SSGC losses fall 89% in first half of FY21

Decline comes due to surge in surcharges, cut in finance cost

KARACHI:

Sui Southern Gas Company’s (SSGC) consolidated net loss decreased by 89% to Rs1.42 billion in the first half of fiscal year 2020-21 mainly due to a significant surge in receipt of gas development surcharge and reduction in financing cost.

The gas transmission and distribution company had registered a loss of Rs13.44 billion in the corresponding period (Jul-Dec) of previous fiscal year 2019-20, according to the state-owned firm’s profit or loss account available at the Pakistan Stock Exchange (PSX) website on Friday.

Accordingly, the company’s loss per share reduced to Rs1.62 in the first half of its business year (Jul-Dec 2020) compared to Rs15.26 in the same period of previous year.

SSGC’s share price dropped 0.78% (or Rs0.08) to close at Rs10.12 with turnover of 81,000 shares at the PSX.

Receipts under the head of gas development surcharge surged 17.5 times to Rs19.24 billion in the period under review compared to Rs1.75 billion in the corresponding period of prior year.

“The revenue (gas development surcharge) recognised…is receivable from the government of Pakistan under provisions of the licence for transmission and distribution of natural gas to the holding company by Ogra (Oil and Gas Regulatory Authority),” said SSGC in its annual report for 2020.

However, the company’s sales decreased to Rs153.23 billion in the first half of FY21, compared to Rs161.36 billion in the same period of previous year.

Receipt of surcharges helped increase net sales to Rs148.55 billion in the half year, compared to Rs137.63 billion in the corresponding period of previous year.

Finance cost dropped notably to Rs2.47 billion in the half year under review compared to Rs3.97 billion in the same half of previous year.

Published in The Express Tribune, September 10^th, 2022.

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