Observer Report Islamabad
SNGPL has earned profit after tax of Rs.5,998 million and EPS of Rs. 9.46 as compared to profit after tax of Rs 7,076 million and EPS of Rs. 11.16 during the corresponding period of last year.
Based on the declared profit, the Company has proposed a final cash dividend of 40% for FY 2019-20.
Following are the primary reasons, which have resulted into decrease in Company’s profitability as compared to corresponding year;
Increase in UFG percentage from 11.86% to 12.32% and accordingly UFG disallowance from Rs 10,528 to Rs 11,742 million.
Even though UFG volumes decreased from 52.5 BCF in previous year to 48.3 BCF during the current year, the increase in UFG percentage is mainly due to decrease in availability of indigenous gas volumes during the year.
However, the value of disallowance increased due to increase in National WACOG used for valuing UFG disallowance by the Regulator.