ISLAMABAD: Sui Southern Gas Company has posted after tax earnings of Rs8614 million in 2016-17.
The company posting losses since 2013-14 has yet to finalise accounts for financial year 2016-17.
According to official data, the company has been in loss since 2013-14. During 2013-14 its loss after was Rs3753 million, which increased to Rs5391 million during 2014-15 and in 2015-16, company’s after tax loss was Rs6115 million.
The officials of the company blamed delay in revision of consumer sales price resulted in excessive financial charges and delayed payments to its creditors affecting adversely the financial position of the company.
They also argue that since 2011, the SSGC was preparing its accounts based on stay granted by the Sindh High Court (SHC) on matters relating to UFG bench mark, treatment of late payment surcharge, royalty from JJVL and profit from meter manufacturing from FY 2010-11 to FY 2014-15. However, the honourable court dismissed all the appeals filed by SSGC against OGRA which contributed to overall loss to the company.
On the other hand after showing losses for consecutive three years SNGPL showed profit in 2015-16 and 2016-17.
It posted a profit of Rs124 million in 2015-16 and after tax earnings of Rs8614 million in 2016-17.
During 2013-14 its losses were Rs3964 million which reduced to Rs2494 million in 2014-15.
Increase in UFG percentage and reduction in UFG benchmark by OGRA from 7 percent to 4.5 percent increased UFG disallowance which further aggravated the company’s losses. The officials claim increase in provision of doubtful debt disallowance further deteriorated the financial position of the company.
