Author Topic: SSGC -- Sui Southern Gas Company  (Read 194198 times)

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um@ir

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SSGC -- Sui Southern Gas Company
« Reply #-1 on: October 06, 2008, 02:27:44 PM »
Separate thread for SSGC
« Last Edit: July 27, 2016, 08:15:50 PM by Valueestimator »

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SSGC -- Sui Southern Gas Company
« Reply #-1 on: October 06, 2008, 02:27:44 PM »

um@ir

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SSGC -- Sui Southern Gas Company
« on: October 29, 2008, 11:01:32 AM »
SNGP profit takes 60pc tumble



KARACHI: Pakistan's largest gas distribution company Sui Northern Gas Pipelines Limited (SNGP) has announced its result for the first quarter of financial year 2008-09 (1QFY09) on Tuesday here. The result depicts a gloomy picture as compared to the bottom line figures of previous quarters.
The profit after tax of SNGP slumped by 60.2 per cent from Rs1,013 million to Rs403 million. The earning per share of the SNGP has been calculated to be Rs0.73 as against Rs1.84 in 1QFY08, according to the financial result sent by the company to KSE. The gross profit of the company has increased by 12.6 per cent from Rs3.95 billion to Rs4.45 billion during the period under review. Net sales significantly increased by 32.8 per cent to Rs39.86 billion from Rs30.01 billion due to the higher gas prices.
However, owing to higher well head gas prices, the cost of sales also surged by 35.9 per cent to Rs35.40 billion. Other operating income massively declined by 57.2 per cent to Rs149.12 million. Financial cost was decreased by 20.7 per cent to Rs166 million.

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SSGC -- Sui Southern Gas Company
« Reply #1 on: August 11, 2009, 12:48:58 AM »
sleeping support 28.3 resistance 30

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« Reply #2 on: August 30, 2009, 02:32:04 PM »
Sui Northern Gas Pipelines Limited (SNGPL) being one of the two gas distribution companies
is responsible for the transmission and distribution of gas in northern region of Azad Kashmir,
Punjab and NWFP. In today's Value Seeker we present the operational performance of
SNGPL along with the impact of the IP pipeline on the company's profitability going forward.
Where returns are guaranteed and quick
According to the provisions of a WB loan drawn, SNGPL is required to earn a return of
17.5%/anum on the value of average operating assets, net of deferred credit. Having its
profitability linked to assets, it encourages the company to concentrate on network
expansion thus LT investment. Moreover, returns being guaranteed at EBIT level i.e. before
fin. charges, discourage SNGPL to take excessive debt thus avoid the possibility of financial
distress. The 17.5% guaranteed return is however reduced by the company's UFG losses.
WACOG to support the bottomline
Despite guaranteed returns, inability to manage the UFG losses has been eating up SNGPL's
profits, where the company's return was reduced to 9.3% in FY08, reducing the bottomline
by Rs3,281mn (EPS impact by Rs3.69). In FY09, however, the company is expected to register
a much higher UFG loss (8.20% vs. 8.04% in FY08) having incurred 3,818mn in 9MFY09, a
massive 73% increase over 9MFY08 YoY. Weighted Average Cost of Gas (WACOG) being
the rate at which the company purchases gas is also used to calculate the UFG loss incurred
by the company thus, any change in WACOG directly impacts the bottomline (direct
correlation). With ~30% slide in wellhead prices expected, we expect a decline in WACOG,
effective from Jul-09. This in turn is expected to support earnings going forward.
Iran-Pakistan (IP) pipeline update
At a time when the IMF’s pressure is at its peak to remove subsidies from electricity tariffs,
the govt. has been trying to arrange for alternate fuels for electricity generation to stabilize
the cost of electricity. The IP pipeline project being on top of the list of alternates with a
relatively shorter timeline compared to the extensive hydel generation projects has been
turned to as a savior contracting import of 750mmcfd of gas for a period of 25 years.
Whereas sale of gas has no direct impact on the bottomline of SNGPL, supply of gas which
is the gas available for distribution determines the network expansion that can be undertaken
by the utility. This in turn is expected to determine the investment in operating assets and
thus the bottomline of the company. However, the extent of the impact will be determined
by the treatment of the construction income received by SNGPL from ISGS, a joint venture
held by the 2 GDCs. Returns of SNGP being guaranteed at operating level will increase only
to the extent of the inclusion of any such construction income to the non-operating income.
Recommendation - Hold
With construction work on the IP pipeline expected to start in the next few weeks all
positives have been priced in, the scrip has reached its Dec-09 TP of Rs32/share. "Hold"!

