Transmission of Quarterly Financial Statements for the Period Ended December 31, 2024

Half Yearly Accounts (Un-audited) For the Period Ended December 31, 2024

Corporate Information 2

Directors’ Review 3

Auditors Review 6

Condensed Interim Statement of Financial Position 8

Condensed Interim Statement of Profit or Loss 10

Condensed Interim Statement of Comprehensive Income 11

Condensed Interim Statement of Changes in Equity 12

Condensed Interim Statement of Cash Flows 13

Selected Notes to and Forming Part of the Condensed Interim 14

Financial Statements

Directors’ Review 38

01

Sui Northern Gas Pipelines Limited

Present Board of Directors

BOARD OF DIRECTORS

Mr. Muhammad Ismail Qureshi Chairman

Mr. Amer Tufail Managing Director

Mr. Ahmed Chinoy Director

Mr. Arif Saeed Director

Ms. Faaria Rehman Salahuddin Director

Mr. Jawad Paul Khawaja Director

Mr. Momin Agha Director

Mr. Osman Saifullah Khan Director

Mr. Saadat Ali Khan Director

Mr. Sajjad Azhar Director

Mr. Tariq Iqbal Khan Director

Mr. Usman Ahmed Chaudhry Director

COMMITTEES OF THE BOARD OF DIRECTORS

BOARD AUDIT COMMITTEE

Mr. Tariq Iqbal Khan Chairman

Mr. Ahmed Chinoy Member

Mr. Arif Saeed Member

Mr. Saadat Ali Khan Member

Mr. Usman Ahmed Chaudhry Member

FINANCE, PROCUREMENT & BUSINESS DIVERSIFICATION COMMITTEE

Mr. Arif Saeed Chairman

Mr. Momin Agha Member

Mr. Osman Saifullah Khan Member

Mr. Sajjad Azhar Member

Mr. Tariq Iqbal Khan Member

HUMAN RESOURCE, REMUNERATION & NOMINATION COMMITTEE

Mr. Muhammad Ismail Qureshi Chairman

Mr. Amer Tufail Managing Director

Mr. Ahmed Chinoy Member

Ms. Faaria Rehman Salahuddin Member

Mr. Tariq Iqbal Khan Member

Mr. Usman Ahmed Chaudhry Member

RISK MANAGEMENT & UFG CONTROL COMMITTEE

Mr. Muhammad Ismail Qureshi Chairman

Mr. Arif Saeed Member

Ms. Faaria Rehman Salahuddin Member

Mr. Jawad Paul Khawaja Member

Mr. Osman Saifullah Khan Member

Mr. Saadat Ali Khan Member

Mr. Sajjad Azhar Member

IT / DIGITIZATION COMMITTEE

Mr. Osman Saifullah Khan Chairman Ms. Faaria Rehman Salahuddin Member Mr. Jawad Paul Khawaja Member

CHIEF FINANCIAL OFFICER

Mr. Kamran Akram

SGM CORPORATE AFFAIRS / COMPANY SECRETARY

Mr. Imtiaz Mehmood

AUDITORS

A.F. Ferguson & Co. Chartered Accountants

SHARE REGISTRAR

M/s. CDC Share Registrar Services Limited Mezzanine Floor, South Tower, LSE Plaza 19-Khayaban-e-Aiwan-e-Iqbal,

Lahore-54000.

Tel:[+92-42] 36362061-66

Fax: [+92-42] 36300072

Website: https://www.cdcsrsl.com

LEGAL ADVISOR

M/s. Surridge & Beecheno

REGISTERED OFFICE

Gas House, 21-Kashmir Road,

P.O. Box No. 56, Lahore 54000 PAKISTAN

Tel:[+92-42] 99082000-06

Fax:[+92-42] 99201369

Website: https://www.sngpl.com.pk

02

Sui Northern Gas Pipelines Limited

We are pleased to present the unaudited financial statements of your Company for the period ended December 31, 2024. The Company has been able to earn a profit after tax amounting to Rs. 7,749 million as against a profit of Rs.7,023 million during the corresponding period of last year. The earnings per share for the period under review is Rs.

12.22 as against earnings per share of Rs. 11.07 for the same period last year. The summary of financial results for the period under review is given below:

(Rs. in Million)

The increase in profit for the period is primarily attributed to the increase in the rate of return on average operating assets from 20.64%(Jul-Dec-23) to 21.25%(Jul-Dec-24) by the Regulator. Moreover, the Company's UFG remained well within the approved benchmark, and there was no disallowance calculated during the period.

Applicability of IFRS 14 - Regulatory Deferral Accounts:

The Company had been granted an exemption by the Securities and Exchange Commission of Pakistan (SECP) from the application of IFRS 14 until June 30, 2024. Upon expiry of the above-mentioned exemption, the Company approached SECP for a further extension. However, the SECP communicated that, following the promulgation of the SOE Act, 2023, the authority to grant full or partial exemptions from IFRS application now rests with the Federal Government. Consequently, the Company had taken up the matter with the Ministry of Finance through the Ministry of Energy (Petroleum Division) to seek exemption from IFRS 14. The Ministry of Finance, via communication dated August 6, 2025, advised placing the exemption request before the Cabinet Committee on State Owned Enterprises ('CCoSOEs') in accordance with sub-section (2) of section 3 of the SOE Act, 2023. Accordingly, the Company has formally requested the Ministry of Energy (Petroleum Division) to submit a summary to the CCoSOEs for exemption approval.

