Sui Southern Gas Company Limited Reports Rs. 8.29 Billion Profit

Sui Southern Gas Company Limited has announced a remarkable financial recovery for the fiscal year ended June 30, 2024, reporting a consolidated profit of Rs. 8.29 billion, a stark contrast to the Rs. 836 million loss in FY 2023, reflecting a significant turnaround in its operations. The company’s earnings per share surged to Rs. 9.41, compared to a loss per share of Rs. 0.95 the previous year, signaling improved performance amidst ongoing challenges.

Net revenue rose to Rs. 465.87 billion, up from Rs. 451.48 billion, though gross profit dipped to Rs. 10.38 billion from Rs. 28.18 billion, per the text. A steep increase in other incomes and a drop in other expenses drove an operating profit of Rs. 25.15 billion, up from Rs. 8.20 billion, despite finance costs climbing to Rs. 13.40 billion (from Rs. 8.64 billion). However, auditors raised concerns over Rs. 47.48 billion in trade debts from K-Electric and Pakistan Steel Mills, citing overdue receivables and unresolved Late Payment Surcharge disputes, alongside Rs. 276.08 billion in unrecognised markup and pending litigation risks. Web context from Profit by Pakistan Today highlights similar receivable issues across utilities, while posts on X note investor optimism post-results.

Sui Southern Gas Company Limited attributed past losses to delayed price determinations by the Oil and Gas Regulatory Authority and inadequate subsidies, increasing reliance on short-term borrowings that inflate interest burdens. The company insists its losses are regulatory in nature, expecting future tariff adjustments and government support to sustain operations. No dividends were recommended, with the Annual General Meeting set for June 16, 2025, in Karachi. Despite a 7.65% stock gain, financial health remains strained by receivables, litigation, and high leverage.

Critically, the narrative of “improved profitability” may mask persistent vulnerabilities—web sources point to systemic regulatory delays, and X sentiment questions long-term stability, suggesting ongoing risks. The company’s role as a leading gas utility in Sindh and Balochistan remains pivotal to Pakistan’s energy sector.