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« Reply #3 on: September 11, 2009, 01:09:47 PM »


movement witness in sngp after a long time
buy with stop at 28

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« Reply #4 on: September 11, 2009, 01:48:46 PM »

board meeting on 28th sept

eps expected around 2.4 with dividend of rs 2

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« Reply #5 on: September 12, 2009, 01:11:11 PM »

broke above resistance at 28.7
buy signals on charts
target 32

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« Reply #6 on: September 14, 2009, 02:00:02 PM »

broke above resistance at 28.7
buy signals on charts
target 32

upper lock

um@ir

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SSGC -- Sui Southern Gas Company
« Reply #7 on: September 14, 2009, 08:48:12 PM »

broke above resistance at 28.7
buy signals on charts
target 32

Gr8 Call !!! superb !  ;D

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« Reply #8 on: September 28, 2009, 12:11:47 PM »
SNGP: FY09 Result Preview

SNGPL is set to announce its full year FY09 result today. We expect the company to post NPAT of PkR1.5bn (EPS-PkR2.79) for the period versus NPAT of PkR2.5bn (EPS-PkR4.55) reported in full year FY08 – a decline of 39%YoY......                 

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« Reply #9 on: September 28, 2009, 03:20:19 PM »
eps 1.69 no payout

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« Reply #10 on: September 28, 2009, 03:43:26 PM »
28-SEP-09 SNGP Sui North Gas Pipe. FINANCIAL RESULT FOR THE YEAR ENDED 30/06/2OO9
28-SEP-09 SNGP Sui North Gas Pipe. PROFIT/LOSS BEFORE TAXATION RS. IN MILLION 1,730.240
28-SEP-09 SNGP Sui North Gas Pipe. PROFIT/LOSS AFTER TAXATION RS. IN MILLION 930.536
28-SEP-09 SNGP Sui North Gas Pipe. EPS = 1.69
28-SEP-09 SNGP Sui North Gas Pipe. ANNUAL GENERAL MEETING WILL BE HELD ON 29/10/2OO9
28-SEP-09 SNGP Sui North Gas Pipe. BOOK CLOSURE FROM 22/10/2009
28-SEP-09 SNGP Sui North Gas Pipe. BOOK CLOSURE TO 29/10/2009

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« Reply #11 on: October 28, 2009, 11:59:48 AM »
SNGPL profits drop by 63 per cent  

LAHORE: The profits of the Sui Northern Gas Pipeline Limited (SNGPL) have dropped by 63 per cent in a year (from Rs4.55 per share last year to Rs1.69 this year), and the company would not be able to provide any dividend to investors.

According to the company’s financial picture reflected in its annual report (2009), which it is going to present at its annual general meeting on Friday, the company posted an after tax profit of Rs2.49 billion last June, which dropped to Rs0.93 billion this year.

This is despite the fact that the company drew Rs1 billion from its ‘revenue reserves’ to boost profit. If those Rs1 billion are deducted from this year profit, the company’s net loss totals up to Rs70 million.
 
According to the report, the total SNGPL liabilities have increased by a whooping Rs26 billion in last one year – from Rs80.508 billion last year to Rs106 billion this year. Its assets, however, increased from Rs34 billion last year to Rs43 billion this year.

The total equity decreased by Rs1 billion (which were taken out of revenue reserves) to keep profits healthy, it thus came down to Rs16 billion from last year’s Rs17 billion.

It may be mentioned here that the company contributed Rs100 million donation to LUMS (Lahore University of Management Sciences) this year, when its own profits, according to its own annual report, dwindled by 63 per cent. Actually, the company suffered a net loss of Rs70 million if the revenue reserved transfer is deducted from the final profit.

Putting the report in context, a company official says that the ‘current ratio is less than one’ – in simple terminology, it means current company liabilities have acceded assets – thus the company, legally speaking, cannot provide any dividend to its investors this year.

Explaining whooping loss in a year’s time, the official, who preferred not to be named, said three factors clarified the loss and its quantum. ‘Gas losses are the prime source. That is why the annual report 2009 has skipped the topic altogether. Though the transmission people still claim them to be around 8.5 per cent, their financial impact has increased manifold due to period increase in prices.’

