Sui Northern Gas Pipelines Limited

Economic Review, Nov, 2006

Sui Northern Gas Pipelines Limited (SNGPL) was incorporated as a private limited Company in 1963 and converted into a public limited company in January, 1964 under the Companies Act 1913, now Companies Ordinance, 1984, and is listed on all the three Stock Exchanges of the country.

The Company took over the existing Sui--Multan System (217 miles of 16 inch and 80 miles of 10-inch diameter pipelines) from Pakistan Industrial Development Corporation (PIDC) and Dhullian--Rawalpindi--Wah system (82 miles of 6-inch diameter pipelines) from Attock Oil Company Limited. The Company's commercial operations commenced by selling an average of 47 MMCFD gas in two regions viz. Multan and Rawalpindi, serving a total number of 67 consumers.

SNGPL is the largest integrated Gas Company serving more than 2.7 million consumers in Northern & Central Pakistan through an extensive network in the Punjab and the NWFP. The Company has over 43 years of experience in operation and maintenance of high-pressure transmission and distribution systems. It has also expanded its activities to undertake the planning, designing and construction of pipelines, both for itself and other organizations.

The Company has excellent profit earning track and is continuously increasing its Earning Per Share (EPS). The Company has earned sales revenue of Rs. 105.851 billion during the year ended June 30,2006 as compared to Rs. 83.377 billion during the last corresponding year and has managed an increase of 26.95% over the last year. The profit before tax has increased from Rs. 4,261 million to Rs. 5,119 million during the year ended June 30, 2006. The Company has very good future prospects and is continuously expanding its transmission as well as distribution network in order to enhance its sales revenue. The Company's share price has significantly risen from Rs. 61.30 per share as on June 30,2005 to Rs. 100 per share as on June 30, 2006.

The Company is fully aware of its responsibility towards the society and the environment and frequently donates towards charitable causes and sponsors projects on preservation of natural resources. By supplying gas to Murree Hills and Sawat Valley, SNGPL has made a valuable contribution towards conservation of forests, environmental protection and safety of tourist's resorts.