The Sui Southern Gas Company (SSGC) has announced an annual after-tax profit of Rs4.4 billion. This represents an increase of 17 times or 1,709 per cent from the after-tax profit of Rs417 million for the fiscal year 2009.
The company also announced a 15 per cent dividend for the year ended June 30. Furthermore, the directors recommended a bonus share issue of one share for every four shares held. Earnings per share were Rs6.55 for the fiscal year 2010 against Rs0.38 for the previous fiscal year.
Analysts termed the profits “expected”, explaining that the relaxation in the allowance for unaccounted gas, the increase in royalties and the inclusion of late payment surcharges in other income as opposed to the operating income led to the sharp increase in profits. They also expect the SSGC stock to continue its upward trend.
SSGC shares have risen steadily over the past few days in response to the increase in the benchmark unaccounted-for-gas allowance rate to seven per cent.
The rate was increased by the Oil and Gas Regulatory Authority (Ogra) after receiving a request from SSGC and its northern counterpart, SNGPL.
SSGC shares closed at Rs30.28 after an increase of Rs0.65. The stock has also gained 15.4 per cent this week after starting out at Rs26.23.
Published in The Express Tribune, October 1st, 2010.
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