SSGC’s losses expand by 16.30% in FY20

April 26, 2022 (MLN): Sui Southern Gas Company Limited (SSGC) has unveiled its long-awaited financial results for the year ended on June 30, 2020, as per which the company incurred hefty losses worth Rs21.4 billion (LPS: 24.28), compared to the losses of incurred Rs18.4bn (LPS: 20.88) in 2019.

During the year, SSGC’s sales increased from Rs187bn to Rs295.72bn, up by 17.52% compared to 251bn in the same period last year. The company paid Rs35.64bn as sales tax in FY20 against Rs323.8bn paid in the same account in the corresponding period last year.

The company also received a Rs37.6bn on gas development surcharge during the review period, dropped by 55.7% against Rs84.88bn paid in the same account in the same period last year. Accordingly, the company’s net sales went down by 2.33% YoY to Rs290bn from Rs297bn reported in FY19.

The cost of sales increased to Rs307bn in FY20 against Rs295bn in the same period in the previous year, showing an increase of around 4.12% YoY while, other operating expenses declined by 91.32% to Rs1.8bn in FY20.

The company has reversed the late payment surcharge (LPS) expense of Rs26.22bn on delayed / payables pertaining to gas supplied by government-controlled  E & P Companies i.e.  Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), and Government Holding (Private) Limited (GHPL) with effect from July 01, 2012, to June 30, 2016, and not recorded IPS expense for the year ended June 30, 2017, June 30, 2018, June 30, 2019, and June 30, 2020, amounting to Rs7.5bn, Rs7.4bn, Rs10.52bn, and Rs26.3bn, respectively

SSGC’s other operating income did not show any significant growth as it rose to Rs14.19bn against Rs14.24bn.

The further injury was made by tax expenses which amplified by 48.86% YoY to Rs2.34bn against Rs1.5bn paid in FY19.

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