KARACHI: Pakistan Credit Rating Agency (PACRA) has upgraded the credit ratings of Sui Southern Gas Company Limited (SSGCL) which portrays the enhancement in the company’s operational efficiency along with the turnaround in its financial performance which is expected to strengthen in the coming periods.
The PACRA has upgraded the Company’s Long-Term Rating to AA- and Short-Term Rating to A1 from A+ and A1 respectively.
SSGC is Pakistan’s leading integrated public-limited large-scale natural gas utility Company responsible for sole transmission and distribution of gas in Sindh and Balochistan. Government of Pakistan (GoP) directly and indirectly owns the majority of the shareholding of the Company.
Through rigorous measures and comprehensive strategy implementation by the management and Board of Directors, SSGC has recorded a consecutive decline in reported UFG losses for the past three years. Extensive initiatives undertaken by the Company’s Board of Directors and management has resulted in an unprecedented decline in UFG in Balochistan region during FY 2024, along with notable success in Karachi, with UFG percentage loss restricted to a single digit.
Subsequently, SSGC’s net loss has decreased from PKR 11.44 billion during FY 2021-22 to Rs 1.60 billion during FY 2022-23. Although still above its regulatory benchmark, SSGC remains optimistic about its future trajectory of UFG losses. Furthermore, the Company has initiated a massive rehabilitation program to address system leakages and strengthen network integrity.
Copyright Business Recorder, 2024
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