Islamabad, Apr 28, 2025: Sui Northern Gas Pipeline Limited (SNGPL) has unveiled its financial outcomes for the fiscal year 2023-24, showcasing a significant profit after tax of Rs. 18.97 billion, which marks an impressive 80% increase from Rs. 10.56 billion recorded during the same period last year.
The company also reported an earnings per share (EPS) of Rs. 13.01, demonstrating a remarkable rise of 280% year-on-year (YoY) and 123% quarter-on-quarter (QoQ).
As per Topline Securities, the robust growth in earnings can be attributed to the higher rate of return granted to SNGPL.
The return for FY24 was set at 26.22%, a substantial increase from the previous return of 20.64%.
This rate adjustment has significantly impacted the financial performance in the fourth quarter, following a 20.64% return formula for the first three quarters of FY24.
The Oil and Gas Regulatory Authority (OGRA) approved this increased return for SNGPL in FY24, addressing the previous year’s disparity.
In FY23, Sui Southern Gas Company (SSGC) was awarded a higher return of 23.45%, while SNGPL received only 16.60%.
To balance this difference, SNGPL was permitted a higher return in FY24.
The company also took legal action in the form of a high court petition regarding the unequal returns in FY23.
Moreover, SNGPL reported an indigenous distribution UFG (Unaccounted for Gas) of 7.74%, exceeding the acceptable benchmark of 7.21%.
This resulted in a disallowance of 53 basis points, equivalent to Rs. 2 billion.
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The company has also revised its financial statements, adjusting its accounting entries.
These revisions have led to a reduction in gross profit and finance costs for the quarter-on-quarter comparison.
In terms of taxation, SNGPL’s effective tax rate for FY24 stands at 36%, compared to 33% in FY23.
Along with the financial results, the company declared a dividend of Rs. 7.5 per share for FY24, an increase from the Rs. 4.5 per share dividend in FY23.
Currently, SNGPL is trading at a price-to-earnings (PE) ratio of 4.6x for FY25 and 5.2x for FY26, reflecting favorable market conditions.