As a result of non-application of IFRS 14, auditors have qualified their opinion. The auditors' qualification pertains solely to presentation requirements under IFRS 14, which require separate line-item disclosure in the financial statements. The departure from application of IFRS-14 does not impact the profitability of the Company.

Customer Focus:

Significant enhancements were made during the period to the Company's mobile application, enabling customers to access a range of services remotely and minimizing the need for physical visits. A feedback mechanism on Complaint resolution was strengthened, and dedicated resources are deployed for continuous monitoring and timely rectification of consumer complaints.

03

Sui Northern Gas Pipelines Limited

Human Resources and Organizational Culture:

Recognizing the evolving dynamics of the energy sector, the Board of Directors and management remain committed to fostering a progressive organizational culture and motivating employees through the adoption of HR best practices and timely reward mechanisms. Key initiatives include talent development and retention programs, maintaining compensation at market-competitive levels, aligning job skills with business needs, reinforcing corporate values and updating the HR Manual.

PROJECTS

During the period, your Company has laid 9.25 kms Transmission Lines with diameters ranging from 6” to 24”. In addition to Transmission Lines, 250.27 kms of Distribution mains were laid during the second quarter period ended on December 31, 2024 for improving pressure and supplying gas to new towns which has enhanced customers satisfaction level. Besides, the Company remained engaged in construction of Contract Lines of Makori East-6 (2.5 kms) and Razgir Project (20 kms) for M/s MOL.

ONGOING /FUTURE PROJECTS

1. Shaheed Fahad Ashfaq Project: 18”dia x 230 Km Bannu West Well-DaudKhel Transmission Line

   In order to connect newly discovered Bannu West “Bannu West Well-1 (40-100 MMCFD)” and Wali gas field “Wali Well-1 (25-50 MMCFD)” with SNGPL transmission network, your Company has been in the process of laying 18”dia x 230 km transmission line from Bannu West Well to Daudkhel. The construction activities are in progress. Pipeline laying has been completed, and 130 kms pipeline has already been commissioned.

2. Kot Palak Project

   In order to pick up 45 MMCFD gas from 92 KotPalak-1 gas field of M/s Al-Haj Enterprises Private Limited and further augment the transmission system, following Transmission Pipelines have been planned:

   1. 12”dia x 77 kms Transmission Pipeline from Kot Palak CPF to D.I.Khan

   2. 12”dia x 103 kms Transmission Pipeline from D.I.Khan to Manjuwal, as part of transmission system augmentation.

   3. 18”dia x 84.80 kms Transmission Pipeline from Daudkhel to Dhullian, as part of transmission system augmentation.

   As part of the above project, the uplifting of the old 8”dia x 44.60 km Transmission pipeline and laying of new 18”dia x 44.60 Km Transmission Pipeline from F3 (Zero Point) to Valve Assembly (FV-15) Line is in progress.

3. 16”dia x 3 Km Transmission Pipeline from Chah Tamboli to Sundar Industrial Estate Loopline

   A project for laying of 16”dia x 3 km pipeline from Chah Tamboli to Sundar Industrial Estate Loopline is in progress and the line is ready for commissioning.

   04

   Sui Northern Gas Pipelines Limited

4. 20”dia x 13.60 Km Transmission Pipeline from Existing QV-2 Valve Assembly to Fauji Fertilizer Line, Mirpur Mathelo

   The construction of 20”dia x 13.60 km pipeline from Qadirpur Valve Assembly (QV-2) to Fauji Fertilizer Plant at Mirpur Mathelo is in progress. The line is being laid on 100% cost sharing basis for the supply of 105 MMCFD RLNG to Fauji Fertilizer plant.

5. Contract Lines

8”dia x 2.50 Km Makori East-6 Flow line was commissioned successfully on 25.09.2024 by SNGPL for M/s MOL on contract basis.

Moreover, the construction of following Flow Lines for M/s MOL are in progress:

1. 8”dia x 13 Km Razgir-1 to Tulanj West Well-2 Flow Line

2. 10”dia x 7 Km Tulanj West Well-2 Flow Line to EPF Tulanj Flow Line

Despite the unprecedented economic challenges and financial constraints confronting the energy sector, the performance of your Company has remained resilient, maintaining a consistent stream of profitability. The Board of Directors, management, and employees remain confident that the Company's operational and financial performance will continue to strengthen in the years ahead.

ACKNOWLEDGMENTS

Your Directors wish to place on record their appreciation for the continued support and patronage received from shareholders and its valued consumers. We also wish to acknowledge the dedication and commitment of all the employees who contributed valuable services, to sustain all operations of the Company.

We acknowledge and appreciate the continued guidance and support received from the Government of Pakistan, Ministry of Energy (Petroleum Division) and Oil & Gas Regulatory Authority, (OGRA).

On behalf of the Board

(Amer Tufail)

Managing Director

(Muhammad Ismail Qureshi)

Chairman-BOD

Lahore.

