Karachi: SG Power Limited has announced a substantial financial loss for the fiscal year ending June 30, 2025, as detailed in its recently released Chairperson's Review Report and financial statements. The company's financial results reveal a net loss of Rs. 8.40 million, a sharp contrast to the profit of Rs. 1.67 million reported in the previous year. This downturn is attributed to a combination of factors, including increased administrative and selling expenses and reduced demand for electricity from its sister concern, SG Allied Businesses Ltd.
The company, which is listed on the Pakistan Stock Exchange Limited, faced a turbulent year characterized by fluctuating gas supply and rising fuel costs, contributing to an overall increase in generation expenses. According to information available from the Pakistan Stock Exchange (PSX), SG Power Limited's sales plummeted to Rs. 6.15 million from Rs. 17.30 million in the previous year, primarily due to SG Allied Businesses Ltd. opting to purchase less power from SG Power Limited in favor of cheaper alternatives from K. Electric.
SG Power Limited's board completed its annual self-evaluation for the year ending June 30, 2025, classifying its performance as satisfactory despite the financial challenges. The board continued to emphasize strategic planning, governance, and monitoring of business activities to align with the company's objectives. However, the financial strain was evident as administrative and selling expenses rose to Rs. 6.62 million from Rs. 663,001 in the previous year, impacting the company's profitability.
The auditors have expressed concerns about the company's ability to continue as a going concern, citing the substantial loss and accumulating deficit, which increased to Rs. 266.78 million from Rs. 258.37 million. Despite these challenges, the board and directors remain optimistic, attributing the loss to administrative costs and asserting that there is no material uncertainty regarding the company's future viability.
In light of these developments, SG Power Limited has scheduled its Annual General Meeting for October 24, 2025, at the company's registered office in Karachi. Shareholders are urged to confirm their attendance and ensure that any changes in their mailing addresses are promptly communicated to the company's share registrar.
The report underscores the need for SG Power Limited to address the rising costs and declining sales to improve its financial health and ensure long-term sustainability in a competitive energy market.