SSGC returns to profitability in FY24

May 13, 2025 (MLN): Sui Southern Gas Company Limited (PSX: SSGC) has reported a net profit of Rs8.29 billion for the financial year ended June 30, 2024, marking a strong turnaround from a net loss of Rs836 million recorded in the previous year.

Earnings per share (EPS) improved significantly to Rs9.41, compared to a loss per share of Rs0.95 reported for FY23.

Revenue from contracts with customers primarily gas sales rose by 70.02% to Rs412.66bn in FY24, up from Rs242.72bn in FY23.

However, tariff adjustments dropped sharply by 74.51% to Rs53.2bn, bringing the total net revenue to Rs465.87bn a modest year-on-year growth of 3.19%.

Despite this increase in net revenue, the cost of gas sales also climbed by 7.6% to Rs455.49bn, which led to a 63.16% decline in gross profit to Rs10.38bn from Rs28.18bn the previous year.

Administrative and selling expenses increased by 17.73% to Rs7.4bn, while other operating expenses declined by 34.83% to Rs22.85bn. The allowance for expected credit loss remained nearly flat, rising just 2.22% to Rs1.95bn.

Total operating expenses fell by 25.55% to Rs32.2bn, leading to an operating loss of Rs21.83bn up 44.69% from the Rs15.08bn loss recorded last year.

The key boost came from a 101.75% increase in other income, which stood at Rs46.97bn for FY24. As a result, the company posted an operating profit of Rs25.15bn, a jump of 206.73% compared to Rs8.2bn in FY23.

However, finance costs increased significantly by 55.05% to Rs13.4bn, reflecting higher borrowing costs.

Profit before levy and taxation stood at Rs11.75bn, compared to a loss of Rs441m in FY23.

After accounting for minimum and final tax levies totaling Rs2.37bn and Rs0.78m respectively, the profit before tax came in at Rs9.38 billion, reversing a pre-tax loss of Rs2.62 billion in the previous year.

Following taxation of Rs1.09bn, SSGC reported a net profit of Rs8.29bn for FY24 demonstrating a remarkable recovery in its financial performance.

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