The Oil and Gas Regulatory Authority (Ogra) has also set certain benchmark for company efficiency. The authority makes these benchmarks more and more stringent. Like, the line losses were fixed at six per cent a few years ago and they are coming down half a per cent every year. They currently stand at around four per cent, whereas the actual losses are 8.5 per cent. This year, the gap between both figures, along with other inefficiencies, has cost the company Rs5 billion.

Secondly, the company has not been able to create new assets because there were no new discoveries. Rather, most of its current assets are depreciating fast. The Sui and Qadirpur fields were the prime examples of natural depreciations, he said.

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« Reply #12 on: October 30, 2009, 11:22:45 AM »
30-OCT-09 SSGC Sui South Gas FINANCIAL RESULT FOR THE FIRST QUARTER ENDED 30/09/2009
30-OCT-09 SSGC Sui South Gas PROFIT/LOSS BEFORE TAXATION RS. IN MILLION 196.248
30-OCT-09 SSGC Sui South Gas PROFIT/LOSS AFTER TAXATION RS. IN MILLION 65.312
30-OCT-09 SSGC Sui South Gas EPS = 0.10

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SSGC -- Sui Southern Gas Company
« Reply #13 on: October 31, 2009, 10:42:22 PM »
SSGC after tax profit falls to Rs 65.312 million
KARACHI (October 31, 2009): The after tax profit of Sui Southern Gas Company (SSGC) has declined to Rs 65.312 million in the quarter ended September 30, 2009 as compared to Rs 86.464 million earned in the corresponding period in 2008. The board of directors of the company in its meeting held on Thursday declared that the company's earning per share declined to Re 0.10 in the period under review against Re 0.13 in the same period last year.

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« Reply #14 on: November 02, 2009, 12:50:52 PM »
02-NOV-09 SNGP Sui North Gas Pipe. FINANCIAL RESULT FOR THE FIRST QUARTER ENDED 30/09/2009
02-NOV-09 SNGP Sui North Gas Pipe. PROFIT/LOSS BEFORE TAXATION RS. IN MILLION 808.628
02-NOV-09 SNGP Sui North Gas Pipe. PROFIT/LOSS AFTER TAXATION RS. IN MILLION 518.079
02-NOV-09 SNGP Sui North Gas Pipe. EPS = 0.94

Offline Farzooq

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« Reply #15 on: November 12, 2009, 09:34:28 AM »
Gas Company: SUI NORTHERN GAS PIPELINES LIMITED Analysis of Financial Statements Financial Year 2004- Financial Year 2009
OVERVIEW (November 12 2009): SNGPL is the largest integrated gas company in the country, involved in distribution and transmission of gas in the north of the country. SNGPL was incorporated as a private limited company in 1963. Later, in 1964, it converted into a public limited company.

It is listed on all three stock exchanges of the country. SNGPL's transmission system extends from Sui to Peshawar in NWFP. The company's distribution system comprises of 46,964-km of pipeline, spreading over 831 main towns and adjoining villages.

=========================================================
COMPANY SNAPSHOT
=========================================================
Name of company           Sui Northern Gas Pipelines Ltd.
Nature of Business        Gas Utility
---------------------------------------------------------
Ticker                    SNGPL
---------------------------------------------------------
Gas Sales FY '08          Rs  124,155,033,000
Gas Sales FY '09          Rs  168,933,831,000
Share price (avg.)        Rs  32.10 per share
Market Capitalization     17,543,000,000
=========================================================

SNGPL has now expanded its operations to venture into the business of planning, designing and construction of pipelines, both for itself as well as for other organisations. The main fields supplying gas to SNGPL are Dhodak, Gurguri, Chanda, Pirkoh+Loti, Sui, Zamzama, Qadirpur, Sawan, Block 22 and Northern sources. The company kept its pace consistent throughout the year and provided record number of gas connections to industrial, commercial and domestic consumers, by expanding its distribution and transmission network up to 66,967-km in Punjab, NWFP and Azad Jammu and Kashmir.

