Sui Southern Returns to Profit After Billions in Losses in Previous Fiscal Year

Sui Southern Company Ltd (SSGC) has announced its much delayed financial statement for the year that ended on June 30, 2017, posting a consolidated profit of Rs. 1.47 billion, up from a massive loss of Rs. 5.86 billion during 2016.

The overall Net sales of the company rose to Rs 156.6 billion in FY201, up by 13.03% from Rs139 billion in FY 2016.

Earnings per share of the company were stated at Rs 1.67 compared to a loss per share of Rs. 6.65 last year.

Gas Development Surcharge saw a major decline to Rs. 4.7 billion, down from Rs. 44.78 billion.

Topline Securities believes that the SSGC had recorded a one-time gain of around Rs. 5-7 billion on account of revised Unaccounted for Gas (UFG) benchmark of 2.6 percent under local conditions over and above the technical benchmark of 4.5 percent. This enhanced the company’s UFG allowable benchmark to 7.1 percent for FY13-16.

SSGC was allowed UFG of 6.0-6.1% during FY13-16 as per the study conducted by KPMG on UFG. The sales tax saw a decline of 18% to Rs 25.66 billion, down from Rs 31.23 billion.

The gross loss of the company made a recovery from Rs. 24.82 billion in FY2016 to Rs. 850 million in FY2017.

SSGC’s script at the bourse was trading at Rs. 24.36, up by 5% or Rs. 1.16, with a turnover of 4.96 million shares on Tuesday.

SSGC Restores Gas Supply to JJVL

Sui Southern, in another notification, said that the supply of gas to Jamshoro Joint Venture limited (JJVl), which was discontinued earlier, has now been restored under an agreement between SSGCl and JJVl.

According to the notification, under the arrangement endorsed by the Honorable Supreme Court of Pakistan (SCP), M/s. A.F Furguson & Co. has been appointed as Receiver by the SCP to supervise the arrangement.

Moreover, 50% of the income derived from this arrangement will be claimed as Non-Operating Income as per the current Tariff Regime introduced by the Oil & Gas Regulatory Authority (OGRA).