November 1, 2025

05

Sui Northern Gas Pipelines Limited

A'F'FE &GUSONt1C1

We base reviewed the iceimt›nyina eondnnséd lnfierirn s:tuft of poiiilon of SuJ Sottfiem

statements' . Rertegemenfi is résp nsi6le for tin pmparation end juesciita9on of the inteHm fiñneiaJ stat? nos iri.accordaaet wtth écooundng.And reporting stazidazda m applicable io Mr ions-iza firrancia] wgorr!ng. Our respoaa ty is ro ezgruss a uoaotttstoo oo Interim finaocM iatea›eau

'6'e eandurted our cedes in 'nomedame •ith international se=a•n on ant Engagcmmta pro, ’Review of lareri- rine•eial lnfomiseinn Petfomied by the fndependeni Auditor of ihe mtip•. A teriew uf interim finsncial'statemenis oong is of milking fnrguiries, primirtlr of'r•=sm reaPfar flnsnrial

in seq In anaudit conducted in'amordsnee •iitt lotemzti•csl stun&'r& on z dcdconsrquenfiy

in disrk›scd In nok 2.z' t'o the an:ompanying interim £m«nciel sintcnienis, the.Coml:'any, as a gas utllitr

presented as a seqran line Um in 'the nindciucd interim statement or profit or Inc, with z mi,vuiirérit in RpA Blancs’ wire 'revenue trem contracts with ciJitomeis’ as 'tariff

zdjiaatmeni’ end W nor plated the required subi°ial Had the Cg'mPany c'n iplJed with ter

iequieemenc inc comlensed interior steiem••t ofprulil ur lust would have peesentéd:

in x pts subtotal, ’Pmfit/0oss) for the J;rerim before net mnvemeni in regulatory

b. aonovaj td ijie 'tariff e4justme•t’ line'itc'in by en emouni uf Rs ib 6o.i6 i millii›n tfnr

the six-wmnch periu•d en+Jed December 3i, 7 • Rstius,49o.Wj niFioni;

c inclusion ufakarate line item, Set eninnl in rogHaR*y défenai no:ouat Silences'

amounting io ps Who.s6i mlB +nJ (far The siz-month ezJ•nd nnded Deoirm6er 9i, 2• iu io6p zaII1IooJ, presence+4 o ’pzoñt for Otn 9enud”.

pwC A F'FER.GUSCFJ<1CO.

kiim‹ a upaote me iW.xsN• •==mt bUx«o •aonting a in

Ugly. miBMo (Imag go, gong: la 86$ .zmt mihMn), wrmhd have beeo Ltd

air W aaut*d Yes mini s net movement in eeab i•mi: n° ss.is tr° e•••u-

nuiner doerih•4 :» in qmraiog paragi*pt, nothing i» mn<to orir attentii n ttit can ..to 1ni•v•

Oiir epnelusioo N not modified In £his nePecf.

Condensed Interim Statement of Financial Position (Un-audited)

The annexed notes from 1 to 28 form an integral part of these condensed interim financial statements

(Kamran Akram)

Chief Financial Officer

08

Sui Northern Gas Pipelines Limited

Condensed Interim Statement of Financial Position (Un-audited)

Audited June 30, 2024

(Amer Tufail)

Managing Director/CEO

Sui Northern Gas Pipelines Limited

(Muhammad Ismail Qureshi)

09

Chairman

For the Half Year Ended December 31, 2024

The annexed notes from 1 to 28 form an integral part of these condensed interim financial statements.

(Kamran Akram)

Chief Financial Officer

(Amer Tufail)

Managing Director/CEO

(Muhammad Ismail Qureshi)

Chairman

10

Sui Northern Gas Pipelines Limited

The annexed notes from 1 to 28 form an integral part of these condensed interim financial statements.

(Kamran Akram)

Chief Financial Officer

(Amer Tufail)

Managing Director/CEO

(Muhammad Ismail Qureshi)

Chairman

11

Sui Northern Gas Pipelines Limited

for the Six Months Period Ended December 31, 2024

The annexed notes from 1 to 28 form an integral part of these condensed interim financial statements.

(Kamran Akram)

Chief Financial Officer

(Amer Tufail)

Managing Director/CEO

(Muhammad Ismail Qureshi)

Chairman

12

Sui Northern Gas Pipelines Limited

for the Six Months Period Ended December 31, 2024

Revenue Reserves

Share Total share

Capital General Reserve

Dividend Equalization Reserve

Unapprop-riated Profit

Total

holders' equity

( R u p e e s i n t h o u s a n d )

Balance as at July 01,

2023 (audited) 6,342,167 4,127,682 480,000 34,635,746 39,243,428

Transactions with owners in their capacity as owners recognised directly

in equity:

Final dividend for the year

ended June 30, 2022@

45,585,595

Rupees 1.5 per share - - - (951,325) (951,325) (951,325)

Total comprehensive income for the six months ended December 31, 2023:

Profit for the period Other comprehensive income

for the period

- - - 7,023,488 7,023,488 7,023,488

6,342,167 4,127,682 480,000 40,707,909 45,315,591 51,657,758

Balance as at December 31, 2023 (un-audited)

Balance as at July 01,

2024 (Audited) 6,342,167 4,127,682 480,000 53,242,969 57,850,651 64,192,818

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

Final dividend for the year ended June 30, 2023 @

Rupees 4.5 per share

Total comprehensive income for the six months ended December 31, 2024:

Profit for the period Other comprehensive

income for the period

- - - (2,853,975) (2,853,975) (2,853,975)

Balance as at December 31, 2024 (un-audited)

The annexed notes from 1 to 28 form an integral part of these condensed interim financial statements.

