Sui Southern Gas Company (SSGC) incurred huge losses of Rs 11.41 billion in the financial year 2021-2022.
SGGC, which deals with natural gas transmission and distribution in Sindh and Balochistan, earned a profit after tax (PAT) of Rs 2.26 billion during the same period last fiscal (FY21), according to a notification sent to Pakistan. Stock Exchange (PSX) on Monday.
As a result, loss per share (LPS) was recorded at Rs 12.95 in FY22 as compared to earnings per share (EPS) at Rs 2.57 in the same period last fiscal.
SSGC’s net income increased by nearly 27% to Rs 375.56 billion compared to Rs 296.13 trillion in the fiscal year.
The company’s gross profit stood at Rs 7.72 billion in FY22 compared to a gross loss of Rs 5.75 billion in FY21.
On a consolidated basis, the company saw a huge increase in its expenses, which stood at Rs 27.73 billion in FY22 compared to Rs 7.31 billion in FY21, an increase of over 279%.
The rise in the company’s expenses was attributed to the exponential increase in ‘other operating expenses’ which reached Rs 20.42 billion in FY22 as compared to Rs 464 million in FY21.
On the other hand, other income of SSGC was recorded at Rs 17.63 billion in FY22 as against Rs 19.26 billion in FY21, a decline of 8.5%.
As a result, SSGC incurred a loss before tax and interest of Rs 2.45 billion in FY22.
Financing cost increased by over 12% to Rs 5.2 billion in the year ended June 30, 2022, compared to Rs 4.63 billion in FY21. The high financing cost during the period can be attributed to the increase in interest rates during the period.
Further, SSGC disclosed that trade payables under the unconsolidated financial statements include receivables from K-Electric Limited (KE) and Pakistan Steel Mills Corporation (Private) Limited (PSML) amounting to Rs 29.65 billion and Rs 25.31 billion respectively.
SSGC said, “Furthermore, KE and PSML have challenged Late Payment Surcharge (LPS) on their respective balances and therefore the management has decided to recognize LPS on the basis of receipts received from the said entities with effect from 01 July 2012.” ” said.
“Due to PSML’s adverse operational and financial conditions, KE and PSML’s disputes with the company over LPS, and the large accumulation of relevant overdue amounts, we have been unable to determine to what extent the total amounts due from KE and PSML are likely to be recovered,” SSGC said. .
The Company also noted that, given its financial position, the Government of Pakistan (Finance Division) has confirmed to provide necessary financial support to SSGC in the foreseeable future to maintain SSGC’s going concern status. “Therefore, the sustainability of the company’s future operations depends on such support,” SSGC added.
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