Karachi: Sui Southern Gas Company Limited (SSGC) has officially requested an extension for holding its Annual General Meeting (AGM) for the fiscal year 2023-24, targeting a new date of April 30, 2025. The company has cited delays in the finalization of its financial statements due to pending regulatory approvals as the primary reason for this extension.

According to information available from the Pakistan Stock Exchange (PSX), SSGC is facing significant delays in the audit and finalization of its financial statements for FY 2022-23, which in turn impacts its readiness for the upcoming AGM. The regulatory approval required from the Oil and Gas Regulatory Authority (OGRA) has only recently been granted, with OGRA releasing its decision on the Final Revenue Requirement (FRR) for FY 2022-23 on October 1, 2024.

The delay stems from SSGC's inability to finalize the previous year's accounts and submit its FRR petition for FY 2023-24. The audited opening balances necessary for the petition have not been available, which has set back the company's entire financial schedule.

In a letter to the Securities and Exchange Commission of Pakistan (SECP) dated October 4, 2024, SSGC outlined the sequence of events and provided justifications for the requested AGM extension. The company's last AGM was held on December 29, 2023, where the financial statements for the year ending June 30, 2022, were presented. The company is now required to hold the next AGM by October 28, 2024, and lay down the audited financial statements for the year ending June 30, 2024.

SSGC's external auditors have indicated that the audit for FY 2022-23 is expected to be completed within the next month, following the recent OGRA decision. This completion will enable the subsequent audit processes and financial preparations for FY 2023-24.

The application to SECP also includes a signed affidavit from SSGC's Chief Financial Officer and a bank challan for the application fee, asserting the company's commitment to resolving these delays and holding the AGM at the proposed later date.

Furthermore, the company has assured that once the audits are finalized and the AGM for FY 2022-23 is conducted, it will proceed with the financial statements for FY 2023-24 and ensure timely compliance for future regulatory requirements.

SSGC's proactive measures in handling these regulatory and audit delays highlight the complexities of operating within Pakistan's regulated energy sector, emphasizing the need for timely regulatory decisions to maintain corporate compliance and shareholder communications.