(Kamran Akram)

Chief Financial Officer

(Amer Tufail)

Managing Director/CEO

(Muhammad Ismail Qureshi)

Chairman

13

Sui Northern Gas Pipelines Limited

1. THE COMPANY AND ITS OPERATIONS

   1. Sui Northern Gas Pipelines Limited (the 'Company') is a public company limited by shares incorporated in Pakistan on June 17, 1963 under the repealed Companies Act, 1913 (now, the Companies Act, 2017) and its shares are quoted on the Pakistan Stock Exchange Limited. The registered office of the Company is situated at 21 Kashmir Road, Lahore.

      The principal activity of the Company is the purchase, transmission, distribution and supply of natural gas. The Company's pipe coating plant is situated at Uch Sharif, Bahawalpur. The addresses of other regional offices of the Company are as follows:

      Regional Office Geographical Location

      Abbottabad Bahawalpur Faisalabad Gujranwala Sialkot Gujrat Islamabad Rawalpindi

      Lahore (East and West) Multan

      Peshawar Mardan Sahiwal Sargodha Sheikhupura Wah Karak

      Jub Pul, Main Mansehra Road, Abbottabad 6-1-D, Model Town-A, Bahawalpur Sargodha Road, Faisalabad

      M.A. Jinnah Road, Gujranwala

      Al-Hamid plaza, Sublime Chowk, Marala link Road, Malkay Kalan, Sialkot State Life Building, 120 and 121, G.T. Road, Gujrat

      Plot No. 28-30, I-9 Industrial Area, Islamabad

      Al-Mansha Plaza, Opposite LESCO Office, Main G.T. Road, Rawalpindi 21-Industrial Area, Gulberg-III, Lahore

      Piran Ghaib Road, Multan

      Plot No. 33, Sector B-2M, Hayatabad, Peshawar

      Riffat Mehal, Near Mardan Industrial Estate, Main Nowshera Road, Mardan 79-A and 79-C, Canal Colony, Sahiwal

      House No. 15, Muslim Town, Sargodha

      Al-Noor Marriage hall, Faisalabad bypass road, Sheikhupura Gudwal Link Road, Wah Cantt

      Mother plaza, Main Indus Highway, near Jalil chowk, Karak

   2. These condensed interim financial statements are presented in Pak Rupee, which is the Company's functional and presentation currency.

2. BASIS OF PREPARATION

   1. Statement of Compliance

      These condensed interim financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise:

      • International Accounting Standard ('IAS') 34, Interim Financial Reporting, issued by the International Accounting Standards Board ('IASB') as notified under the Companies Act, 2017;

      • Provisions of and directives issued under the Companies Act, 2017; and

      • Provisions of the State-Owned Enterprises (Governance and Operations) Act, 2023 ('the SOE Act') and the State-Owned Enterprises Ownership and Management Policy, 2023 ('the SOE Policy').

      Where provisions of and directives issued under the Companies Act, 2017 differ from the IAS 34, the provisions of and directives issued under the Companies Act, 2017 have been followed.

      14

      Sui Northern Gas Pipelines Limited

      In case requirements of the SOE Act or the SOE Policy differ from the Companies Act, 2017, the provisions of the SOE Act or the SOE Policy shall prevail. Where the requirements of the SOE Act and the SOE Policy differ from IAS 34, the provisions of the SOE Act or the SOE Policy shall prevail to the extent of such difference.

   2. As per Section 25 of the SOE Act, the financial statements of a state-owned enterprise must be prepared in accordance with the International Financial Reporting Standards ('IFRS'). However, if a state-owned enterprise is not following full IFRS at the time the SOE Act comes into effect, the Board of Directors is required to ensure compliance within three years from that date. Since this three-year period will not have expired by June 30, 2025, the Company will prepare its financial statements for the year ending June 30, 2025, in accordance with the accounting and reporting standards as applicable in Pakistan. Accordingly, these condensed interim financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan.

   3. These condensed interim financial statements are un-audited and are being submitted to the members as required by section 237 of the Companies Act, 2017 (the 'Act').

      These condensed interim financial statements do not include all of the information required for annual financial statements and should be read in conjunction with the annual audited financial statements as at and for the year ended June 30, 2024. Selected explanatory notes are included to explain events and transactions that are significant to and understanding of the changes in the Company’s financial position and performance since the last annual audited financial statements.

3. Material accounting policies

   1. The accounting policies and the methods of computation adopted in the preparation of these condensed interim financial statements are the same as those applied in the preparation of preceding annual published financial statements of the Company for the year ended June 30, 2024, except for the estimation of income tax (see note 3.5).

      In preparing the previously published annual financial statements of the Company for the year ended June 30, 2024, the Company applied two changes to its accounting policies. These accounting policy changes had not been applied in the preparation of the corresponding condensed interim financial statements for the six-month period ended December 31, 2023. As a result, the application of these revised accounting policies in the condensed interim financial statements has led to the following restatements. The nature of the changes to the accounting policies is disclosed in the preceding annual published financial statements.

