Karachi: Sui Southern Gas Company Limited (SSGC) has announced its financial results for the first quarter of the fiscal year 2024-25, reporting significant progress in operational efficiency and financial recovery. The financial statements, presented by the Board of Directors, reveal a profit before taxation of 4,914 million rupees, illustrating a Big move compared to the previous year. The profit after taxation and levy stands at 4,871 million rupees, reflecting a Big move from the corresponding period of the previous year.

According to information available from the Pakistan Stock Exchange (PSX), the company’s efforts to maintain unaccounted-for-gas (UFG) at 10.01% from 10.14% the previous year have been pivotal in achieving these results. The company has consistently reduced UFG over the years, with a cumulative reduction of 40 billion cubic feet from fiscal year 2018-19 to 2023-24.

The directors' review highlights the company's commitment to operational excellence, focusing on network rehabilitation, zonal management implementation, and technological investments. The designated market category for SSGC includes utilities, with the company keen on providing reliable and sustainable gas supplies.

SSGC's financial adjustments are impacted by efficiency benchmarks, including UFG, human resource costs, and provisions for doubtful debts. The Weighted Average Cost of Gas (WACOG) increased, leading to an incremental UFG disallowance of 74 million rupees. The finance cost for the period was 3,415 million rupees.

Region-specific improvements were noted in UFG metrics, with Karachi maintaining single-digit UFG and Interior Sindh achieving a UFG of 7.24%, under the OGRA benchmark. Balochistan saw a reduction to 30.3%, down from 48% the previous year; however, reaching the OGRA benchmark in Balochistan requires federal policy intervention.

SSGC's future outlook includes key projects such as the upgradation of SMS Larkana and Nawabshah, targeting a rehabilitation of 2,500 km for FY 2024-25, and significant theft disconnection initiatives affecting 36,982 households. The company also conducted inspections to identify leaks and corrosion contributing to UFG.

The Board expressed appreciation for the support from shareholders, customers, employees, and government bodies, acknowledging their role in the company’s achievements.