SNGPL’s profit rises 36% to Rs1.9 billion

Company records lower UFG losses, strong capital expenditure


Our Correspondent October 28, 2017
PHOTO: FILE

KARACHI: Sui Northern Gas Pipelines Limited (SNGPL) posted net earnings of Rs1.9 billion for the quarter ended September 2017, up 36% compared with Rs1.4 billion in the same period of last year, according to a company notice sent to the Pakistan Stock Exchange (PSX).

The result was above market expectations. Earnings per share (EPS) stood at Rs3.03 in Jul-Sep 2017 compared with Rs2.21 in the corresponding quarter of previous year.

The company announced an interim dividend of Rs1.50 per share for the quarter.

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On the same day, SNGPL also announced its results for fiscal year ended June 30, 2017, in which it posted a net profit of Rs8.62 billion compared with Rs124 million in the previous year. EPS was recorded at Rs13.58 in FY17 compared with Rs0.20 in the preceding year.

SNGPL announced a final cash dividend of Rs6 for fiscal year 2017.

Its share price closed at Rs124.49, up 4.9% on a day when the benchmark KSE-100 index ended at 41,105, down 304 points or 0.73%.

Brokerage houses attributed the strong earnings growth to higher capital expenditure on account of LNG-II pipeline and lower unaccounted-for-gas losses (UFG) in FY17.

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SNGPL carried out capital expenditure of around Rs20 billion in the first nine months of FY17 and it had planned a total capital expenditure of around Rs60 billion on the LNG-II pipeline.

Similarly, the UFG level stood at 8% in FY17 compared with 10% in fiscal year 2016. This drove operating profits to Rs17.9 billion from Rs4.2 billion.

The company operates on the return-on-assets formula, hence, its profitability is directly proportional to its asset expansion and status of UFG losses.

Published in The Express Tribune, October 28th, 2017.

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