      1. Application guidance on accounting for minimum and final taxes

         The effects of change in accounting policy on the condensed interim statement of profit or loss are as follows:

         Had there been no change in accounting policy

         Impact of change in accounting policy

         After incorporating effects of change in accounting policy

         (Rupees in thousand)

For the six-month period ended December 31,

2023 - unaudited

Minimum tax differential (Levy) Profit before income tax Income tax

-12,948,775

5,925,287

1,299,469

(1,299,469)

(1,299,469)

1,299,469

11,649,306

4,625,818

15

Sui Northern Gas Pipelines Limited

Had there been no change in accounting policy

Impact of change in accounting policy

After incorporating effects of change in accounting policy

For the three-month period ended December 31,

2023 - unaudited

(Rupees in thousand)

Minimum tax differential (Levy) Profit before income tax Income tax

-6,873,314

3,555,462

680,531

(680,531)

(680,531)

680,531

6,192,783

2,874,931

There has been no effect on the condensed interim statement of financial position, the condensed interim statement of comprehensive income, the condensed interim statement of cash flows, the condensed interim statement of changes in equity and earnings per share as a result of this change.

1. Change in accounting policy for Late Payment Surcharge (LPS) expense

   The effects of change in accounting policy on the condensed interim statement of profit or loss are as follows:

   Had there been no change in accounting policy

   Impact of change in accounting policy

   After incorporating effects of change in accounting policy

   For the six-month period ended December 31,

   2024 - unaudited

   (Rupees in thousand)

   Tariff adjustment Finance cost

   For the six-month period ended December 31,

   2023 - unaudited

   58,851,536

   91,581,775

   (74,411,797)

   (74,411,797)

   (15,560,261)

   17,169,978

   Tariff adjustment	174,519,421	(68,028,717)	106,490,704
   Finance cost	85,916,012	(68,028,717)	17,887,295
   For the three-month period

   ended December 31,

   2024 - unaudited

   Tariff adjustment Finance cost

   For the three-month period ended December 31,

   2023 - unaudited

   46,718,810

   44,597,970

   (37,205,898)

   (37,205,898)

   9,512,912

   7,392,072

   Tariff adjustment	103,585,071	(34,607,864)	68,977,207
   Finance cost	43,312,666	(34,607,864)	8,704,802

   16

   Sui Northern Gas Pipelines Limited

   There has been no effect on the condensed interim statement of financial position, the condensed interim statement of comprehensive income, the condensed interim statement of cash flows, the condensed interim statement of changes in equity and earnings per share as a result of this change.

1. Standards, amendments to published standards and interpretations that are effective in the current period

   Certain standards, amendments and interpretations to International Financial Reporting Standards (IFRS) are effective for accounting period beginning on July 1, 2024, but are considered not to be relevant or to have any significant effect on the Company’s operations (although they may affect the accounting for future transactions and events) and are, therefore, not detailed in these condensed interim financial statements, except for the following:

   Applicability of IFRS 14 - Regulatory Deferral Accounts

   IFRS 14 ‘Regulatory Deferral Accounts’ is effective for annual periods beginning on or after July 1, 2019. It is intended to encourage rate-regulated entities to adopt IFRS while bridging the gap with similar entities that already apply IFRS but do not recognize regulatory deferral accounts. This is achieved by requiring separate presentation of the regulatory deferral account balances (and movements in these balances) in the statement of financial position, statement of profit or loss, and statement of comprehensive income.

   The Securities and Exchange Commission of Pakistan (SECP), vide its letter No. SMD/PRDD/Comp/(4)/2021/146 dated November 5, 2024, granted the Company an exemption from the application of IFRS 14 up to the financial year ended June 30, 2024.

   Upon expiry of the above-mentioned exemption, the Company approached SECP for a further extension. However, the SECP communicated that, following the promulgation of the SOE Act, 2023, the authority to grant full or partial exemptions from IFRS application now rests with the Federal Government. Consequently, the Company has taken up the matter with the Ministry of Finance through the Ministry of Energy (Petroleum Division) to seek exemption from IFRS 14.

   The Ministry of Finance, via communication dated August 6, 2025, advised placing the exemption request before the Cabinet Committee on State Owned Enterprises ('CCoSOEs') in accordance with sub-section (2) of section 3 of the SOE Act, 2023. Accordingly, the Company has formally requested the Ministry of Energy (Petroleum Division) to submit a summary to the CCoSOEs for exemption approval.

   The matter is currently under consideration by the Ministry of Energy (Petroleum Division). Despite the absence of an extension, the Company has not complied with the presentation requirements of IFRS 14. The Company, as a gas utility engaged in rate-regulated activities, has recognized Regulatory Deferral Account (RDA) balances in accordance with IFRS 14 and presents such balances as a ‘Tariff adjustment’ in ‘Other receivables’. There is no impact on the recognition and measurement of these transactions under IFRS 14. Had the Company applied IFRS 14, the impact on the presentation of condensed interim financial statements would have been as follows:

   17

   Sui Northern Gas Pipelines Limited

   Six-months period ended

   Un-audited Un-audited

   December 31, 2024

   December 31, 2023

   (Rupees in thousand)

Effect on condensed interim statement of profit or loss

(Decrease) / Increase in:

Tariff adjustment

Net movement in regulatory deferral account balances

Profit/(loss) for the period before net movement in regulatory deferral account balance, would have amounted to

Profit for the period and net movements in regulatory deferral account balance, would have amounted to

Earnings / (loss) per share

Basic and diluted EPS (excluding net movement in RDA) Basic and diluted EPS (including net movement in RDA)

15,560,261

(15,560,261)

23,309,715

7,749,454

Rupees

36.75

12.22

(106,490,704)

106,490,704

(99,467,216)

7,023,488

Rupees

(156.83)

11.07

Un-audited Audited

December 31, 2024

June 30, 2024

Effect on condensed interim statement of financial position

(Decrease) / Increase in:

Other receivables' as part of total assets

Regulatory deferral account balance' after sub-total of

(849,836,993)

(865,397,254)

There would have been no effect on the condensed interim statement of comprehensive income, the condensed interim statement of cash flows and the condensed interim statement of changes in equity.

