KARACHI, Feb 24: Sui Southern Gas Company (SSGC) maintained a pre-tax profit of Rs801 million during the first half of the fiscal year 2005-06. However, net profit suffered a decline from Rs524 million to Rs361 million, largely due to an increase in taxation charge, which included an adverse prior year adjustment of Rs82 million and a current year amount of Rs45 million.

During this period, the company significantly improved its unaccounted for gas (UFG) position to 6.84 per cent as against 7.48 per cent last year.

The SSGC board of directors met here on Friday under the chairmanship of Aitzaz Shahbaz to consider and approve the company’s audited accounts for the first half of the fiscal year 2005-06.

SSGC closed the first six months on a positive note, showing a 19 per cent increase in sales value to Rs31.6 billion, but achieved a relatively smaller growth of four per cent in volume to 174,931 mmcf. The company’s cost of gas increased by 14 per cent on account of higher well-head prices.

Transmission and distribution cost as a percentage of revenue declined from 6.9 per cent to 6.5 per cent, but financial charges increased by Rs177 million on account of higher interest rates as well as the volume of debt carried during this period. Capitalization was higher by over 20 per cent compared to the last year.

The SSGC’s five-year business development plan envisages an investment of Rs46 billion mainly in new transmission lines both on the ILBP and IRBP system and rehabilitation of distribution lines.—APP