Sui Northern Gas Pipelines Limited (SNGP) announced the financial result for 9MFY24 today, positing a profit after tax (PAT) of PKR 10,724mn (EPS: PKR 16.91), up  28% YoY. On a quarterly basis (3QFY24), the earnings arrived at PKR 3,700mn (PKR 5.83), surging by 62% YoY.

Result Highlights       

• During 9MFY24, the net sales climbed up 18% YoY, owing to a revision in consumer gas tariff by OGRA coupled with 4% YoY higher RLNG imports. However, RLNG prices witnessed a 15% YoY decline instead of a decline in international Brent oil prices (down by 12% YoY). In addition to this, the gas production decreased by 3% YoY. In 3QFY24, the company’s topline augmented by 16% YoY| 6% QoQ due to a revision in consumer gas tariff by OGRA tagged with 15% YoY growth in RLNG imports.
• The operating profit reached PKR 121bn in 9MFY24, a surge of 110% YoY, given the higher weighted average cost of capital and the reduction in the charge of unaccounted-for gas losses (UFG) due to effective UFG control.
• Finance costs increased by 97% YoY in 9MFY24 to PKR 131bn owed to higher interest rates.
• The company booked effective taxation at 44% during 9MFY24 vis-à-vis 39% in 9MFY23.

Courtesy – AHL Research