1. Standards, amendments and interpretations to existing standards that are not yet effective and have not been early adopted by the Company

   There are certain standards, amendments to the accounting standards and interpretations that are mandatory for the Company's accounting periods beginning on or after July 01, 2025 but are considered not to be relevant or to have any significant effect on the Company's operations and are, therefore, not detailed in these condensed interim financial statements.

2. Accounting estimates

   The preparation of condensed interim financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.

   In preparing these condensed interim financial statements, the significant judgments made by management in applying accounting policies and key sources of estimation were the same as those that were applied to the annual financial statements of the Company for the year ended June 30, 2024, with the exception of change in estimate that is required in determining the provision for income taxes as referred to in note 3.5.

   18

   Sui Northern Gas Pipelines Limited

3. Taxation

Income tax expense is recognized in each interim period based on best estimate of the weighted average annual effective income tax rate expected for the full financial year. Amounts accrued for income tax expense in one interim period may have to be adjusted in a subsequent interim period of that financial year if the estimate of the annual income tax rate changes. Where different income tax rates apply to different categories of income, a separate rate is applied to each category of pretax income.

1. The reconciliation of the carrying amount is as follows:

   Opening balance	29,468,955	26,089,089
   Disbursements during the period/year	-	10,000,000
   Repayments during the period/year	(3,310,043)	(6,620,134)
   Closing balance	26,158,912	29,468,955
   Current portion shown under current liabilities	(6,818,583)	(6,472,250)
   	19,340,329	22,996,705

   1. Under the terms of the major borrowing facilities, the Company is required to comply with certain financial covenants in respect of the loans. The Company has complied with these covenants throughout the period / year.

19

Sui Northern Gas Pipelines Limited

5.1

These loans carry effective mark-up at variable rates which ranges from 6.55% to 13.33% (year ended June 30, 2024: 6.55% to 14.10%) per annum.

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Sui Northern Gas Pipelines Limited

Un-audited December 31, 2024

Note

Audited June 30, 2024

7.1

7.2

Included in this is an amount of Rs 334,638.096 million (June 30, 2024: Rs 311,441.564 million) due to Pakistan State Oil Company Limited (PSO) against Liquefied Natural Gas (LNG) supplied by PSO. The agreement for the supply of LNG has not yet been finalized and is currently under negotiation. Any additional liability or adjustment that may arise will be recorded upon the finalization of the agreement.

The Honourable Islamabad High Court vide its decision dated January 31, 2013, declared Gas Infrastructure Development Cess (GIDC) Act, 2011 as ultra vires to the Constitution and directed the Company to adjust the amount already received on this account in the future bills of the petitioners. However, the Honourable Islamabad High Court vide its decision dated March 18, 2013, directed that neither the appellant shall recover the disputed amount from the respondents, nor the amount which has become payable to the respondents on the basis of impugned judgment shall be paid back to the respondents.

An order on the subject matter was also passed by the Peshawar High Court vide its judgment dated June 13, 2013, whereby the Court declared the GIDC Act, 2011 as ultra vires to the Constitution. An appeal was filed in the Supreme Court of Pakistan, which by its order dated December 30, 2013 suspended the judgment of Peshawar High Court. On December 31, 2013, the Oil and Gas Regulatory Authority (OGRA) issued a notification directing levy of GIDC at revised rates.

In September 2014, a GIDC Ordinance was issued by President of Pakistan, pursuant to which, on directions of the OGRA, the Company charged GIDC from its consumers with effect from September 2014. The Ordinance was superseded by GIDC Act 2015 passed by Parliament of Pakistan. The Act ratified the preceding GIDC Act, 2011 and GIDC Ordinance, 2014 and its provisions. However, a special committee has been constituted by the Parliament to decide on previous arrears of GIDC due from customers and to make recommendations for removal of any anomalies in the GIDC Act. Based on the report of the sub-committee of the special committee requisite amendment in GIDC Act, 2015 had already been laid in the Senate through GIDC Amendment Bill and the same was referred to the Senate Standing Committee on Energy. However, a number of consumers of the Company contested and have obtained stay order from various courts against recovery of GIDC. Later, certain amendments were introduced in GIDC Act, 2015 through GIDC (Amendment) Act, 2018, which inter alia include change in effective date for applicability of mark-up on delayed payments of GIDC and a settlement option for CNG consumers for GIDC payable pertaining to the period January 1, 2012 to May 21, 2015, subject to agreement with the Company.

During the year ended June 30, 2021, the Honourable Supreme Court of Pakistan has ordered the recovery of previous years GIDC in 24 monthly instalments and till the recovery of outstanding GIDC no further GIDC will be charged / recovered from the consumers.

