not been acknowledged by the counter-party. Due to dispute with WAPDA, and large accumulation of their respective overdue amounts of interest, we were unable to determine the extent to which the interest accrued amounts due from SNGPL and WAPDA are likely to be recovered and the timeframe over which such recovery will be made.’’
“On 30 April, 2018, the international Court of Arbitration decided against the Company in the case with Habibullah Coastal Private Company Limited (HCPCL) and imposed liquidated damages amounting to Rs4,158mn. Prior to the decision, the Economic Coordination Committee (ECC) through its meeting held on 07 February, 2018 had proposed waiver of liquidated damages and directed Ministry of Energy – Petroleum Division to work out modalities in consultation with all stakeholders. Based on that decision, management has recognised a receivable of Rs4,158mn (2018: 3,788mn) from HCPCL.”
“However, to date, no agreement has been finalized between the relevant stakeholders. In the absence of the agreement, there is no contractual right to receive cash or financial asset from HCPCL and the requirements of IFRS 9 'Financial instruments' are not met. Had management not recognised this receivable, the loss before tax would have increased by Rs4,158mn (2018:3,788mn) and net assets would have reduced by Rs2,952mn (2018: 2,652mn).”
Moreover, the Company has reversed the late payment surcharge (LPS) expense of Rs26,222mn on delayed payables pertaining to gas supplied by Government Controlled E & P Companies i.e, Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL) and Government Holding (Private) Limited (GHPL) with effect from July 1, 2012 to June 30, 2016 and not recorded LPS expense for the year ended June 30, 2017, June 30, 2018 and June 30, 2019 amounting to Rs7,569mn, Rs7,477mn and Rs10,525mn, the notification added.
|
Consolidated Profit and Loss Statement for the Year 2019 ('000 Rupees) |
|||
|---|---|---|---|
|
2019 |
2018 |
% Change |
|
|
Sales |
251,645,232 |
184,014,613 |
36.75% |
|
Sales tax |
(32,381,199) |
(25,251,284) |
28.24% |
|
219,264,033 |
158,763,329 |
38.11% |
|
|
Gas development surcharge |
84,884,740 |
22,645,175 |
274.85% |
|
RLNG diffrential margin |
(6,982,069) |
(4,004,081) |
74.37% |
|
Net sales |
297,166,704 |
177,404,423 |
67.51% |
|
Cost of sales |
(295,127,307) |
(187,195,880) |
57.66% |
|
Gross profit/Loss |
2,039,397 |
(9,791,457) |
– |
|
Administrative and selling expenses |
(4,941,889) |
(4,577,285) |
7.97% |
|
Other operating expenses |
(20,686,660) |
(5,513,074) |
275.23% |
|
Impairment loss against financial assets |
(849,498) |
– |
– |
|
(26,478,047) |
(10,090,359) |
162.41% |
|
|
Other income |
14,409,908 |
14,190,110 |
1.55% |
|
Operating loss |
(10,028,742) |
(5,691,706) |
76.20% |
|
Finance cost |
(6,759,183) |
(5,065,105) |
33.45% |
|
Loss before tax |
(16,787,925) |
(10,756,811) |
56.07% |
|
Taxation |
(1,574,884) |
(4,047,715) |
-61.09% |
|
Loss after tax |
(18,362,809) |
(14,804,526) |
24.04% |
|
Basic/ diluted Loss per share |
(20.86) |
(16.81) |
24.09% |
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