KARACHI: Sui Southern Gas Company Limited (SSGC) reported a significant decline in profitability for the nine months ended March 31, 2026, as higher operating costs, finance expenses, and credit loss provisions weighed heavily on its financial performance. The company announced its financial results following a meeting of its Board of Directors held on April 29, 2026.

According to the unconsolidated financial statements, SSGC posted a profit after tax of Rs174.8 million for the nine-month period, a steep fall from Rs6.94 billion earned during the corresponding period last year. Earnings per share (EPS) also dropped sharply to Rs0.20, compared with Rs7.88 in the same period of FY2025.

The company’s net revenue stood at Rs272.8 billion, down from Rs347.9 billion a year earlier. Cost of revenue remained almost at par with revenue, resulting in a gross profit of just Rs202.7 million, compared with Rs8.05 billion in the corresponding period last year.

During the review period, SSGC incurred administrative and selling expenses of Rs5.84 billion, while finance costs increased to Rs12.25 billion. The company also booked Rs7.98 billion as expected credit loss allowances, adding further pressure to earnings. However, other income of Rs27.25 billion helped partially offset these expenses.

On the balance sheet, total assets increased to approximately Rs1.17 trillion as of March 31, 2026, compared with Rs1.11 trillion at the end of June 2025. Total liabilities also rose to Rs1.16 trillion, while shareholders’ equity declined slightly to Rs7.93 billion.

The company’s cash flow from operating activities remained positive at Rs11.6 billion, although investing and financing activities resulted in net cash outflows during the period, leading to a reduction in cash and cash equivalents.

The Board of Directors did not recommend any cash dividend, bonus shares, right shares, or any other corporate action along with the financial results.

Despite maintaining positive operating cash flows, SSGC’s earnings performance reflects the challenging operating environment, with rising financing costs and credit-related provisions significantly impacting the company’s bottom line during the first nine months of FY2026.