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Sui Northern gas Pipelines Limited-Beats the Odds: Strong Financial Results Amidst Storm

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SNGPL has demonstrated robust financial performance for the year ended June 30, 2023. Key financial highlights include:

  • Revenue: The company recorded a substantial increase in revenue from gas sales, reaching PKR 1,081,530,239 in 2023 compared to PKR 1,076,740,109 in 2022. Additional revenue from tariff adjustments contributed to the overall growth.
  • Gross Profit: A significant increase in gross profit was observed, rising from PKR 85,521,705 in 2022 to PKR 127,458,478 in 2023.
  • Operating Profit: Operating profit surged from PKR 72,800,002 in 2022 to PKR 136,293,311 in 2023, reflecting improved operational efficiency and cost management.
  • Net Profit: SNGPL recorded a net profit of PKR 10,563,704 for the year, compared to PKR 10,366,231 in 2022, showcasing consistent profitability.
  • Earnings Per Share (EPS): Basic and diluted EPS increased from PKR 16.34 in 2022 to PKR 16.66 in 2023, indicating enhanced earnings for shareholders.

Dividend Announcement and Shareholder Information

In recognition of its strong financial performance, SNGPL’s Board of Directors declared a final cash dividend of Rs. 4.50 per share (45%) for the financial year ended June 30, 2023.

To facilitate the dividend payment process, SNGPL will temporarily close its share transfer books from Wednesday, August 14, 2024, to Wednesday, August 21, 2024. Shareholders whose names appear on the register of members as of Tuesday, August 13, 2024, will be eligible for the dividend.

SNGPL’s AGM is scheduled for Wednesday, August 21, 2024, at 10:30 AM in Lahore. The company will release its annual report through the Pakistan Central Depository Company (PUCARS) at least 21 days prior to the AGM.

Challenges and Outlook

SNGPL has disclosed a material issue concerning the misappropriation of certain store items at its Central Base Manga store. Criminal proceedings have been initiated, and a forensic audit is underway. The company has made a provision of Rs. 418.356 million in its financial statements to account for this matter.

While SNGPL has achieved commendable financial results, it operates in a challenging environment marked by circular debt and occasional gas shortages. The company’s ability to navigate these challenges and sustain its growth trajectory will be crucial for its future success. The misappropriation incident also poses a significant challenge that requires careful management.

Overall, SNGPL has demonstrated strong financial performance and rewarded shareholders with a cash dividend. However, the company must address the material issue and navigate industry challenges to maintain its growth momentum

Company Profile

SUI Northern Gas Pipelines Limited (SNGPL) is a prominent gas distribution company in Pakistan. It operates across Punjab, Khyber Pakhtunkhwa, and Azad Jammu and Kashmir, serving millions of consumers. The company’s core business revolves around the distribution of natural gas, management of gas infrastructure, and providing exceptional customer service

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