Sui Northern Gas Pipelines LimitedPSX: SNGP

Transmission of Quarterly Financial Statements for the Period Ended March 31, 2025

Nov 5, 2025 at 9:36 AM UTC · Issued by Sui Northern Gas Pipelines Limited

3rd Quarter Accounts (Un-audited) For the Period Ended

March 31, 2025

Contents

Corporate Information 2

Directors' Review 3

Condensed Interim Statement of Financial Position 6

Condensed Interim Statement of Profit or Loss 7

Condensed Interim Statement of Comprehensive Income 8

Condensed Interim Statement of Cash Flows 9

Condensed Interim Statement of Changes in Equity 10

Selected Notes to and Forming Part of the Condensed Interim 11

Financial Statements

Directors' Review 34

Sui Northern Gas Pipelines Limited

Corporate Information

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

Sui Northern Gas Pipelines Limited

DIRECTORS' REVIEW

We are pleased to present the unaudited financial statements of your Company for the period ending March 31, 2025. The Company has been able to earn a profit before tax of Rs. 17,657 million as against Rs. 16,440 million during the corresponding period of last year. The Profit after tax amounted to Rs. 10,138 million as against a profit of Rs. 10,724 million during the corresponding period of the previous year. The earnings per share for the period under review is Rs. 15.98 as against earnings per share of Rs. 16.91 for the same period last year.

The summary of financial results for the period under review is given below:

(Rs. in Million)

Profit before taxation 17,657

Provision for taxation (7,519)

Profit after taxation 10,138

The marginal decrease in profit after tax for the period is primarily attributed to increased provision for taxation as compared to the corresponding period of last year. The disallowance against UFG benchmark witnessed increase despite a reduction in the overall volume of UFG from 24,559 MMCF to 22,985 MMCF during the two periods presented. Increase in disallowance is attributable to changes in sales mix and reduction of Gas input due to low offtake by Power and Captive power consumers.

In spite of the prevailing economic challenges confronting the gas sector, the Company's consistent performance and sustained profitability are highly commendable. The Board of Directors, Management, and staff remain confident that the Company's operational and financial performance will continue to improve in the years ahead.

PROJECTS

During the period, your Company has laid 59.87 kms Transmission Lines with diameters ranging from 6" to 24". In addition to Transmission Lines, 352.996 kms of Distribution mains were laid during the third quarter period ended on March 31, 2025 for improving pressure and supplying gas to new towns which has enhanced customers satisfaction level. Moreover, the Company remained in the process of constructing 20 kms Contract Lines of Razgir Project for M/s MOL.

ONGOING /FUTURE PROJECTS

During the period, the Company achieved major milestones in strengthening its transmission network. The 18" dia × 230 km Shaheed Fahad Ashfaq Project connecting Bannu West and Wali gas fields to Daudkhel was successfully commissioned on March 23, 2025, enabling gas injection from MPCL's Shewa Well-1.

Under the Kot Palak Project, multiple transmission pipelines are being laid to inject 45 MMCFD gas from Kot Palak field and augment the system, including replacement of the existing 8" dia × 44.6 km line with a new 18" dia line.

Sui Northern Gas Pipelines Limited

The 16" dia × 3 km Chah Tamboli-Sundar Industrial Estate Loopline is ready for commissioning, while construction of the 20" dia × 13.6 km QV-2 to Fauji Fertilizer pipeline at Mirpur Mathelo is progressing on a cost-sharing basis for supply of 105 MMCFD RLNG.

Design work has also been completed for a 24" dia × 63.5 km line from CV-25 to the Adhi-Rawat network to enhance operational flexibility. Additionally, SNGPL commissioned an 8" dia × 2.5 km Makori East-6 Flow Line for M/s MOL, and construction of other MOL flow lines, including Razgir-1 to Tulanj West Well-2 (8" dia × 13 km) and Tulanj West Well-2 to EPF Tulanj (10" dia × 7 km), is complete and ready for commissioning.

