LAHORE: The Sui Northern Gas Pipe Line Limited (SNGPL) posted earnings of Rs2.5 billion in 3QFY17 up from Rs217 million in 3QFY16, driven by higher capex and operating profits.
Operating profits for the company improved by 217 percent to Rs4.8 billion in 3QFY17 as company continued to undertake major capex for the completion of LNG pipeline. Another major trigger driving operating profits were lower UFG (Unaccounted for gas) losses as UFG losses came to less than 8 percent in 3QFY17 as compared to over 9 percent during same period last year. SNGPL operates on return on asset formula hence its profitability is directly proportional to its assets expansions and status of UFG losses. Profitability of the company is anticipated to remain strong going ahead on the back of construction of 2nd LNG pipeline and expected revision in UFG benchmark.
