SSGC reports Rs6.5bn profit, rebounding from Rs9.32bn loss in SPLY

By MG News | Category Equity | January 30, 2025 at 02:56 PM GMT+05:00

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January 30, 2025 (MLN): Sui Southern Gas Company Limited (PSX: SSGC) has reported a net profit of Rs 6.5 billion, marking a significant turnaround from the loss of Rs9.32bn recorded during the same period in 2022.

According to the company’s consolidated (un-audited) financial results for the first half of the fiscal year 2023, SSGC’s revenue from contracts with customers, primarily gas sales, increased by 43.03%, reaching Rs176.6bn in 1HFY23 compared to Rs123.47bn in 1HFY22.

However, tariff adjustments saw a decline of 33.84%, amounting to Rs56.4bn against Rs85.25bn in the previous year.

Consequently, net revenue grew by 11.63%, reaching Rs233bn compared to Rs208.72bn in 1HFY22.

Despite the rise in revenue, the cost of revenue also increased by 6.62% to Rs224.87bn from Rs210.92bn, resulting in a gross profit of Rs8.13bn.

This marks a significant improvement over the previous year's gross loss of Rs2.20bn.

Administrative and selling expenses saw an uptick of 27.03%, amounting to Rs3.46bn, while other operating expenses fell sharply by 89.58% to Rs651.75mn.

Furthermore, the allowance for expected credit loss declined by 38.36% to Rs707.17 million, contributing to a substantial 52.41% reduction in total other expenses.

A noteworthy boost in other income, which surged by 60.90% to Rs12.54bn, played a crucial role in SSGC’s improved financial position.

As a result, the company recorded an operating profit of Rs15.85bn in 1HFY23, a significant recovery from the operating loss of Rs4.53bn in the corresponding period of the previous year.

However, the company’s finance cost more than doubled, increasing by 119.28% to Rs6.60bn from Rs3.01bn, reflecting higher interest expenses.

Despite this, SSGC posted a profit before taxation of Rs9.25bn compared to a pre-tax loss of Rs7.54bn in 1HFY22.

After accounting for taxation of Rs2.75bn, net profit for the period stood at Rs6.50bn.

Earnings per share (EPS) also turned positive at Rs7.38, compared to a loss per share of Rs10.58 in the previous period.

Consolidated (un-audited) Financial Results for 1HFY23 (Rupees in '000)	31-Dec-23	31-Dec-22	%Change
Revenue from contract with customers - Gas sales	176,603,152	123,470,624	43.03%
Add: Tariff adjustments	56,401,610	85,252,837	-33.84%
Net revenue	233,004,762	208,723,461	11.63%
Cost of revenue	(224,874,668)	(210,921,120)	6.62%
Gross profit / (loss)	8,130,094	(2,197,659)
Administrative and selling expenses	(3,461,582)	(2,725,032)	27.03%
Other operating expenses	(651,753)	(6,257,212)	-89.58%
Allowance for expected credit loss	(707,168)	(1,147,268)	-38.36%
Total other expenses	(4,820,503)	(10,129,512)	-52.41%
Other income	12,544,143	7,796,128	60.90%
Operating profit / (loss)	15,853,734	(4,531,043)
Finance cost	(6,603,455)	(3,011,480)	119.28%
Profit / (loss) before taxation	9,250,279	(7,542,523)
Taxation	(2,745,959)	(1,775,106)	54.69%
Profit / (loss) for the period	6,504,320	(9,317,629)
Earnings / (loss) per share - basic and diluted	7.38	(10.58)

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