01 October 2004	Friday	15 Shaban 1425

KARACHI, Sept 30: Sui Southern Gas Company Limited (SSGC) declared a 15 per cent cash dividend (Rs1.50 per share) for the year ended June 30, 2004.

This was announced by the board of directors of the company in a meeting held on Thursday in Islamabad. The meeting, presided over by SSGC Chairman Aitzaz Shahbaz, reviewed the audited accounts of the company for the year 2003-04.

The board was informed that during the year, SSGC's sales increased to Rs54.4 billion as compared to Rs41.6 billion of 2002-03, up by 31 per cent. Volume-wise, gas sales rose by 25 per cent to 318,068 mmcfd as compared to 254,349 mmcfd the previous year largely due to the power sector and other industrial customers.

The company earned an after tax profit of Rs1.0 billion as compared to Rs1.4 billion the previous year. The earning per share amounted to Rs1.49 as against Rs2.16 the previous year.

The decline in earning per share has been due to non-allowance of following charges by the regulator. Such as penalty of Rs123.8 million received by the company from gas producers on account of non-compliance to gas supply contract added back OGRA to the operating income of the company.

Disallowance of Rs226.5 million or 0.59 per cent on account of unaccounted for gas (UFG) being in excess of the targeted UFG over of 6.5 per cent as compared to 7.09 per cent achieved by the company. Disallowance of provision for doubtful debts amount to Rs177.327 million.

According to a press release, the company had decided to file a revenue petition before the regulator in respect of the dis allowances. In case company succeeds to get a favourable decision on these items, profits of the company may increase accordingly.

SSGC said that due to the procedural requirements the targeted capital expenditure could not be achieved and an amount of Rs2 billion was capitalized, which was offset by depreciation of Rs1.9 billion. Due to the above there was no option but to carry forward the major projects costing Rs1.5 billion to the current financial year i.e. 2004-05.

However, during the current financial year 2004-05, SSGC will have a much larger asset capitalization as work on capital projects to the tune of Rs7.0 billion is in progress and it is expected that the company will achieve the targets.