KARACHI: Sui Southern Gas Company Limited (PSX: SSGC) witnessed a drastic 59% decline in its consolidated profit for the year ended June 30, 2025, which fell to Rs. 3.44 billion from Rs. 8.29 billion in the previous year, as the crippling circular debt crisis and soaring financing costs severely impacted profitability.
Earnings per share (EPS) mirrored the plunge, dropping to Rs. 3.91 from Rs. 9.41 a year earlier. This sharp contraction occurred despite nearly flat year-on-year revenue, which saw a marginal increase of 0.8% to Rs. 450.70 billion.
The company’s gross profit remained resilient but saw a slight decrease of 3.3% to Rs. 12.34 billion. However, the bottom line was hammered by a significant finance cost of Rs. 12.15 billion and a substantially higher tax charge.
The financial statements were marred by a qualified audit opinion, highlighting extreme vulnerabilities in the company’s balance sheet. The auditors flagged trade debts of Rs. 28.54 billion from K-Electric and Rs. 21.77 billion from Pakistan Steel Mills, noting their recoverability was uncertain due to the debtors’ “adverse operational and financial conditions.”
In a further revelation of the sector’s deep-rooted issues, the auditors emphasized that the company, on government advice, has not recognized accrued markup of a staggering Rs. 370.66 billion from government-controlled exploration and production companies.
Against this challenging backdrop, the Board recommended a final cash dividend of Re. 0.50 per share. The results underscore the severe structural and financial headwinds facing the gas sector, where profitability is being erased by legacy debt and soaring cost of operations.
