Hifsa Raja

Sui Northern Gas Pipelines Limited (SNGPL) revenue climbed 27% to Rs183 billion in the third quarter (January-March) of the fiscal year 2021-22 compared to Rs145 billion recorded in the same period of the previous year.The company’s gross profit stood at Rs13.61 billion in 3QFY22 compared to Rs10.04 billion in 3QFY21, posting a 36% increase year-on-year. The operating profit increased 26% to Rs15.77 billion in 3QFY22 from Rs12.50 billion in 3QFY21.

However, the profit-before-taxation decreased 13% to Rs3.71 billion in 3QFY22 from Rs4.25 billion in 3QFY21. Similarly, the after-tax profit fell 16% to Rs2.55 billion in 3QFY22 from Rs3 billion in 3QFY21. Earnings per share also fell to Rs4.02 in 3QFY22 from Rs4.76 in 3QFY21, reports WealthPK.

Half-yearly performance

During the half-year (July-December) period of FY22, the company generated a whopping Rs602 billion revenue compared to Rs351 billion over the same period of FY21. The gross profit in 1HFY22 stood at Rs33.3 billion compared to Rs26.3 billion in 1HFY21. The operating profit for 1HFY22 stood at Rs25.1 billion compared to Rs19.2 billion in 1HFY21. The net income in 1HFY22 was Rs6.8 billion compared to Rs5.9 billion in 1HFY21.

The earnings per share witnessed a mixed trend in recent years. In 2018, the earnings per share stood at Rs17.54, but decreased in 2019 to Rs11.16. The EPS further dropped to Rs9.46 in 2020, but rebounded in 2021 to Rs17.32.

Industry comparison

Sui Northern Gas Pipelines Limited’s competitors include Dawood Lawrencepur Limited, Saif Power Limited, Engro Powergen Qadirpur Limited, and Kot Addu Power Company Limited.

Profitability was high in 2020 as compared to 2019, as the gross profit and operating profit remained low in 2019. In 2021, the profitability increased, but was still less than in 2020.

Company profile

Sui Northern Gas Pipelines is a public limited company incorporated in Pakistan under the Companies Act, 1913 (now Companies Act, 2017). The principal activity of the company is the purchase, transmission, distribution and supply of natural gas.

Credit: Independent News Pakistan-WealthPk