Sui Southern Gas Company Limited (SSGC) has reported a significant SSGC profit decline for the fiscal year ending June 30, 2026. According to the consolidated financial statements submitted to the Pakistan Stock Exchange on Thursday, the utility's profit fell by 26% to Rs2.54 billion, down from Rs3.44 billion recorded in the previous year. This downturn was primarily driven by a sharp reduction in revenue from gas sales and rising financial obligations.
Revenue and Operational Performance
The company’s core business saw a notable contraction during the period under review. Revenue from gas sales contracts decreased by 16% to Rs378.12 billion. After accounting for a tariff adjustment—the mechanism used by the regulator to align prices with costs—of Rs8.67 billion, the net revenue stood at Rs369.46 billion. This represents a 17% decline compared to the Rs446.44 billion earned in the prior fiscal year.
While the cost of gas sales also fell by approximately 17% to Rs361.36 billion, the overall gross profit still plummeted by 34%, settling at Rs8.10 billion. The company managed to reduce its operating expenses to Rs14.40 billion, and a 9% increase in other operating income helped keep the profit from operations relatively stable at Rs20.48 billion.
Rising Costs and Taxation
Despite stable operational earnings, the bottom line was squeezed by higher borrowing costs and taxes. Finance costs—the interest paid on debt—increased to Rs14.27 billion from Rs12.15 billion. Additionally, while the company paid a lower levy of Rs2.85 billion compared to the previous year, its tax bill surged. SSGC paid Rs817.44 million in taxes in FY26, a 61% increase from the Rs507.49 million paid in the previous year.
As a result of these factors, the earnings per share (EPS) for the company dropped to Rs2.89, compared to Rs3.91 in the same period last year. This reflects the reduced profitability available to the company's shareholders.
Aasan alfaaz mein
Sui Southern Gas Company (SSGC) ka munafa pichlay saal ke muqablay mein 26 feesad kam ho gaya hai. Gas ki farookht se honay wali aamdani kam hui hai aur bankon ke sood aur tax ke akhrajaat barh gaye hain. Is ka matlab hai ke company ki mali halat pichlay saal ke muqablay mein kamzor rahi hai.
