SSGC Reports 26% Decline in Consolidated Profit for FY2026, Announces AGM on November 27
Sui Southern Gas Company Limited (SSGC) has reported a decline in its consolidated profitability for the financial year ended June 30, 2026, with its after-tax profit falling to Rs2.54 billion compared with Rs3.44 billion in the previous financial year.
According to the financial statements submitted to the Pakistan Stock Exchange (PSX), the company’s consolidated revenue from gas sales declined to Rs378.12 billion from Rs450.70 billion in FY2025. After accounting for tariff adjustments, net revenue stood at Rs369.46 billion, compared with Rs446.44 billion a year earlier.
The company’s consolidated gross profit dropped to Rs8.10 billion from Rs12.34 billion, reflecting pressure on its operating performance. Operating profit remained largely stable at Rs20.48 billion against Rs20.51 billion in the preceding year.
Finance costs increased to Rs14.27 billion from Rs12.15 billion, contributing to a decline in profit before levy and taxation to Rs6.21 billion from Rs9.36 billion.
Profit before taxation stood at Rs3.36 billion, compared with Rs3.95 billion in FY2025. Consequently, consolidated earnings per share (EPS) declined to Rs2.89 from Rs3.91.
Unconsolidated Profit Also Declines
SSGC’s unconsolidated financial results also reflected a challenging year. The company recorded an after-tax profit of Rs938.66 million for FY2026, compared with Rs2.69 billion in the previous financial year.
Unconsolidated revenue from gas sales declined to Rs357.76 billion from Rs439.33 billion, while gross profit fell to Rs5.66 billion from Rs10.99 billion.
The company’s earnings per share on an unconsolidated basis decreased to Rs1.07 from Rs3.05.
Auditors Highlight Receivables and Financial Uncertainties
The auditors issued a qualified opinion on the consolidated financial statements, highlighting concerns regarding significant outstanding receivables from K-Electric Limited and Pakistan Steel Mills Corporation.
According to the audit report, SSGC’s trade debts include Rs26.29 billion receivable from K-Electric and Rs21.77 billion from Pakistan Steel Mills. A significant portion of these amounts is overdue, while both entities have disputed late payment surcharges.
The auditors stated that they were unable to determine the extent to which these outstanding amounts would be recovered or the timeframe for their recovery.
The audit report also drew attention to material litigation and claims pending before different courts and forums. Additionally, it highlighted that accrued markup amounting to Rs477.44 billion relating to government-controlled exploration and production companies had not been recognized up to June 30, 2026, based on government advice and a legal opinion.
No Dividend or Bonus Shares Recommended
The Board of Directors, in its meeting held on November 5, 2026, did not recommend any cash dividend, bonus shares or right shares for the financial year.
The company also disclosed no other entitlement or price-sensitive corporate action in its announcement to the Pakistan Stock Exchange.
Annual General Meeting Scheduled for November 27
SSGC announced that its Annual General Meeting (AGM) will be held on Friday, November 27, 2026, at 10:30 a.m.
The meeting will take place at Jade Hall, Arena, Habib Rehmatullah Road, Karsaz, Karachi. Shareholders will have the option to participate physically or through video conferencing.
The company’s annual report will be transmitted through the Pakistan Unified Corporate Action Reporting System (PUCARS) at least 21 days before the AGM.
Financial Outlook
SSGC’s FY2026 results highlight continued financial and operational challenges, including declining revenue, lower profitability, higher finance costs and significant outstanding receivables.
Although the company maintained a relatively stable consolidated operating profit and generated positive operating cash flows during the year, the auditors’ concerns regarding recoverability of major receivables and other financial matters remain important considerations.
Investors will likely monitor developments concerning outstanding payments, disputed late payment surcharges, financial obligations and the company’s operational performance in the coming financial year.
