⚡ Flash Summary

SSGC’s financial results for the year ended June 30, 2025, show a mixed performance. Unconsolidated profit for the year decreased significantly to PKR 2.689 billion from PKR 6.839 billion in the previous year. The company declared a final cash dividend of Re 0.5 per share, representing a 5% payout. Auditors have issued a qualified opinion related to receivables from K-Electric and Pakistan Steel Mills and non-compliance with IFRS 14.

📌 Key Takeaways

• 📉 **Profit Decline:** Unconsolidated profit after tax decreased from PKR 6.839 billion in 2024 to PKR 2.689 billion in 2025.
• 💰 **Dividend Announcement:** Final cash dividend of Re 0.5 per share (5%) declared for the year ended June 30, 2025.
• ⚠️ **Qualified Audit Opinion:** Auditors issued a qualified opinion due to concerns over receivables from K-Electric and Pakistan Steel Mills.
• ❗ **IFRS 14 Non-Compliance:** The company did not comply with IFRS 14 requirements due to the absence of an exemption renewal.
• 📊 **Revenue Decrease (Unconsolidated):** Unconsolidated revenue decreased to PKR 435.074 billion from PKR 465.870 billion.
• 🧾 **Consolidated Revenue Decrease:** Consolidated revenue decreased to PKR 446.444 billion from PKR 500.529 billion.
• 📉 **Consolidated Profit Decrease:** Consolidated profit after tax decreased to PKR 3.441 billion in 2025 from PKR 8.292 billion in 2024.
• 😓 **Earnings Per Share (Unconsolidated):** Unconsolidated basic and diluted earnings per share decreased to PKR 3.05 from PKR 7.76.
• 💸 **Earnings Per Share (Consolidated):** Consolidated basic and diluted earnings per share decreased to PKR 3.91 from PKR 9.41.
• ⚖️ **Litigation and Claims:** The company is subject to material litigations and claims, as mentioned in note 36.1.
• ⚠️ **Unrecognized Markup:** The company has not recognized accrued markup of PKR 370.655 million relating to Government Controlled E&P Companies (note 34.2).
• 📅 **AGM Date:** The Annual General Meeting will be held on November 27, 2025.
• 🛑 **Trade Debts Concerns:** Trade debts include receivables of PKR 28.539 million and PKR 21.770 million from K-Electric Limited and Pakistan Steel Mills Corporation, respectively.

🎯 Investment Thesis

Given the decline in profitability, the qualified audit opinion, and the IFRS 14 non-compliance, a HOLD recommendation is appropriate. While the company continues to operate in a critical sector, the current financial challenges and uncertainties warrant caution. A potential price target would require further analysis of the company’s assets, liabilities, and future cash flows. I will not give a price target due to limited information.