SSGC reports Rs8bn profit for nine months, reversing Rs17bn loss

February 24, 2025 (MLN): Sui Southern Gas Company Limited (PSX: SSGC) has reported a net profit of Rs8 billion for the nine months ended March 31, 2024, marking a significant turnaround from the net loss of Rs17bn recorded in the same period last year.

Earnings per share (EPS) for the period improved significantly to Rs8.88, in contrast to the loss per share of Rs19.1 reported in 2023.

This improvement in financial performance is primarily attributed to a rise in revenue and a sharp decline in operating expenses.

SSGC's revenue from contracts with customers, mainly gas sales, surged by 63.8% to Rs291bn compared to Rs177.7bn in the corresponding period of 2023.

However, tariff adjustments declined by 63% tbo Rs56n, bringing the net revenue to Rs347bn, reflecting a moderate increase of 5.3% year-on-year.

Despite the increase in revenue, the cost of sales rose by 8.5% to Rs340bn, reducing the gross profit to Rs7.7bn, a 54.5% decline from Rs17bn in the previous year.

Administrative and selling expenses also climbed by 26% to Rs5.3bn, while other operating expenses saw a drastic 96.7% reduction to Rs1bn from Rs32bn last year.

The company's operating income turned positive at Rs62 million, compared to a loss of Rs21bn in the same period of 2023.

A major contributor to this improvement was a 74% rise in other income, which stood at Rs21.6bn.

SSGC posted an operating profit of Rs21.7bn against an operating loss of Rs8.4bn last year.

However, finance costs escalated by 76.7% to Rs10bn, reflecting the impact of higher borrowing costs.

After accounting for taxation of Rs4bn, the company’s profit before tax stood at Rs12bn, compared to a pre-tax loss of Rs14bn in the previous year.

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