Furthermore, principal amount of GIDC amounting to Rs 133,317.852 million (June 30, 2024: Rs 133,476.809 million) is recoverable from consumers and payable to Government of Pakistan. These financial statements do not reflect the said amounts since the provisions of the GIDC Act require the Company to pay GIDC as and when the same is collected from consumers. Furthermore, some consumers have obtained stay orders against recovery of the same and consequently in view of the legal advisors of the Company, the Company is not liable to pay such amounts until the same are recovered. Both the principal amount and sales tax on GIDC shall be paid as and when these balances are collected from the consumers.

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Sui Northern Gas Pipelines Limited

9.1

The total limit of various financing facilities available from banks against short-term running finance facilities aggregate to Rs 178,525 million (June 30, 2024: Rs 158,875 million) out of which the Company has utilized Rs 141,139.369 million (June 30, 2024: Rs 140,209.138 million). This amount includes financing facilities utilized under the Islamic mode, which amount to Rs 63,375 million (June 30, 2024: Rs 53,594 million). Additionally, these facilities include financing utilized in the money market amounting to Rs 22,000 million (June 30, 2024: Rs 10,000 million). The applicable markup rates during the period range from one to three months KIBOR plus 04 basis points to minus 401 basis points (June 30, 2024: one to three months KIBOR plus 20 basis points to minus 18 basis points) per annum on the outstanding balance. These facilities are secured by a first pari passu/ranking charge over the current assets of the Company, amounting to Rs 171,368 million (June 30, 2024: Rs 147,169 million), and are also secured by a sovereign guarantee from the Government of Pakistan to the extent of Rs 50,000 million (June 30, 2024: Rs 50,000 million). Markup is payable on a quarterly basis, with interest rate charged during the period ranging from 8.75% to 21.99% (year ended June 30, 2024: 21.14% to 22.96%) per annum.

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Sui Northern Gas Pipelines Limited

1. CONTINGENCIES AND COMMITMENTS

   1. Contingencies

      There is no significant change in contingencies from the preceding annual audited financial statements of the Company for the year ended June 30, 2024, except for the following:

      1. The Sales Tax Authorities raised a demand of Rs 9,020.411 million through an order dated December 12, 2023, on account of alleged concealment of sales for the period from July 2017 to June 2018. Being aggrieved, the Company filed an appeal with the Commissioner Inland Revenue (Appeals) [CIR(A)], who remanded the case for fresh verification of facts. Subsequent to the period, the Deputy Commissioner Inland Revenue (DCIR), through an order dated, June 29, 2025, confirmed the demand. Being aggrieved, the Company has filed an application before the Federal Board of Revenue (FBR) for the constitution of an Alternative Dispute Resolution Committee (ADRC).

         No provision has been made in these condensed interim financial statements, as the Company, based on the opinion of its legal counsel, remains confident of a favourable outcome.

      2. With reference to notes 18.1 (b), (c), and (e) of the annual audited financial statements of the Company for the year ended June 30, 2024, the Alternative Dispute Resolution Committee (ADRC), subsequent to the reporting period, through an order dated May 29, 2025, decided several matters in the Company’s favor. These matters relate to the disallowance of consumer contribution, provision for post-retirement benefits, and foreign exchange loss, resulting in a tax benefit of Rs 3,513.300 million. Conversely, the ADRC ruled against the Company on issues concerning the disallowance of interest on gas sales arrears, tax paid at the import stage, and the taxability of interest income on staff loans. The combined tax impact of these unfavorable decisions amounts to Rs 384.500 million, and the Company has provided for these amounts in the condensed interim financial statements.

         Regarding the cost equalization demand amounting to Rs 31,814.300 million, the ADRC referred this matter to a higher appellate authority. Consequently, the Company filed an appeal before the Lahore High Court (LHC) on June 27, 2025, which is currently pending adjudication. No provision has been recorded in respect of this demand, as management, based on advice from its tax consultant, expects a favorable outcome.

      3. With reference to note 18.1 (f) of the annual audited financial statements of the Company for the year ended June 30, 2024, a tax demand of Rs 921.492 million has been confirmed by DCIR, through an assessment order dated, June 29, 2025. The Company, being aggrieved by the decision, has filed an application before the Federal Board of Revenue (FBR) for the constitution of the Alternative Dispute Resolution Committee (ADRC). No provision has been made in these condensed interim financial statements, as the Company, based on the opinion of its legal counsel, remains confident of a favorable outcome.

      4. With reference to note 18.1 (n) of the annual audited financial statements of the Company for the year ended June 30, 2024, the Company withdrew the case from the Appellate Tribunal Inland Revenue (ATIR) and filed an application, on October 17, 2025, with the FBR for the constitution of the ADRC. No provision has been made in these condensed interim financial statements, as the Company, based on the opinion of its legal counsel, remains confident of a favorable outcome.

23

Sui Northern Gas Pipelines Limited

24

Sui Northern Gas Pipelines Limited

12.1 This represents gas purchased by the Company that is yet to be delivered by Engro Elengy Terminal (Private) Limited ('EETL') and PGP Consortium Limited.

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13.1

Included in trade debts are amounts receivable from government-owned power generation companies, independent power producers, and Sui Southern Gas Company Limited (SSGCL), totalling Rs 58,521.541 million (2024: Rs 117,782.889 million), along with interest of Rs 72,256.696 million (2024: Rs 68,296.668 million) due to delayed payments.

