Sui Southern Gas Company (SSGC) reported a steep decline in profitability for the quarter ended September 30, 2025, as higher unaccounted-for-gas (UFG) disallowances and rising gas acquisition costs strained its margins. The company posted a profit after tax of Rs271 million, sharply lower than Rs4.87 billion in the same quarter last year, translating into earnings per share of Rs0.31, down from Rs5.53.
Profit before tax fell to Rs1.33 billion, compared with Rs4.91 billion in September 2024. The contraction was driven largely by regulatory adjustments under OGRA’s Final Revenue Requirement determination, which imposed significantly higher UFG disallowances. SSGC absorbed Rs4.68 billion in UFG disallowances during the quarter, up sharply from Rs1.74 billion in the corresponding period.
The company’s cost structure also remained under pressure as the Weighted Average Cost of Gas (WACOG) increased 3.5%, rising from Rs1,108.38 per MCF to Rs1,147.03 per MCF, adding another Rs158 million to UFG-related losses. Finance costs eased slightly to Rs3.30 billion, compared with Rs3.42 billion last year.
While the company prepares its accounts using OGRA’s prescribed return of 21.25% on average net operating fixed assets, adjustments for efficiency benchmarks, particularly UFG, human-resource benchmarks, and doubtful-debt provisions continued to weigh on the bottom line.
SSGC noted that although it is contesting recent regulatory decisions, the quarterly results incorporate the pro-rata impact of OGRA’s determinations currently in effect.
