SSGC’s loss reaches 10bn in FY2021-22

KARACHI: Sui Southern Gas Company’s (SSGC) net consolidated loss has reached Rs10 billion in nine months ended March 31, 2022 on the back of massive increase in unaccounted-for-gas (UFG) losses and rise in financial cost, ARY News reported on Tuesday.

According to the data sent to the Pakistan Stock Exchange (PSX) on Tuesday, the gas transmission and distribution company registered a loss of Rs5 billion in first nine months of fiscal year 2021-22.

However, the company registered a profit of Rs1.90 billion in the corresponding period of 2020-21.

The financial report revealed that unaccounted-for-gas (UFG) losses also increased by 2 percent to highest rate of 19pc in first nine months. “Due to financial losses and gas shortage, the losses in 2021-22 are likely to be at Rs8 to 10 billion,” the report revealed.

The report stated that the company was fined Rs36 billion by Oil & Gas Regulatory Authority (OGRA) in 2017, which was paid in three installments. Following the payments in 2020-21, the company had shown a profit of Rs2 billion.

Sources within the company told ARY News that a 25 to 50 percent increase in officers’ salaries was recommended despite the deficit.  Due to differences with the company’s top officials and other reasons, two directors including a secretary have also resigned.