SSGC losses shrink 86% in FY23 amid tariff adjustments

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%.

Amount in thousand except for EPS

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