Sui Northern Gas Pipelines Limited

Economic Review, March, 1998

The gas distribution system of the company increased by 2622 km. which includes gas supply to 4 new towns during the year under review. Similarly, 142,750 customers were added raising the total to 1,538,810 in 1996-97. Out of 1155 Km of transmission pipelines and 12000 BHP compression facilities in Project VI of Phase II is expected to be completed by March 1998. Meanwhile, the company has expanded gas supply to Jhang and Farooqabad in 1997. A digital microwave system is in advance stage of implementation and is likely to be completed by December 1998.

The gas sales for the year were 231.023 mmcf representing an increase of 10.56 per cent over the previous year. Average LPG sales have been 11.41 metric tons per day as compared to 16.76 metric tons per day during the year under review. The company entered into an agreement with Unocal Central Asia and Delta Oil Company on Sept. 5 for import of 1000 mmcfd gas from Turkmenistan to Pakistan at Multan by December 2001, rising in equal increments over a five year period to a level of 1500 mmcfd. The construction work will commence by end 1998.

Gross Revenue including gas sales, rental and services charges, surcharge and interest on arrears of gas sales stood at Rs. 17,353.96 million as [TABULAR DATA OMITTED] compared to Rs. 14,180.52 million in the preceding year, showing an increase of 22.38 per cent. Whereas, Pretax profit during the same period depicted a fall of 15.81 per cent from Rs.765.93 million to Rs.644.80 million. Earning after-tax per share stood at Rs. 1.75, while Price Earning (PE) ratio at the market price of Rs.23.00 worked out to 13:1. The company declared bonus share at the rate of 15 per cent in 1997.

Located at Lahore, the company was incorporated as a private limited on June 17, 1963 and later on converted into a public limited on Jan. 1, 1964. It took over from WPIDC and the Attock Oil Co. Ltd., the existing natural gas transmission and distribution system from Sui to Multan and from Dhulian to Rawalpindi and Wah, against the designed capacity of 267,652 hm3 per day.

Against an Authorized capital of Rs.5000.00 million, the Paid-up capital stood at Rs.2854.12 million divided into ordinary shares of Rs. 10/- each. The government's equity stood at 36 per cent in the company. The company was listed on KSE in 1964. The Paid-up capital increased from Rs.2481.84 million to Rs.2854.12 million due to issuance of bonus shares at the rate of 15 per cent in 1997. The total Assets of the company stood at Rs.37,377.18 million in 1997.