After much delay, Sui Southern Gas Company (SSGC) made public its accounts for the first half of fiscal year 2022-23 (FY23), announcing a massive consolidated loss of Rs9.3 billion during the period ended December 31, 2022.
In the same period of the preceding year, SSGC, which is involved in the transmission and distribution of natural gas in Sindh and Balochistan, saw a loss after tax (PAT) of Rs1.88 billion, according to a notice sent to the Pakistan Stock Exchange (PSX) on Monday.
Resultantly, the company’s loss per share (LPS) was recorded at Rs10.58 in 6MFY23 as compared to a LPS of Rs2.13 in the same period of the previous fiscal year.
SSGC’s net sales (after tariff adjustments) rose to Rs208.72 billion compared to Rs189.15 billion in the same period previous year, an increase of over 10%.
Sui Southern Gas Company bleeds Rs11.41bn in losses in FY22
However, despite this, the company posted a gross loss Rs2.2 billion in 6MFY23, in contrast to a gross profit of Rs2.06 billion in SPLY.
The loss is attributed to a massive increase in cost, which rose to Rs210.92 billion in 6MFY23.
On a consolidated basis, the company saw a significant increase in its expenses, which stood at Rs10.13 billion in 6MFY23, compared to Rs8.36 billion, a jump of over 21%.
On the other hand, SSGC’s other income declined to Rs7.8 billion in 6MFY23, as compared to Rs8.13 billion in SPLY, down nearly 5%.
The cost of finance increased to Rs3.01 billion in the half-year ended December 31, 2022, as compared to Rs2.22 billion in SPLY, a jump of nearly 36%.
SSGC said that under the unconsolidated condensed interim financial statements, trade debts include receivables of Rs29,971 million and Rs25,170 million which includes an overdue balance of Rs29,652 million and Rs25,100 million from K-Electric (KE) and Pakistan Steel Mills Corporation (Private) Limited (PSML), respectively, which has been considered good by management and classified as current assets.
“Further, KE and PSML have disputed Late Payment Surcharge (LPS) on their respective balances due to which management has decided to recognize LPS on a receipt basis from the aforesaid entities effective from July 01, 2012,” it said.
SSGC further said that due to the adverse operational and financial conditions of PSML, disputes by KE and PSML with the company on LPS, and large accumulation of their respective overdue amounts, SSGC was unable to determine the extent to which the total amounts due from KE and PSML were likely to be recovered and the time frame over which such recovery will be made.
The company also drew attention that given its financial position, the Government of Pakistan (Finance Division) has confirmed to extend necessary financial support to the company for the foreseeable future to maintain its going concern status. “Hence, the sustainability of the future operations of the company is dependent on the said support,” SSGC added.
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