Trade and other payables, as referred to in note 7, include an amount of Rs 1,028,496.468 million (2024: Rs 1,034,180.565 million) due to Pakistan Petroleum Limited, SSGCL, Oil and Gas Development Company Limited, Pakistan State Oil Company Limited, Pakistan LNG Limited, and Government Holdings (Private) Limited against gas purchases along with interest accrued on delayed payments of Rs 24,841.653 million (2024: Rs 24,841.653 million) and interest on delayed payments of the Gas Development Surcharge amounting to Rs 4,101.732 million (2024: Rs 4,101.732 million) payable to the Government of Pakistan, as referred to in note 8.

OGRA while acknowledged the liabilities in respect of interest payable to gas creditors in its various determinations but has not included in the determined shortfall till the eventual payment or settlement of circular debt by the Government of Pakistan. This unpaid interest of Rs 438,473.756 million (2024: Rs 356,534.960 million) payable to government-owned and other entities has not been recognized in these financial statements. The settlement of both principal and interest on delayed payments is contingent upon the resolution of inter-corporate circular debt by the Government of Pakistan. Furthermore, the recoverability of amounts totalling Rs 496,672.920 million (2024: Rs 530,702.747 million) and Rs 353,164.073 million (2024: Rs 334,694.507

million), as referred to in note 14, depends on settlements made by the Government of Pakistan, directly or indirectly, which may include increases in future gas prices, subsidies, or alternate mechanisms.

This includes an amount as mentioned below, consisting of various expenses which have either been deferred or disallowed by the OGRA on various grounds, however, the Company has recognized tariff adjustment on such deferments / disallowances in these financial statements as the Company believes that the OGRA in its various determinations in the past years has consistently allowed such expenses and or pended such expenses till its resolution by Federal Government. Accordingly, the Company has filed a review appeal against the Final Revenue Requirements (FRR) decision by the OGRA and is confident of favourable outcome. Detailed break up of the deferred and / or disallowed (income)/expenses is as follows:

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Sui Northern Gas Pipelines Limited

1. This represents the depreciation net of ROA inadvertently disallowed by the OGRA, against which the Company has filed a review appeal and is confident of a favourable outcome.

2. This represents the impact of super tax on the Rate of Return. The Company has recognized its impact and will address the matter with OGRA, following the precedent set by OGRA in its decision for the Motion for Review of FRR 2021-22. Accordingly, the Company has filed a review appeal against the Final Revenue Requirements (FRR) decision by OGRA and is confident of a favourable outcome.

3. This represents the cost of gas sold inadvertently excess allowed by the OGRA, which has been offered back by the Company in the Motion for Review of FRR 2023–2024. As of the reporting date, OGRA’s decision is awaited.

4. This represents the gas internally consumed inadvertently disallowed by the OGRA, against which the Company has filed a review appeal and is confident of a favourable outcome.

1. The balance of RLNG tariff adjustment represents the aggregate difference between the margin earned by the Company from the purchase and sale of RLNG based on the notified rates and the RLNG margin guaranteed to the Company till December 31, 2024. The settlement of this amount is expected to materialize in the shape of adjustment to future sale price of RLNG by OGRA.

   The balance represents the difference of average cost of RLNG and the average sale price of system gas of the diverted RLNG volumes to system gas consumers. During the period, 18,043,424 MMBTUs of RLNG were diverted and sold as system gas. The tariff adjustment receivable resulting from RLNG sold as system gas will be adjusted upon directional changes in tariff adjustments in future periods to be determined by the

   25.

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   Sui Northern Gas Pipelines Limited

   OGRA. Since inception, Federal Government has released subsidy amounting to Rs 116,057.910 million till December 31, 2024.

   This includes an amount as mentioned below, consisting of various expenses which have either been deferred or disallowed by the OGRA on various grounds, however, the Company has recognized tariff adjustment on such deferments / disallowances in these financial statements. The Company has filed a review appeal against the Final Revenue Requirements (FRR) decision by the OGRA and is confident of favourable outcome. Detailed break up of the deferred and / or disallowed expenses is as follows:

   Note Take or pay adjustment relating to prior years 14.2.1.1 Finance cost on encashment of security LPS income take or pay adjustment Operating cost 14.2.1.2	Un-audited December 31, 2024	Audited June 30, 2024
   	(Rupees in thousand)
   	14,847,602 - -245,000	14,847,602 5,056,909 (6,950,945) 245,000
   	15,092,602	13,198,566

   1. This represents the take-or-pay adjustment of prior years for the diversion of RLNG to domestic sector consumers. This amount has not been disallowed by OGRA; instead, it has been pended until the conclusion of matters pending with the Honourable Lahore High Court for enforcement and recovery of Awards under the Recognition and Enforcement Act 2017. It also includes an amount of Rs 1,079.490 million pertaining to Take or pay adjustment of prior years for diversion of RLNG to domestic sector consumers.

   2. This represents the operating cost incurred by the Company in respect of take-or-pay cases with Government-owned Power Producers (GPPs). This amount has not been disallowed by OGRA; instead, it has been pended until the conclusion of matters pending with the Honourable Lahore High Court for enforcement and recovery of Awards under the Recognition and Enforcement Act 2017.

28

Sui Northern Gas Pipelines Limited