Sui Southern Gas Company (SSGC) has posted a massive profit of Rs8.3 billion for the fiscal year ending on June 30, 2024. This marks a dramatic turnaround from the Rs836 million loss it incurred in the same period last year. This financial recovery is a sign of improved operations after a period of difficulty.
The company’s earnings per share (EPS) were recorded at Rs9.41, compared to a loss per share of Re0.95 in the previous fiscal year. The key driver for this remarkable profit increase was the substantial rise in other income, which more than doubled to Rs46.97 billion from Rs23.28 billion in the prior year.
SSGC’s net sales for the period reached Rs465.8 billion, marking an increase of over 3% compared to the previous year. However, the cost of sales surged by 8%, reaching Rs455.5 billion, leading to a decline in gross profit to Rs10.4 billion, which is a 63% drop from Rs28.2 billion in the previous year. This highlights the pressure from rising operational costs, despite increased sales.
On the positive side, the company managed to reduce other expenses by 26%, bringing them down to Rs32.2 billion. SSGC’s profit before finance cost and taxation surged by 206% to Rs25.1 billion, up from Rs8.2 billion in the previous year. This demonstrates significant efficiency improvements in managing costs and generating revenue despite the rising expenses.
However, the company faced a 55% increase in finance costs, which rose to Rs13.4 billion from Rs8.6 billion. This increase was mainly due to higher interest rates and the company’s borrowing requirements. Despite the increase in costs, SSGC was able to pay only Rs2.4 billion in taxes, which helped maintain strong profitability. The company now heads into the new fiscal year with more financial stability and a stronger foundation to face challenges in the Sindh and Balochistan regions.