SNGPL’s profitability declines to Rs14.6bn in FY2025

The profitability of the Sui Northern Gas Pipelines Limited (SNGPL) declined to Rs14.6 billion (EPS: Rs23.01) in fiscal year 2025 from Rs19 billion (EPS: Rs29.92) in fiscal year 2024, mainly due to a reduction in the Return on Assets (ROA) as the regulated return fell from 26.22 percent to 21.25 percent following a decline in the interest rate. According to Topline Securities, SNGPL conducted a corporate briefing on Wednesday, where the management discussed financial performance and future outlook. The management noted that the payout has temporarily declined due to the circular debt situation. However, they expect the payout ratio to improve once the issue is resolved. KPMG has been engaged as a consultant to support the resolution of circular debt, and significant efforts are currently under way. Regarding changes to their asset-based model, management stated that the Oil and Gas Regulatory Authority (Ogra) has been working on revising the rate of return in its previous ROA decision. The OGRA indicated that a revision would occur after some time, and the OGRA is now exercising this option. They believe there will be no change to the fixed-based regime, and it will continue like this.