KARACHI: Sui Northern Gas Pipelines Ltd (SNGPL) posted earnings of Rs8.9 billion in the first nine months of 2020-21, up 54.7 per cent from a year ago, according to a notice on the Pakistan Stock Exchange (PSX) on Monday.

In addition to the simultaneous release of the financial results for October-December 2020 and January-March, the gas distribution company also announced an interim cash dividend of Rs2 per share. Its net profit was Rs2.7bn and Rs3bn for the two quarters, respectively.

In the nine-month period, SNGPL’s sales declined 12pc year-on-year despite a 19pc annualised jump in the off-take of imported gas or RLNG.

“Augmented RLNG sales were offset by lower natural gas despatches (depleting reserves) as well as a 27pc dip in the imported price in lieu of dwindling international Brent oil price (down 15pc year-on-year) amid drastic erosion in aggregate demand post-Covid-19,” said a research note by Arif Habib Ltd.

Meanwhile, finance costs dropped 19pc year-on-year in the January-Mar period to Rs28.8bn because of a sharp cut of 625 basis points in the benchmark interest rate by the central bank to support businesses hit by the coronavirus, it said. “This primarily supported the noteworthy jump in profitability during the period under review,” it added.

The share price of SNGPL decreased 2.07pc to Rs47.34 on Monday.

Published in Dawn, October 5th, 2021