SSGC reverses loss, earns Rs4.16bn profit in Q1

December 05, 2024 (MLN): Sui Southern Gas Company Limited (PSX: SSGC) reported a significant turnaround, posting a bumper profit of Rs4.16 billion [EPS: Rs4.72] compared to a loss of Rs5.59bn [LPS: Rs-6.35] in the same period last year (SPLY).

A slight improvement in income, reduced costs of sales and operating expenses, and a notable drop in taxation contributed to this positive financial outcome.

Going by the results, the company's top line improved 1.4% to Rs117.85bn as compared to Rs116.24bn in SPLY.

This was primarily due to higher tarruff adjustments, which amounted to Rs46.93bn, up by 3.07% compared to last year.

The cost of sales fell by 1.3% which coupled with improved topline, improved the gross profit significantly by 114.1% to Rs5.76bn in Q1 FY24.

The gross margins improved to 4.9% as compared to 2.3% in SPLY.

During the period under review, other income went up by 52.4% to stand at Rs5.41bn in Q1 FY24, another contributing factor.

On the expense side, the company's administration and selling expenses rose 20.9% YoY to Rs1.67bn.

Meamwhile, allowance for expected credit loss fell 7.2% YoY to Rs401.47m, and other operating expenses declined 80.5% YoY to Rs1.46bn.

The company’s finance cost increased by 96.7% and stood at Rs3.24bn as compared to Rs1.65bn in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs238.83m against the Rs903.82m paid in the corresponding period of last year, depicting a decrease of 73.6%.

Amount in thousand except for EPS

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