The financial year (FY) that concluded on June 30, 2022, had a combined loss after taxes of Rs. 11.41 billion for Sui Southern Gas Company Limited (SSGC).
The government-owned company’s financial reports show that losses followed a Rs. 2.26 billion profit in FY21.
Net revenue from client contracts in FY22 was Rs. 375.5 billion, a YoY increase of 27% from Rs. 296.1 billion in FY21.
While other operating expenditures sharply increased by 4,300% from Rs. 464 million to Rs. 20.4 billion in FY22, administrative and selling expenses grew by 14% from Rs. 4.6 billion in FY21 to Rs. 5.2 billion in FY22.
By the conclusion of FY22, the firm recorded a gross profit of Rs. 7.7 billion, up from a gross loss of Rs. 5.7 billion during the same time the previous year.
During that time, other revenue dropped from Rs. 19.2 billion to Rs. 17.6 billion, a YoY reduction of 8.5 percent. On the other hand, during FY22, the company’s financing costs rose by 12.3% YoY to Rs. 5.2 billion.
In comparison to FY21’s earnings per share of Rs. 2.57, SSGC recorded losses per share of Rs. 12.95 throughout the period.
Additionally, SSGC stated in a note that trade debts are comprised of receivables from K-Electric Limited (KE) and Pakistan Steel Mills Corporation (Private) Limited (PSML) of Rs. 29,652 million and Rs. 25,312 million, respectively, according to its unconsolidated financial statements. A sizable amount of these receivables are past-due amounts that have been deemed acceptable by management and are shown as current assets in the unconsolidated financial statements.
Additionally, management has chosen to recognise Late Payment Surcharge (LPS) on a receipt basis from the aforementioned firms as of July 1, 2012, while KE and PSML have challenged LPS on their respective amounts.
The business said that interest receivable from Sui Northern Gas Pipeline Limited (SNGPL) and the Water and Power Development Authority (WAPDA) was Rs. 10,957 million and Rs. 5,101 million, respectively, as additional interest accrued. Although they have been accounted for in accordance with the company’s policy of assessing LPS on past-due sums, the counterparty has not acknowledged them.
Owing to an ongoing dispute with WAPDA and SNGPL, as well as the substantial accumulation of their outstanding interest balances, SSGC was unable to estimate the likelihood of recovering the interest accrued amounts owed from SNGPL and WAPDA, including the duration of that recovery.
The Government of Pakistan (Finance Division) has affirmed that it will continue to provide the company with the funding it needs to continue operating as a going concern for the foreseeable future, according to SSGC. Therefore, the aforementioned assistance is necessary for the company’s activities to continue in the long run.
