SNGPL Posts Profit of Rs. 10.3 Billion in FY22

Sui Northern Gas Pipelines Limited (SNGPL) announced its financial results for the financial year ended June 30, 2022, on Monday.

The company reported a profit after tax (PAT) of Rs. 10.366 billion in FY22, down by 6 percent on a year-on-year (YoY) basis compared to a profit of Rs. 10.987 billion reported in FY21. The company’s earnings per share (EPS) came in at Rs. 16.34 in FY22, compared to EPS of Rs. 17.32 reported in FY21. Alongside the result, the company announced a final cash dividend of Rs. 4.00 per share in FY22.

During 4QFY22, the company registered a profit of Rs. 929 million, down by 55 percent compared to a profit of Rs. 2.048 billion reported in the same quarter of the previous year. The earnings per share during 4QFY22 came in at Rs. 1.46, compared to EPS of Rs. 3.23 reported in 4QFY21.

During FY22 sales depicted a growth of 71 percent over the previous year mainly due to a 105 percent jump in RLNG prices on a yearly basis, in lieu of rising international Brent Oil price. Meanwhile, RLNG imports declined by 7 percent in FY22 compared to the previous year.

The operating profit arrived at Rs. 72.8 billion in FY22 compared to Rs. 55.9 billion in the same period of the previous year given the lower charge of unaccounted-for gas losses (UFG) led by effective UFG control plan, and reduction in domestic volumes which offset the impact of a higher weighted average cost of gas.

The company’s finance costs registered a surge of 43 percent in FY22 over the previous year and stood at Rs. 57 billion primarily due to higher interest rates.

The company recorded a reversal of revenue relating to prior years amounting to Rs. 13.77 billion in 4QFY22. The company was involved in legal disputes with respect to take or pay agreements with the National Power Parks Management Company Limited (NPPMCL) and Quaid-e-Azam Thermal Power Limited (QATPL) in the High Court of London.

The company booked effective taxation at 33 percent during FY22, compared to 31 percent in FY21.