===================================================================
Recent performance
===================================================================
(Rupees in Thousands)              FY08          FY09      % change
===================================================================
Gas sales (MMCF)                597,913       584,895        -2.18%
Gas sales                   123,404,537   160,714,737           30%
Net Gas sales               124,155,033   168,933,831           36%
Cost of gas sold            109,107,461   151,337,339           39%
Gross Profit                 15,047,572    17,596,492           17%
Rental & service income         916,351       990,101            8%
Operating expenses           14,134,052    19,710,034           28%
Other operating income        1,446,568     1,210,008          -16%
Operating profit              4,770,056     2,383,422          -50%
Finance cost                    789,247       653,182          -17%
Profit before taxation        3,981,231     1,730,240          -57%
Taxation                      1,484,541       799,704          -46%
Profit after taxation         2,496,690       930,536          -63%
EPS                                4.55          1.69          -63%
===================================================================

SNGPL was able to expand its distribution network by over 7497-km and transmission network by 332-km. A record addition to operating fixed assets of over Rs 24 billion was also made during the year. The gas sales amounted to Rs 161 billion in FY09 (FY08: Rs 123 billion), depicting an increase of 30%. The volume of gas sales has declined by 2.18%, which shows that per unit of sales price has increased. The net sales were also higher at Rs 169 billion (FY08: Rs 124 billion), representing an increase of 36%. In FY08 Rs 0.75 billion were added as the gas development surcharge where as in FY09, Rs 8 billion were added as differential margin.

The cost of gas sold has also increased by 39% during the fiscal year. This was mainly due to disallowance of unaccounted for gas (UFG) losses, which increased from Rs 3,281 million in FY08 to Rs 6,283 million in FY09. These deductions resulted in reduction of EPS by Rs 7.44. Also the increase in disallowance is high because the benchmark of UFG is set much lower at 3.74% compared to 17.5% of last year. The gross profit showed a respectable increase of 17% and amounted to Rs 17.5 billion (FY08: Rs 15 billion). The rental and service income grew by 8% during 2009. The operating expenses cumulatively grew by 28%. The main contributor was the other operating expenses that had increased by 211%, in which exchange losses of the amount Rs 2.8 billion (FY08: Rs 0.62 billion) was the major cause.

The distribution cost and administrative expenses had increased by 27% and 25% respectively. Other operating income declined by 16%. Hence operating profit showed the consequent decline of 50% and amounted to Rs 2.4 billion in FY09 (FY08: Rs 4.8 billion). These figures clearly show that the reason for plunge in the SNGPL performance for the period under consideration is mainly due to shortcomings in operations. The operational costs were higher and operating income was lower. The finance cost exhibited a 17% decline and hence brought a minor relief. Profit after taxation thus stands at Rs 931 million (FY08: Rs 2.5 billion), representing 63% decline. The EPS has also plunged down from Rs 4.55 per share in FY08 to Rs 1.69 per share in FY09.

=========================================================
RATIOS
=========================================================
Profitability             SNGPL          Industry Average
=========================================================
ROA                                     0.76%       0.51%
ROE                                     5.76%       4.21%
Net profit to sales                     0.58%        0.4%
Gross Profit Ratio                     10.95%       7.91%
---------------------------------------------------------
Debt Management           SNGPL          Industry Average
---------------------------------------------------------
Debt to equity                           3.33        6.36
TIE                                      3.65        2.23
---------------------------------------------------------
Liquidity                 SNGPL          Industry Average
---------------------------------------------------------
Current ratio                            0.82        0.92
Quick ratio                              0.77        0.87
---------------------------------------------------------
Efficiency                SNGPL          Industry Average
---------------------------------------------------------
Operating Cycle                            60          84
Inventory turnover                     205.16      129.62
Total asset turnover                     1.31        1.26
Fixed asset turnover                     2.03        2.56
---------------------------------------------------------
Investment                SSNGPL         Industry Average
---------------------------------------------------------
EPS                                      1.69        1.04
Market Value per share                   32.1        24.4
P/ E ratio                              18.99       31.43
Cash Dividend                            3.48        2.36
=========================================================
The figures and ratios of SNGPL compare favourably to the industry average.

COMPARISON OF BALANCE SHEET ITEMS: compared to the industry average, long-term liabilities are 26% higher, total equity is 24.86% higher, total liabilities are 77.8% higher; current assets are 19% lower.

COMPARISON OF INCOME STATEMENT ITEMS: compared to the industry average, gas sales are 15.1% higher, net sales are 21.9% higher, gross profit is 50.7% higher, operating profit is 40.2% higher, profit after taxation is 56.7% higher and finance cost is 288% lower.

