Complete turnaround: SSGC reports Rs4.5bn profit in July-Sept quarter

After much delay, the Sui Southern Gas Company (SSGC) made public its accounts for the quarter ended September 30, 2023, announcing a massive consolidated profit of Rs4.5 billion during the period.

The profit is a complete turnaround from a loss of Rs5.6 billion incurred by SSGC in the same period of the preceding year, according to a notice sent to the Pakistan Stock Exchange (PSX) on Thursday.

The company’s earnings per share (EPS) was recorded at Rs5.16 in the three-month period compared to a loss per share (LPS) of Rs6.32 in the same period of the previous fiscal year.

The profit was driven by a decline in the company’s cost of sales and other expenses.

SSGC incurs massive loss of Rs9.3bn in 6MFY23

SSGC’s net sales (after tariff adjustments) rose to Rs117.85 billion in July-September 2023 compared to Rs116.24 billion in the same period the previous year, an increase of over 1%.

On the other hand, the company’s cost of sales decreased to Rs112.1 billion, a decrease of over 1%.

Resultantly, the company, which is involved in the transmission and distribution of natural gas in Sindh and Balochistan, posted a gross profit of Rs5.8 billion, an increase of over 114% as compared to a gross profit of Rs2.7 billion in SPLY.

On a consolidated basis, the company saw its other expenses stand at Rs1.5 billion compared to Rs7.5 billion, a decline of over 80%.

On the other hand, SSGC’s other income rose to Rs6.1 billion, compared to Rs3.7 billion in SPLY, up over 67%.

Consequently, SSGC’s profit before finance cost and taxation clocked in at Rs8.3 billion in 3QCY23, as compared to a loss of Rs2.9 billion in SPLY.

The cost of finance increased to Rs3.3 billion in the quarter ended September 30, 2023, compared to Rs1.7 billion in SPLY, a jump of over 97%.

During the period SSGC paid only Rs464.3 million in taxes.

The company’s share price hit the upper limit of Rs35.89 on Thursday after increasing 10% or Rs3.26 during the session with over 85 million shares changing hands.