Sui Northern Gas Pipelines Limited (SNGPL) has finally announced its financial results for the year, ending on June 30, 2019.
The company’s profits declined by 36.42% to Rs. 7.07 billion for 2019 as compared with a profit of Rs. 11.12 billion in 2018.
It announced a final cash dividend for the year at Rs. 2/share which was equivalent to 20%. This is in addition to interim cash dividend already paid at Rs. 1.50/share which is equivalent to 15% for the first quarter ending on September 30, 2018.
The gas sales of the company improved by 53% to Rs. 754.538 billion in FY19 as compared with Rs. 503.782 billion in FY18.
This was due to the volumetric growth in RLNG (up 26% year on year) as well as a hike in natural gas tariff during the said year (after a hiatus of five years imposed by the prior government), said Arif Habib Ltd in a report.
The cost of sales of the company increased by 51% to Rs. 718.74 billion as compared to Rs. 476.78 billion. SNGP reported a gross profit of Rs. 35.79 billion as compared to Rs. 26.99 billion for the year. It also reported an expected credit loss of Rs. 1.50 billion in FY19.
The finance costs of the company inflated to a massive Rs. 25. 77 billion in FY19, up 139%, as compared with Rs. 10.80 billion in FY18 due to the recognition of late payment surcharge (LPS), expected at Rs. 18 billion in FY19.
Earnings per share of the company were reported at Rs. 11.16 as compared with Rs. 17.54.