PROFITABILITY RATIOS: All the ratios are greater than the industry average indicating good profitability of SNGPL than its competitor SSGC. The ROE ratio had fell considerably to 5.76% but still higher than the industry average; gross profit ratio has also decreased to 10.95%. This is primarily due to the turbulent year FY09 for all sectors due to the rising gas cost and increase in expenses.

DEBT MANAGEMENT RATIO: Debt to equity ratio of 3.33 is almost half as compared to the industry average of 6.36. This shows that the company can comfortably seek leverage for financing needs in the future. However, the TIE ratio of 3.65 is slightly greater than the industry average of 2.23.

LIQUIDITY: The liquidity ratios - current ratio 0.82 and quick ratio 0.77 are both lower than the industry of 0.92 and 0.87 respectively. This is because although the total current assets increased by 24%, the total current liabilities increased by around 78%. The liquidity has slightly worsened compared to the industry.

EFFICIENCY: The operating cycle takes 60 days against the industry average of 84 days. Consequently the turnover ratios are higher than the industry average. This shows that the company has an efficient working capital cycle. The cash is not tied up for long and is collected in a reasonable period. Hence firm will not face liquidity problems as significant as its competitor.

INVESTMENT: Compared to the industry average the company has a higher EPS of Rs 1.69/share as against Rs 1.04/share, market value of Rs 32.10/share as against Rs 24.4/share and offers a dividend of Rs 3.48/share as against Rs 2.36/share. The P/E ratio is 18.99 as against 31.43, which shows that the stock is undervalued. Its market price has potential to increase in the future.

PROFITABILITY: The gas sales amounted to Rs 161 billion in FY09 and have increased by 30.23% on a y-o-y basis due to the expansion of the distribution and transmission network. The company posted net sales turnover of Rs 169 billion - an increase of 36.07% on y-o-y basis. The gas development surcharge was Rs 8.2 billion in FY09 as against Rs 0.75 billion in FY08. The cost of gas sold amounted to Rs 151 billion showing an increase of 38.7% on a y-o-y basis. The gross profit was consequently Rs 17.6 billion and showed growth of 17%. The operating expenses have increased from Rs 13 billion in FY08 to Rs 17 billion in FY09 - an increase of 27%.

Distribution cost makes up the largest chunk of operating expenses. In FY09 distribution cost made up 89.7% of operating expenses. Other operating expenses have increased drastically from Rs 957 million in FY08 to Rs 3 billion in FY09 - an increase of 211%. Other operating income has declined from Rs 1.44 billion in FY08 to Rs 1.21 billion in FY09. Consequently the operating profit has declined from Rs 4.8 billion to Rs 2.4 billion - a decline of 50%. Finance cost has declined by 17% on a y-o-y basis. Profit before taxation stands at Rs 1.7 billion depicting a decline of 56.5% on a y-o-y basis while profit after taxation amounted to Rs 931 million which has shown a decline of 62.7% on a y-o-y basis.

The profitability ratios have declined on the whole. The return on equity has dropped from an all time high of 26.59 in FY06 to 5.76 in FY09. The low ROE in FY09 can be attributed to a massive decline in PAT, ie 62.7% despite a 6% decrease in equity. Despite the increase in sales, the gross profit margin shows has declined from 12.19 in FY08 to 10.95 in FY09 due to rise in the cost of gas. The EBITDA margin has progressively declined from 12.39 in FY04 to 1.59 in FY09. The ROA has declined from 2.56 in FY08 to 0.76 in FY09. The net profit margin has dropped from 2.02 in FY08 to 0.58 in FY09.

LIQUIDITY

The graph shows that liquidity position of SNGPL was rather stable, between FY05 till FY08, but worsened significantly in FY09. The liquidity ratios of the firm have declined, illustrating that the firm may experience problems in financing its short-term obligations given that the net income for the period has also declined. SNGPL is experiencing liquidity risks due to an increase in debtors; increase in dollar value and due to a shortage of funds.

The current ratio has decreased from 1.19 in FY08 to 0.82 in FY09. The current liabilities have increased by 78% while the current assets have increased by 24%. The quick ratio of the firm has declined from 1.09 in FY08 to 0.77 in FY09. The quick assets have increased by 23.36% compared to increase in current liabilities by 78%. The driver of growth in current liabilities was trade and other payables registering an increase of 82% in FY09. To improve liquidity the firm must improve its credit management. The receivables have increased over the time but the firm's payables have increased at a greater rate causing the liquidity trend to decline drastically. The inventory of stock in trade has seen a nominal rise of 49% when seen in absolute terms compared to other assets. Therefore there is not a vast difference between current and quick ratios.

