Sui Southern Gas Company Limited (SSGC) reported a major financial turnaround for the first quarter of FY24 (Sep 30, 2023), achieving a profit of Rs4.16 billion (Earning Per Share: Rs 4.72), compared to a loss of Rs5.59 billion (Loss Per Share: Rs 6.35) during the same period last year.
The company’s improved performance was driven by a combination of factors, including a slight increase in its top line, reduced costs of sales, lower operating expenses, and a significant reduction in taxation. SSGC’s revenue increased by 1.4%, reaching Rs117.85 billion, attributed largely to tariff adjustments.
The gross profit saw a significant rise of 114.1%, totalling Rs 5.76 billion, helped by a 1.3% decrease in the cost of sales. Gross margins improved to 4.9 %, up from 2.3% in the same period last year. Other income also rose by 52.4% to Rs 5.41 billion.
On the expense side, administration and selling expenses increased by 20.9%, while the allowance for expected credit loss declined by 7.2%. The company also reported a sharp decline of 80.5% in other operating expenses. However, higher finance costs due to rising interest rates increased by 96.7%, reaching Rs 3.24 billion.
SSGC also benefited from a sharp reduction in tax payments, with tax expense falling by 73.6% to Rs238.83 million, compared to Rs903.82 million during the same period in FY23.
