FY2021-22: Sui Northern Gas earns Rs10.9 billion profit after tax

Lahore: The Sui Northern Gas Pipelines Limited (SNGPL) has earned Rs10.99 billion profit after tax in the fiscal year 2021-22.

According to a press release, the company earned profit before tax of Rs15.84 billion and EPS of Rs17.32 as compared to profit before tax of Rs8.42 billion, profit after tax of Rs5.99 billion and EPS of Rs9.46 during the corresponding period of last year.

Based on the declared profit, the company has proposed a final cash dividend of 50% (in addition of interim cash dividend at the rate of Rs2 per share of Rs10 each i.e. 20% already paid) for FY 2020-21.

Some of the significant factors which helped the company achieve the results are set out below:

a) Decrease in UFG percentage from 12.32% to 8.60% reducing UFG disallowance from Rs. 11.7 billion in FY 2019-20 to Rs 3.4 billion during the year ended June 30, 2021. The substantial reduction in UFG was made possible due to concerted efforts of the Board and the Management in setting an ambitious target for UFG reduction and achieving tangible results in respect of them. 

b) Re-negotiation of finance costs on the borrowing facilities coupled with reduction in interest rates by SBP helped Company reduce the finance cost by over Rs 8 billion.

Moreover, SNGPL has also declared its quarterly results for the first quarter ended                  September 30, 2021. During the period under review, the Company has earned profit before tax amounting to Rs 4.27 billion, profit after tax of Rs. 3.03 billion and EPS of Rs. 4.78 against a profit before tax amounting to Rs 4.47 billion, profit after tax of Rs. 3.18 billion and EPS of Rs. 5.01 for the corresponding period. 

Despite all the economic challenges and financial constraints, the Company has not only maintained its pace but is accelerating its momentum and is confident of promising results in future.

It is considered that the results have been achieved by timely completion of targets of infrastructure development and continuous focus of the Board of Directors on various initiatives taken by the Company. Management and staff of the Company are confident that performance of the Company will further enhance in the years ahead.