ASSET MANAGEMENT

The sales to equity ratio shows a healthy optimistic trend that has gradually inclined. In the fiscal year under consideration this ratio has seen a slight drop from 7.2 in FY08 to 9.95 in FY09. This can be attributed to the rising gas sales. Gas is a product with inelastic demand. In the given period gas prices have seen hikes. Therefore the increase is likely to be the result of gas prices rather than the gas volumes. Fixed asset turnover has increased due to an increase in gas sales by 30.23% that more than offset the increase in fixed assets by 26%. The total asset turnover has recovered slightly as it increased from 1.26 to 1.31.

The assets have increased by 25.3% while the gas sales have increased by 30%. This signals that company's asset management has improved compared to last year. The analysis of operating cycle gives a clearer idea of the asset management situation. It is clear that the operating cycle became smaller and then increased. The cash management of the company has improved. In FY04 it took 53 days to convert inventory to accounts receivables to cash but it takes 58 days of operating cycle in FY09. The DSO makes up a larger portion of the operating cycle than the inventory turnover period, which has been constant for the past six years now at two days.

As the gas is a product with inelastic demand, the inventory of gas is likely to sell quickly. However, a large portion of the gas sales, is usually purchased by the industrial consumers and the gas stations on credit. The cash recovery takes a long time. There is more potential for the operating cycle to improve.

DEBT MANAGEMENT

The TIE ratio has showed an impressive incline over the past few years till FY08, showing a healthy increase in the operating profit of the company. However, in FY09 the TIE suddenly fell down to 3.65. This was due to the significant 50% decline in EBIT (ie operating profit). The debt to equity ratio, after having declined, picked up since FY07 and now stands at 3.33 in FY09. This means that the company's debt is increasing continuously with respect to its equity. Hence its ownership is diluting as very small assets are provided for equity financing. The debt to asset ratio has remained somewhat constant due to same proportional increases in the amounts of debt and assets.

MARKET VALUE RATIOS

The earnings per share of the company have declined from 4.55 in FY08 to 1.69 in FY09. The market value per share has followed an inverted U-shaped trend with high price per share of Rs 100 in FY06 as against price per share of Rs 32.10 in FY09. The price to earnings ratio has decreased from 9.58 in FY08 to 18.99 in FY09. This is primarily due to an overpowering 63% decline in EPS compared to a 26% decline in prices on a y-o-y basis. The recovery in P/E ratio means that the investors do have restored expectations about the future performance of the stock. This is a sign of recovery in the stock exchange.

INVESTOR EXPECTATIONS

Despite decline in net income the company paid higher dividends this year amounting to Rs 3.48/share. The investors are earning a good return on investment. This is also evident in the dividend yield ratio, which has increased from 6.08 in FY08 to 10.8 in FY09. The dividend payout ratio has declined from 1.30 in FY08 to 2.06 in FY09.

FUTURE OUTLOOK

The future of gas demand and supply conditions in Pakistan remains uncertain. There is considerable confusion, whether gas supply to CNG stations would be curtailed during the 3 months of winter or not. There is a chance that the industrial sector might suffer from gas shortage due to increased demand for natural gas in households during winters. Gas prices are even expected to go up that could increase the demand for the already expensive oil. This seems to be a loss-loss scenario for the government as well.

The gas demand has been increased due to seasonal demand, transportation use and for electricity generation purposes as hydel power generation has been shut down for maintenance. Moreover, the IPI gas pipeline project is not yet finalized due to disputes on deciding tariff between the three member countries. This has put pressure on the existing gas supplies in the country. In Northern areas people are facing gas shortage. The most current project is Project IX (2006-2009) which is being undertaken to absorb additional gas supply from newly discovered gas fields. Currently the execution of the final segment of Project IX is underway and will be completed by end of 2009.

Since SNGPL is an internationally respected pipeline laying entity, the Company has undertaken contracts commissioned by various other organisations in Pakistan and bids for tenders on an international level. Most significantly, the company has submitted a technical bid to the Algerian national oil and gas company SONATRACH for construction of a 502-km long pipeline. SNGPL has planned various projects including Mobile Customer Service Units to enhance the availability of face-to-face service in remote areas. These Units will be out-fitted with new technologies for efficient problem solving and billing procedures.

