SNGPL declares high profit before tax of Rs.15.84b for FY 2020-21

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During the year ended June 30, 2021, SNGPL has earned profit before tax of Rs. 15.84 billion, profit after tax of Rs. 10.99 billion and EPS of Rs. 17.32 as compared to profit before tax of Rs. 8.42 billion, profit after tax of Rs. 5.99 billion and EPS of Rs. 9.46 during the corresponding period of last year.

Based on the declared profit, the Company has proposed a final cash dividend of 50% (in addition of interim cash dividend at the rate of Rs. 2.00 per share of Rs. 10/- each i.e. 20% already paid) for FY 2020-21.

Some of the significant factors which helped the Company achieve the results are set out below: Decrease in UFG percentage from 12.32% to 8.60% reducing UFG disallowance from Rs. 11.7 billion in FY 2019-20 to Rs 3.4 billion during the year ended June 30, 2021. The substantial reduction in UFG was made possible due to concerted efforts of the Board and the Management in setting an ambitious target for UFG reduction and achieving tangible results in respect of them. Re-negotiation of finance costs on the borrowing facilities coupled with reduction in interest rates by SBP helped Company reduce the finance cost by over Rs 8 billion.

 

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