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

Sui Northern Gas Pipelines Limited

Condensed Interim Statement of Financial Position (Un-audited)

As at March 31, 2025

EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES Authorized share capital	Note	Un-audited March 31, 2025	Audited June 30, 2024
		(Rupees in thousand)
		15,000,000	15,000,000
Issued, subscribed and paid up share capital		6,342,167	6,342,167
Revenue reserves		65,134,385	57,850,651
Total equity NON-CURRENT LIABILITIES Long term financing from financial institutions -Secured Long term financing - unsecured Lease liability Security deposits Deferred grant Contract liabilities Employee benefit obligations CURRENT LIABILITIES Trade and other payables Current portion of: Contract Liabilities Deferred grant Lease liabilities Long term financing from financial institutions - secured Long term financing - unsecured Provision for taxation Unclaimed dividend Interest / mark-up accrued on loans and other payables Short term borrowings from financial institutions - secured CONTINGENCIES AND COMMITMENTS		71,476,552	64,192,818 22,996,705 64,939 23,709,268 62,712,055 54,005,598 25,565,633 16,160,706 205,214,904 1,160,520,789 11,306,131 3,902,277 4,487,799 6,472,250 212,976 563,908 231,709 45,093,225 140,209,138 1,373,000,202
	4	16,214,963 54,688 20,762,546 72,280,212 52,674,575 25,656,066 18,946,351
	5
	6
		206,589,401
	7	1,169,845,967 7,490,703 3,824,235 4,196,822 7,318,583 56,907 11,503,860 243,554 40,580,147 166,379,729
	6
	8
	9
		1,411,440,507
	10
		1,689,506,460	1,642,407,924

The annexed notes from 1 to 29 form an integral part of these condensed interim financial statements.

(Kamran Akram)

Chief Financial Officer

Sui Northern Gas Pipelines Limited

Condensed Interim Statement of Financial Position (Un-audited)

As at March 31, 2025

Note ASSETS NON-CURRENT ASSETS Property, plant and equipment 11 Intangible assets Right of use assets Deferred taxation Long term loans Employee benefits Long term deposits and prepayments CURRENT ASSETS Stores and spare parts Stock in trade 12 Trade debts 13 Loans and advances Trade deposits and short term prepayments Accrued interest Other receivables 14 Contract assets Sales tax recoverable Cash and bank balances 15	Un-audited March 31, 2025
	(Rupees in thousand)
		280,459,663 246,136 23,123,182 7,580,846 1,212,528 5,526,177 578,434 318,726,966 8,436,037 19,045,561 283,179,353 1,140,951 178,592 75,278 866,088,112 16,297 127,776,230 17,744,547 1,323,680,958
	302,462,027 447,071 20,808,501 23,831,846 1,312,050 6,554,022 689,486
	356,105,003
	9,536,582 35,635,210 210,480,302 6,547,290 369,764 69,601 914,454,753 236,525 135,298,617 20,772,813
	1,333,401,457
	1,689,506,460	1,642,407,924

Audited June 30, 2024

(Amer Tufail)

Managing Director/CEO

(Muhammad Ismail Qureshi)

Chairman

Sui Northern Gas Pipelines Limited

Condensed Interim Statement of Profit or Loss (Un-audited)