During FY08-09, 1229-km transmission and distribution lines were commissioned providing gas facility to various localities in Punjab, NWFP and several industrial units. Projects that are near completion include P-IX pipeline project, installation of gas systems for Independent Power Producers (IPPs), and construction of a 41-km transmission pipeline for gas supply to Bhakkar and 40-km loop line for enhancing system capacity in NWFP. Laying of supply mains under Annual Distribution Development Programme FY08-09 for various localities/villages in Punjab and NWFP are also in progress. In order to supply natural gas to Narowal, 28-km pipeline is being laid. These pipelines have 8-inch diameters.

SNGPL, as a contractor, is carrying out construction of 38km (20 inch diameter) line for Engro Fertilizers plant in Sindh, which would be one of the biggest plants of its kind in the world. Construction of 52km gas gathering network in assorted diameters and laying of 104km Fibre Optic cable for M/s MOL Pakistan (Hungarian Company) is also in progress in Karak area for the Manzalai Gas Well gathering system. Construction of 12-km (28-inch diameter) water line for Fatima Fertilizers is being carried out by the Company on contract basis.
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Offline Farzooq

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« Reply #16 on: November 17, 2009, 09:22:25 AM »
SNGPL gets 170 mmcfd more gas from two fields

RECORDER REPORT
ISLAMABAD (November 17 2009): Sui Northern Gas Pipeline Limited (SNGPL) has received 170 mmcfd additional gas from two gasfields, including Manzalai, enabling it to avoid prevailing gas loadshedding at present. During December-February, the SNGPL system faces severe crisis of gas shortage when the demand increases manifold due to rising consumption in the domestic sector from normal load of 250 mmcfd to 750 mmcfd.

The Federal Cabinet had already approved the Gas Load Management Plan 2009-10 to be implemented from November 15 to March 15, 2010. Sources told Business Recorder on Monday that the SNGPL had not yet enforced gas loadshedding plan due to additional gas supply of 170 mmcfd.

They attributed the lower demand to the mild winter so far, and said: "The SNGPL will face gas shortfall up to 750 mmcfd in case of extreme cold or rainy season. In that situation, different sectors will be facing gas loadshedding." Considering a summary on "Gas Load management Plan 2009-10," submitted by the Petroleum Ministry, the Cabinet decided in its special meeting held on November 4 that:

-- Domestic and commercial sectors would continue to get normal gas supply even during winter months without any curtailment.

-- All industrial units would go for two holidays a week on rotational basis in accordance with the pre-defined zones resulting in saving of 120 mmcfd gas for diversion to other zones.

-- The CNG sector will be subject to two gas holidays per week on a rotational basis to save 25 mmcfd gas for diversion to other zones.

-- The fertiliser sector will be encouraged to arrange alternate fuel for stock requirement.

-- SSGCL will divert 38-mmcfd gas to SNGPL for utilisation by three new IPPs - Orient, Saif and Sapphire - or rental power plants.

-- A moratorium on extension of gas to new towns/villages will be imposed till the present backlog is cleared. However, the towns/villages, located in the districts of gas producing wellheads, will be exempted from this moratorium.

When asked about the two holidays a week for industrial sector, the sources said that the SNGPL administration had not received any direction from the Federal government. They said the government would have to make a comprehensive plan after consultation with all trade bodies and chambers. "After finalising the plan, the Petroleum Ministry will forward it to the SNGPL that would enforce it," the sources added. One official in the Petroleum Ministry said that government would start implementing the gas loadshedding plan only in the event of a gas shortfall.

Three fertiliser plants, including Pak Arab, Dawood Hercules and Pak American on SNGPL, would go for annual turn around for 30 days each from the next month, resulting in 104 mmcfd gas saving that would be provided to the export-oriented sectors like textile. The sources said that during the peak winter season, the use of geysers would result in hike in gas demand. The SNGPL has developed a conical steel baffle, which when inserted in the geyser fire tube, would reduce heat losses and improve thermal efficiency from 28 to 60 percent, the sources added.
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Offline Manzoor Khan

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« Reply #17 on: November 20, 2009, 02:19:25 PM »
what is the rate for entry.

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« Reply #18 on: November 20, 2009, 02:38:09 PM »