Sui Northern Posts Profit of Rs. 10.5 Billion in FY23

Sui Northern Gas Pipelines Limited (PSX: SNGP) has announced a profit after tax (PAT) of Rs. 10.564 billion for the fiscal year ended June 30, 2023 (FY23), up 2 percent over FY22. The company also announced its financial result for the first quarter of FY24. The earnings per share (EPS) for FY23 came at Rs. 16.66. On a quarterly basis (4QFY23), the earnings arrived at Rs. 2.165 billion (EPS of Rs. 3.41), swelling up by 2x over the previous year. Additionally, the company announced a final cash dividend of Rs. 4.50 per share (Rs. 4.00 share in FY22). In 1QFY24 the bottom-line settled at Rs. 3.706 billion (EPS of Rs. 5.84), up by 44 percent year-over-year (YoY). In FY23, net sales rose 13 percent YoY, owing to revision in consumer gas tariff by OGRA. However, RLNG prices witnessed a 5 percent YoY decline in due to decline in international Brent oil price. In addition to this, RLNG imports declined by 16 percent YoY in FY23 while gas production was down 4 percent YoY. Whereas, during 1QFY24, the company’s topline increased by 13 percent YoY amid 12 percent YoY higher RLNG imports coupled with hike in consumer gas rates. Whereas, local gas production fell by 2 percent YoY. The operating profit arrived at Rs. 136.3 billion in FY23, depicting a surge of 87 percent YoY given the reduction charge of unaccounted-for gas losses (UFG) due to effective UFG control in place, coupled with a fall in domestic volumes which absorbed the impact of a higher weighted average cost of gas. On the other hand, operating profit during 1QFY24 depicted a jump of 95 percent YoY on account of increase in Return on Assets (ROA). Finance costs rose by 2x YoY in FY23 to Rs. 120.5 billion due to higher interest rates. Similarly, finance costs in 1QFY24 were up by 2x YoY. The company booked effective taxation remained unchanged at 33 percent during FY23. Whereas, SNGP’s effective taxation arrived at 39 percent in 1QFY24 compared to 40 percent in 1QFY23. Data taken from Result Review by Arif Habib Limited.