⚡ Flash Summary

Sui Northern Gas Pipelines Limited (SNGPL) reported unaudited results for the period ending March 31, 2025. The company achieved a profit before tax of Rs. 17,657 million, an increase compared to Rs. 16,440 million in the corresponding period last year. Profit after tax, however, marginally decreased to Rs. 10,138 million from Rs. 10,724 million due to increased tax provisions. Earnings per share (EPS) decreased slightly to Rs. 15.98 from Rs. 16.91. Despite economic challenges in the gas sector, SNGPL’s profitability remains strong, driven by infrastructure expansion and operational improvements.

📌 Key Takeaways

• ✅ Profit before tax increased to Rs. 17,657 million from Rs. 16,440 million YoY.
• ❌ Profit after tax marginally decreased to Rs. 10,138 million from Rs. 10,724 million YoY due to higher tax provisions.
• 📉 Earnings per share (EPS) decreased to Rs. 15.98 from Rs. 16.91 YoY.
• 📉 Marginal decrease in profit after tax due to increased provision for taxation.
• 📉 Disallowance against UFG benchmark witnessed increase, despite reduction in volume from 24,559 MMCF to 22,985 MMCF.
• 🚧 59.87 kms of Transmission Lines laid with diameters ranging from 6” to 24”.
• 🚧 352.996 kms of Distribution mains were laid to improve pressure and gas supply to new towns.
• ✔️ 18″ dia × 230 km Shaheed Fahad Ashfaq Project connecting Bannu West and Wali gas fields to Daudkhel was commissioned on March 23, 2025.
• ✔️ Construction progressed on multiple transmission pipelines under the Kot Palak Project to inject 45 MMCFD gas.
• ✔️ 16” dia × 3 km Chah Tamboli–Sundar Industrial Estate Loopline is ready for commissioning.
• ✔️ Construction of 20″ dia × 13.6 km QV-2 to Fauji Fertilizer pipeline at Mirpur Mathelo is progressing.
• ✔️ Completed an 8″ dia × 2.5 km Makori East-6 Flow Line for M/s MOL and Razgir-1 to Tulanj West Well-2 (8” dia × 13 km).
• ✔️ Tulanj West Well-2 to EPF Tulanj (10” dia × 7 km) is complete and ready for commissioning.

🎯 Investment Thesis

SNGPL is a HOLD. While the company demonstrates consistent performance and is expanding its infrastructure, rising tax burdens and operational inefficiencies (UFG) offset potential gains. Regulatory risks remain high, and EPS is declining. A cautious approach is warranted until these challenges are addressed.