Financial results for the 2nd quarter accounts for the period ended december 31, 2025

CA/PSX/1949 Thru: PUCARS / CourierFebruary 27, 2026

Dear Sir,

This is to inform you that the Board of Directors of our Company in their meeting held on February 27, 2026 at 10:30 a.m. at Lahore, recommended the following: -

1. Cash Dividend: NIL
2. Bonus Shares: NIL
3. Right Shares: NIL
4. Any Other Entitlement / Corporate Action: NIL
5. Any Other Price-Sensitive Information: NIL

   The financial results of the Company for the 2ndQuarter Accounts for the period ended December 31, 2025 along with qualified conclusion of the auditors are annexed, herewith, as follows:

   1. Statement of Profit / Loss for the period ended December 31, 2025 along with appropriations, Earning / (Loss) Per Share and comparative figures of immediately preceding corresponding period (Annex-A);

   2. Statement of Financial Position as at December 31, 2025 (Annex-B);

   3. Statement of Changes in Equity for the period ended December 31, 2025 (Annex-C); and

   4. Statement of Cash Flows for the period ended December 31, 2025 (Annex-D); Further, the Auditors in their report to the members have stated as under:

      "We draw attention to the note 13.1 to the accompanying interim financial statements which explains that the settlement of circular debt, including tariff adjustment is dependent upon the resolution of inter corporate balances by the Government of Pakistan, and increase in gas prices or subsidy by the Government of Pakistan to the Company.

      Our opinion is not modified in respect of above matter."

      The Quarterly Report of the Company for the period ended December 31, 2025 will be transmitted through PUCARS separately, within the specified time.

      Thanks and regards.

      Yours sincerely,

      SUI NORTHERN GAS PIPELINES LIMITED
      
      

      Encls: As above.

      (IMTIAZ MEHMOOD)

      SGM (Corporate Affairs) / Company Secretary

      
      
      

      SUI NORTHERN GAS PIPELINES LIMITED

      CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (UN-AUDITED)

      FOR THE THREE-MONTH AND SIX-MONTH PERIODS ENDED DECEMBER 31, 2025

      Annex-A

      Three-month period ended Six-month period ended

      December 31,		December 31,	December 31,	December 31,
      2025		2024	2025	2024
      Rupees in thousand Rupees in thousand
      Revenue from contracts with customers - gas sales	291,724,386	322,042,351	661,190,414	713,608,154
      Tariff adjustment	13,184,948	14,492,203	(37,681,288)	(15,560,261)
      Revenue and tariffadjustment	304,909,334	336,534,554	623,508,426	698,047,893
      Less: Cost of gas sales	289,133,604	317,690,448	596,705,005	672,079,096
      Gross profit	15,775,730	18,844,106	26,803,421	25,968,797
      Other income	8,836,682	5,767,746	16,856,640	18,112,740
      Operating income net of cost of gas sales	24,612,412	24,611,852	43,660,061	44,081,537
      Operating expenses Selling costs	2,786,007	2,698,839	6,214,153	5,628,208
      Administrative expenses	4,228,632	3,791,379	6,955,187	5,942,493
      Other expenses	544,002	391,399	875,819	718,901
      Net impairment loss on financial assets	999,085	2,963,488	819,273	1,281,499
      	8,557,726	9,845,105	14,864,432	13,571,101
      Operating profit	16,054,686	14,766,747	28,795,629	30,510,436
      Finance cost	6,442,594	7,392,072	12,982,133	17,169,978
      Profit before income tax	9,612,092	7,374,675	15,813,496	13,340,458
      Income tax	5,890,193	2,907,851	8,645,603	5,591,004
      Profit for the period	3,721,899	4,466,824	7,167,893	7,749,454
      Earnings per share - basic and diluted (in Rupees)			11.30	12.22

      
      
      

      Annex A

      The Auditors M/s A.F Ferguson & Co. Chartered Accountants have expressed a qualified conclusion in their "Report on Review oflnterim Financial Statements to the Members" due to non-compliance with presentation requirements of IFRS 14 following the expiry of SECP's exemption on June 30,

      2024.

      "Quote"

      As disclosed in note 2.5 to the accompanying interim financial statements, the Company, as a gas utility engaged in rate-regulated activities, has recognized Regulatory Deferral Account (RDA) balances in accordance with International Financial Reporting Standard (IFRS) 14 'Regulatory Deferral Accounts'. However, the Company has not complied with the presentation requirements ofIFRS 14, as detailed below. These departures do not impact the retained earnings ofthe Company.

      1. IFRS 14 requires that the 'net movement in Regulatory Deferral Account balances' be presented as a separate line item in the condensed interim statement of profit or loss, with a subtotal for profit or loss excluding such movements. The Company has instead added the 'net movement in RDA balances with revenue from contracts with customers' as 'Tariff adjustment' and has not presented the required subtotal. Had the Company complied with the requirement, the condensed interim statement ofprofit or loss would have presented:

         1. A separate subtotal Profit for the period before net movement in regulatory deferral account balances' amounting to Rs 44,849.881 million (for the six-month period ended December 31, 2024: Rs 23,309.715 million);

         2. Removal of the 'Tariff adjustment' line item by an amount ofRs 37,681.988 million (for the six-month period ended December 31, 2024: Rs 15,560.261 million);

         3. Inclusion of a separate line item, Net movement in regulatory deferral account balances' amounting to Rs (37,681.988 million) (for the six-month period ended December 31, 2024: Rs (15,560.261 million)], presented after 'profit for the period'.

            'Profit for the period and net movement in RDA balances and profit for the period' as per accompanying condensed interim financial statements would have remained the same.

