SNGP reports financial performance, outlines future plans

Sui Northern Gas Pipeline (SNGP), the largest integrated natural gas utility in Pakistan, conducted a corporate briefing today, providing insights into its financial performance and future outlook.

The company’s financial performance has been boosted by improved payments to exploration and production (E&P) companies following recent gas price hikes. The cost of diversion of RLNG is now being passed on to consumers, further enhancing cash flows in the system. SNGP has put in place safeguards to ensure stability and protection against potential price diversions.

One of the key highlights of the briefing was the reduction in Unaccounted for Gas (UFG) from 38.6 billion cubic feet (BCF) to 32.5 BCF, representing a 15% annual volumetric reduction and a UFG rate of 5.15%. The company is committed to reducing UFG further and is working hard to achieve this goal.

SNGP also reported progress on its regional expansion plans, including the launch of a new LPG Air Mix plant in Gilgit, which has expanded its regional presence. The company has also introduced a comprehensive digital map and customer services dashboard, as well as implemented detailed micro-level monitoring for UFG to ensure accurate tracking and management.

In addition, the company highlighted the importance of RLNG in meeting Pakistan’s energy demand, with SNGP supplying 65% of this demand. The country’s energy sector relies on natural gas for 29% of its energy needs and RLNG for 10%.

The company also provided an update on crude oil prices, which are currently stable but uncertain due to the ongoing Ukraine war.

The shareholding structure of SNGP consists of 32% direct ownership and 26% indirect ownership by the Government of Pakistan, while the remaining 42% is held by the general public and other stakeholders.

For the first quarter (1QFY24), SNGP reported earnings of Rs3.7 billion with an earnings per share (EPS) of Rs5.84. This contrasts with the previous fiscal year FY23, where the company achieved earnings of Rs10.6 billion and an EPS of Rs16.66.