Sui Northern Gas Pipelines Limited

Economic Review, May-June, 2006

Sui Northern Gas Pipelines Limited, the leading and largest integrated gas Company in Pakistan was established in 1963 as a Private Limited Company and converted to a Public Limited Company in 1964. The Company took over the existing Sui-Multan System (349 km of 16" and 129 km of 10" diameter pipelines) from Pakistan Industrial Development Corporation (PIDC) and Dhullian--Rawalpindi--Wah system (132 km of 6" diameter pipeline) from Attock Oil Company in consolidated terms. The total initial network was of 610 km of different diameters, which has been expanded / increased up to 6234 km of Transmission Network. There has been an increase of more then 1000%. The Company has also increased its Distribution Network up to 46,663 km. These are the key factors realizing the Company's Mission to deliver natural gas to all doorsteps in its chosen areas.

The Company started serving gas supply to 67 consumers only in 1963. This has increased to 2.68 million consumers, including 3807 Industrial, 44,080 Commercial and 26,42,021 Domestic consumers.

The Company's sales revenue has reached up to Rs 83,377 million and profit after tax as on June 30, 2005 was Rs 2,755 million. The earning per share (EPS) was Rs 5.52, which is the highest EPS recorded by the Company.

Pakistan Credit Rating Agency (PACRA), one of the leading credit rating agencies has rated the Company as low financial and business risk. The ratings also recognize Company's improving internal cash generation, financial coverage ratios and the exceptionally strong liquidity. It also denotes a very low expectation of credit risk and a very strong capacity for timely payment of financial commitments. Sui Northern Gas Pipelines Limited is a blue chip company on the Stock Exchanges, due to its consistent profitability and investor's confidence. It made a record profit of Rs 3,257 million at the end of the third financial quarter ending March 31, 2006 (EPS Rs 6.52).