November 05, 2024 (MLN): Sui Southern Gas Company Limited (PSX: SSGC) experienced a fall of 86% in its losses in FY23, which fell to Rs1.6 billion [LPS: Rs1.82], compared to a net loss of Rs11.44bn [LPS: Rs12.99] in FY22.
According to the profit and loss account, one of the key factors contributing to the reduced losses is a 175% increase in tariff adjustments due to rising gas prices.
This resulted in a 19.7% increase in the company's topline, rising to Rs449.5bn compared to Rs375.56bn in the SPLY.
Although the cost of sales increased by 15.1%, the significant growth in sales led to a remarkable 239.5% surge in gross profit, reaching Rs26.2bn in FY23.
The gross margins improved to 5.8% as compared to 2.1% in SPLY.
During the period under review, other income also expanded by 36.3% to stand at Rs23.56bn in FY23, another factor in contribution.
However, SSGC still reported a loss during the period, as its expenses and finance costs surged significantly.
On the expense side, the company's administration expenses and selling expenses rose 19.5% YoY to Rs6.07bn, and other operating expenses surged 70.9% YoY to Rs34.75bn.
The company’s finance cost increased by 66.1% and stood at Rs8.62bn as compared to Rs5.19bn in SPLY, mainly due to higher interest rates.
On the tax front, the company paid a lower tax worth Rs10.25m against the Rs3.71bn paid in the corresponding period of last year, depicting a decrease of 99.7%.
| Unconsolidated (un-audited) Financial Results for year ended 30 June, 2023 (Rupees in '000) | |||
|---|---|---|---|
| Sep 24 | Sep 23 | % Change | |
| Sales | 449,501,179 | 375,559,048 | 19.69% |
| Cost of sales | (423,300,717) | (367,840,505) | 15.08% |
| Gross Profit/ (loss) | 26,200,462 | 7,718,543 | 239.45% |
| Administration expenses and selling expenses | (6,074,498) | (5,084,613) | 19.47% |
| Allowance for expected credit loss | (1,907,945) | (2,121,563) | -10.07% |
| Other Income | 23,558,842 | 17,280,257 | 36.33% |
| Other Operating Expenses | (34,748,998) | (20,337,874) | 70.86% |
| Financial (charges) / income | (8,618,746) | (5,190,235) | 66.06% |
| Profit/ (loss) before taxation | (1,590,883) | (7,735,485) | -79.43% |
| Final tax / levies | (10,250) | (3,708,630) | -99.72% |
| Net profit/ (loss) for the period | (1,601,133) | (11,444,115) | -86.01% |
| Basic earnings/ (loss) per share | (1.82) | (12.99) | – |
Amount in thousand except for EPS
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Posted on: 2024-11-05T14:24:01+05:00
