Sui Northern Gas Pipelines Ltd (SNGP) has reported the strongest earnings in its six-decade history. Net profit for the financial year ending June 2024 surged to Rs18.98 billion (EPS Rs29.92), an 80% jump over the previous year’s Rs10.56 billion.
Management attributes the windfall largely to a dramatic reduction in unaccounted-for-gas (UFG) – the catch-all term that covers technical losses, leakage and outright theft. UFG slipped to 4.93% of volumes, the lowest level in 18 years . Every percentage-point shaved off this metric adds roughly Rs4–5 billion to the bottom line, analysts estimate, so an 18-year low translates directly into record profits.
Behind the headline number lies a three-pronged campaign. Pipeline rehabilitation across Punjab and Khyber Pakhtunkhwa, focusing on vintage steel mains that accounted for two-thirds of distribution losses a decade ago. Advanced metering at bulk connections, which has cut “commercial losses” (i.e., theft) by double digits. And targeted enforcement with law-enforcement agencies in known theft hotspots – particularly the textile clusters of Faisalabad and the brick-kiln belts outside Lahore.
These measures have pushed SNGP’s UFG below the 5% regulatory benchmark for the first time since 2006, narrowing the revenue gap that regulators previously disallowed when setting tariffs. The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
