SSGC: Running at a loss

June 22, 2020 (MLN): Sui Southern Gas Company Limited (SSGC) has unveiled its long-awaited financial results for the year ended on June 30th, 2018 as per which the company incurred hefty losses worth Rs 14.8 billion, compared to the profits of Rs 1.47 billion in 2017.

This reflected in company’s earnings per share which was Rs 1.67 in FY17 turned into loss per share of Rs 16.81.

According to the financial results, during the year, SSGC’s sales declined to 1.61% from Rs 187 billion to Rs 184 billion. The company paid Rs 25.25 billion as sales tax against Rs 25.6 billion paid in the same account in the corresponding period last year.

The company also received a relief of Rs 22.64 billion on gas development surcharge during the review period against Rs 4.69 billion paid in the same account in the same period last year. Accordingly, company’s net sales went up by 13.23% YoY to Rs 177.4 billion from Rs 156.67 billion reported in FY17.

The cost of sales increased to Rs 187 billion against Rs 157 billion in the same period in previous year, showing an increase of around 19% YoY. While, other operating expenses grew by 66.9% to Rs 5.5 billion which turned company’s operating profits into losses worth Rs 5.69 billion.

SSGC’s other operating income did not show any significant growth as it rose to Rs 14.19 billion against Rs 13.74 billion.

On the other hand, the finance cost increased nearly threefold to Rs 5 billion against Rs 1.69 billion which put a further dent on company’s net income. As a result, the company witnessed loss before taxation of Rs 0.75 billion against profits before taxation of Rs 3.48 billion.

Further injury made by tax expenses which amplified twofold to Rs 4 billion against Rs 2 billion paid in the corresponding period last year.

Consolidated Profit and Loss Statement for the Year ended June 30, 2018 ('000 Rupees)

 

June-2018

June-2017

% Change

Sales

 184,014,613

 187,028,899

-1.61%

Sales tax

 (25,251,284)

 (25,665,983)

-1.62%

 

 158,763,329

 161,362,916

-1.61%

Gas development surcharge

 22,645,175

 (4,689,641)

 

RLNG differential margin

 (4,004,081)

 –  

 

Net sales

 177,404,423

 156,673,275

13.23%

Cost of sales

 (187,195,880)

 (157,524,022)

18.84%

Gross Loss

 (9,791,457)

 (850,747)

1050.92%

Administrative and selling expenses

 (4,577,285)

 (4,409,981)

3.79%

Other operating expenses

 (5,513,074)

 (3,303,250)

66.90%

 

 (10,090,359)

 (7,713,231)

30.82%

Other income

 14,190,110

 13,744,600

3.24%

Operating loss

 (5,691,706)

 5,180,622

 

Other non-operating income

 –  

 –  

 

Finance cost

 (5,065,105)

 (1,694,734)

198.87%

Profit/(loss) before tax

 (10,756,811)

 3,485,888

 

Taxation

 (4,047,715)

 (2,011,093)

101.27%

Profit/(loss) after tax

 (14,804,526)

 1,474,795

 

Basic/ diluted profit/ (loss) per share (Rs.)

 (16.81)

 1.67

 

 

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Posted on: 2020-06-22T13:55:00+05:00

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