Lahore: Sui Northern Gas Pipelines Ltd (SNGP), a leading entity in Pakistan’s gas distribution sector, convened an analyst briefing today to discuss its FY23 performance and strategic outlook. Despite facing a slight reduction in gas sales, the company maintained its earnings at PKR 10.5 billion, with an earnings per share of PKR 16.66. Efforts to enhance gas production and diversify operations were also highlighted, alongside challenges such as pipeline construction delays in Bannu West due to security issues.

According to AKD Securities Limited, SNGP’s gas sales fell to 1,660 million cubic feet per day from 1,856 in FY22, while unaccounted for gas volumes stood at 38.5 billion cubic feet. Despite these challenges, the company saw a decrease in its unaccounted for gas percentage, a measure of efficiency, to 5.15% from 5.58% the previous year. SNGP, which holds a 65% market share in the country’s gas supply, has been increasing its reliance on re-liquefied natural gas (RLNG) in its sales mix, now accounting for 10% of the national energy mix.

The briefing also covered the company’s operational diversification into the LPG cylinder market and its ongoing commitments to significant natural gas production enhancements, including the Kot Palak and Shewa wells expected to increase supplies by 45 and 70 million cubic feet per day, respectively. Additionally, SNGP’s financial health was supported by improved payment receipts from consecutive tariff hikes and regulatory developments concerning interest charges on its running finance facility.