Sui Southern Gas Company’s (SSGC) net consolidated loss plunged 90% to Rs1.97 billion in nine months ended March 31, 2021 on the back of higher net sales and other income and a drop in finance cost.
The gas marketing company had booked a net consolidated loss of Rs19.03 billion in the same period of previous year, according to its profit or loss account dispatched to the Pakistan Stock Exchange (PSX) on Thursday.
The company’s loss per share fell to Rs2.55 in Jul-Mar 2020-21 compared to Rs21.61 in the corresponding period of last year.
SSGC’s share price edged down Rs0.01 to close at Rs9.79 with trading in 301,500 shares at the PSX.
The company recorded operating profit of Rs3.23 billion in the nine-month period under review compared to a loss of Rs11.95 billion booked in the same period of previous year.
Net sales rose almost 3% to Rs217.32 billion in Jul-Mar FY21 compared to Rs211.09 billion in the same period of last year.
Net sales went up after the gas development surcharge rose by 59% to Rs24.85 billion in the period under review. Otherwise, gross sales had been lower at Rs228.97 billion in Jul-Mar FY21 compared to Rs231.95 billion in the corresponding period of previous year.
The gas utility’s other income increased by 22% to Rs15.18 billion compared to Rs12.45 billion in the previous year. Finance cost contracted by 38% to Rs3.32 billion compared to Rs5.36 billion.
The company paid taxes of Rs1.88 billion, which were slightly higher than taxes of Rs1.72 billion in the previous year.
Earlier, the company announced that it would establish a subsidiary with the objective of diversifying its business. The new company will produce gas from coal and electricity from all available resources including the renewable ones to increase sales and profit.
The firm will keep its focus on producing electricity from renewable sources including solar and wind, as their cost of production is significantly lower compared to the thermal plants.
It has also planned to produce hydrogen gas and recycle waste water in the country.
Published in The Express Tribune, October 14th, 2022.
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