      2. IFRS 14 requires that Regulatory Deferral Account assets and liabilities be presented separately from other assets and liabilities. The Company has classified RDA balances within 'Other receivables' without separate line-item presentation. Had the requirement been followed, a separate line item, 'Regulatory deferral account balances' amounting to Rs 903,945.222 million (June 30, 2025: Rs 941,627.211 million), would have been presented after the subtotal of total assets, with a corresponding decrease in 'Other receivables', classified as a current asset and included in total assets.

      3. IFRS 14 mandates separate presentation of basic and diluted Earnings Per Share (EPS) calculated by excluding the net movement in RDA balances. The Company has not presented this EPS in the condensed interim statement of profit or loss. Had the requirement been followed, EPS would have been presented as:

Basic and diluted EPS (excluding net movement in RDA balances): Rs 70.72 (for the six-month period ended December 31, 2024: Rs 36.75)

Basic and diluted EPS (including net movement in RDA balances): Rs 11.30 (for the six-month period ended December 31, 2024: Rs 12.22)

llPage

In the corresponding period, the Company also did not comply with the aforementioned presentation requirements of IFRS 14, which caused us to qualify our review report on the interim financial statements for that period.

"Unquote"

Company considers that the qualification is limited to presentation aspects and have no impact on Profit for the period and net movement in 'Regulatory Deferral Account balances' and 'profit for the period' as per annexed condensed interim financial statements. Company's exemption renewal request is under consideration with the Cabinet Committee on State-Owned Enterprises (CCoSOEs) to which a summary has been submitted by Ministry of Energy (Petroleum Division).

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21Page

SUI NORTHERN GAS PIPEMNES LIMPI'ED

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 3• *s IUN-AUDITED)

Annex-B

Un-audited Audited

2O^5

Junego,zozs

December

2025

*' JURe 3O, 2O25

EQUTTY AND LIABILITIES

Shara capital andreserves

Share capital Revenue reserves Total equity

64,3 3›943

7°› z#6,11O

ASSETS

Non-current assets Property, plant and equipment Intangible assets

Right-of-use assets Deferred taxation Long term loans Employee benefits

Long term deposits and prepayments

39 ›74 z$6O

Long term financing from financial institutions - secured Long term financing - unsecured

Lease liabilities Security deposits Deferred grant Contract liabilities

Employee benefit obligations

Current liabili0es

Trade and other payables Current portion of:

Long term financing from financial institutions - secured Long term financing - unsecured

Lease liabilities Deferred grant Contract liabilities

Provision for taxation Unclaimed dividend

Interest / mark-up accrued on loans and other payables Short term borrowings from financial institutions - secured

COWNNCRNCIESANDCOMMEM4ENTS

Current aasete

Stores and spare parts Stock-in-trade

Trade debts

Loans and advances

Trade deposits and short term prepayments Accrued interest

Other receivables

Contract assets

Sales tax recoverable Cash and bank balances

6 8 o 8 c,68z,6q6,oe8

SUI NORTHERN GAS PIPELINES LIMITED

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)

FOR THE SIP-MOHTH PERIOD ENDED DECEMBER 3£ 2O25

Annex-C

(Rupeesin thousand)

Balance as at July i, eoz (Audited)

Transactions with owners in their capacity as owners recognised directly inequity:

- Final dividend for the year ended June 3o, z >3 H Rupees 4-5 per share

Total comprehensive income for the six-month period ended December 3 • *4

Profit for the period

*.34*•* 7

48o,ooo

53•*4*.969

(z,853›975)

7•749›4S4

57,85o,6s

(0,853.975)

7•749›4S4

64,1g2,8i8

*• 53.975)

7•749 454

Other comprehensive income for the period

Balance as at December 3i, zoo (Un-audited) Balance as at July i, zoz5 (Audited)

Transactions with owners in their capacity as owners recognised directly in equity:

- Final dividend for the year ended June 3o, zozk @_ Rupees 3 per share

Total comprehensive income for the six-month period ended December 3 . zoz5

Profit for the period

4,127›*

Other comprehensive income for the period

4›**7›68e

7•749›454

6, 2,167

4›8*7›68z

48OsOOO

6g,O88,2gg

5q,696,z61

69,569,i86 75›9** 353

(1,902,650)

7›749•4S4

(1,go2,65 )

7›749.454

(i,goe,65 )

7›+87.893

7,i67,893

7,167, 93

7›t67› 93

Balance as at December 3i, zoz5 (Un-audited)

4 O,OOO

CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED) FOR THE SIX-MONTH PERIOD ENDED DECEMBER Ayr, aoa5

Azuzez-D

CASH FLOWS FROM OPERATING ACTIVITIES

Cash generated from operations Finance cost paid

Payments oflease liabilities - interest Income tax paid

Employee benefits obligations / contributions paid Increase in security deposits

Receipts against government grants and consumer contributions Decrease in long term loans

Six-month period ended December 3i, December a•.

* *5 * 4

(Rupees in thousand)

49,107.236

(i8,854,l 1)

(l,755›>54)

(7›534›7l5)

1 5 .789)

5›37 ›7 6

757.221

127.669

Increase in long term deposits and prepayments (45.395)

Net cash inflow from operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

(20,8s ,385)

(49.8g$) 35›83

5 ›322

1> 3 4›126)

Payments for property, plant and equipment Payments for intangible assets

Proceeds from disposal of property, plant and equipment Return onbank deposits

Net cash outflow from investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

2{j›322›4 l

7›3 ›

(3› 5 ›377)

(1,63 s63)

;jz,ooo,ooo

(i61,252)

(3 3* › 43)

(1,542,199)

(14 4 )

26,4°O,OOO

£+›794› >) (2,835614)

* ›*43›4*

9,109,257

£*43›4 *337) (112›464.5 1)

£+*3›*44›9**) (1O3.355 334)