For the Period Ended March 31, 2025

Note Revenue from contracts with customers - Gas sales 16 Add: Tariff adjustment 17	Three-month	period ended		Nine-months	period ended
	March 31, 2025	March 31, 2024 (Restated)		March 31, 2025	March 31, 2024 (Restated)
	(Rupees in thousand)
	302,770,141	365,324,930		1,016,378,295	989,866,918
	64,055,990	33,271,261		48,495,729	139,761,965
Revenue inclusive of tariff adjustment		366,826,131	398,596,191	1,064,874,024	1,129,628,883
Less: Cost of gas sales	18	324,825,628	387,862,704	996,904,724	1,096,400,168
Gross profit Other income	19	42,000,503 3,465,887	10,733,487 10,875,640	67,969,300 21,578,627	33,228,715 31,547,362
Operating income net of cost of gas sales Operating expenses Selling costs Administrative expenses Other expenses 20 Net impairment loss on financial assets Effect of settlement agreements on interest income / expense recognized in prior periods 21	45,466,390	21,609,127 2,987,311 2,838,380 319,139 (9,329) -6,135,501		89,547,927	64,776,077 8,134,133 7,993,716 1,152,605 1,185,927 -18,466,381
	2,866,159			8,494,367
	3,103,505			9,045,998
	388,995			1,107,897
	767,536			2,049,035
	27,618,582			27,618,582
	34,744,777			48,315,879
Operating profit	10,721,613	15,473,626		41,232,048	46,309,696
Finance cost	6,404,759	9,409,990		23,574,737	27,297,285
Profit before minimum tax and income tax Minimum tax differential (levy) 22	4,316,854	6,063,636		17,657,311	19,012,411
	-	1,273,190		-	2,572,659
Profit before income tax		4,316,854	4,790,446	17,657,311	16,439,752
Income tax	22	1,928,598	1,090,087	7,519,602	5,715,905
Profit for the period	2,388,256	3,700,359		10,137,709	10,723,847
Earnings per share Basic and diluted (in Rupees)	3.77	5.83		15.98	16.91

The annexed notes from 1 to 29 form an integral part of these condensed interim financial statements.

(Kamran Akram)

Chief Financial Officer

(Amer Tufail)

Managing Director/CEO

(Muhammad Ismail Qureshi)

Chairman

Sui Northern Gas Pipelines Limited

Condensed Interim Statement of Comprehensive Income (Un-audited) for the Period Ended 31, 2025

Three-month period ended March March 31, 2025 31, 2024 (Rupees in thousand)			Nine-months period ended
			March March 31, 2025 31, 2024 (Rupees in thousand)
Profit for the period Other comprehensive income for the period Items that may be reclassified subsequently to profit or loss Items that will not be subsequently reclassified to profit or loss	2,388,256	3,700,359	10,137,709	10,723,847
	-	-	-	-
	-	-	-	-
	-	-	-	-
Total comprehensive income for the period	2,388,256	3,700,359	10,137,709	10,723,847

The annexed notes from 1 to 29 form an integral part of these condensed interim financial statements.

(Kamran Akram)

Chief Financial Officer

(Amer Tufail)

Managing Director/CEO

(Muhammad Ismail Qureshi)

Chairman

Sui Northern Gas Pipelines Limited

Condensed Interim Statement of Cash Flows (Un-audited)

for the Period Ended March 31, 2025

Note

March 31, March 31,

2025 2024

CASH FLOWS FROM OPERATING ACTIVITIES

Cash generated/(used in) from operations 23 & 23.1 Finance cost paid

Payments of lease liabilities - interest Minimum tax and income tax paid

Employee benefits obligations / contributions paid Increase in security deposits

Receipts against government grants and consumer contributions

Increase in long term loans

Increase in long term deposits and prepayments

(Rupees in thousand)

58,172,898

(25,489,955)

(2,592,953)

(12,830,643)

(2,728,493)

9,568,157

749,589

(196,390)

(111,052)

59,160,481

(25,190,217)

(2,867,781)

(9,789,483)

(2,180,751)

2,573,965

2,285,536

(277,416)

(11,261)

Net cash inflow from operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for property, plant and equipment Payments for intangible assets

Proceeds from disposal of property, plant and equipment Return on bank deposits

Net cash outflow from investing activities CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from long term financing from financial institutions - secured

Repayment of long term financing - unsecured

Repayment of long term financing from financial institutions - secured

Payments of lease liabilities - principal Repayment of short term borrowings Proceeds from short term borrowings Dividend paid

Net cash outflow from financing activities

24,541,158

23,703,073

(32,057,067)

(179,946)

112,159

1,289,065

(30,835,789)

8,850,000

(15,010)

(6,089,064)

(2,200,057)

(12,900,000)

12,900,000

(949,526)

(403,657)

(35,565,963)

(339,255)

37,916

678,358

(35,188,944)

-(171,227)

(5,935,409)

(3,545,773)

(26,400,000)

26,400,000

(2,842,130)

(12,494,539)

Net decrease in cash and cash equivalents

Cash and cash equivalents at the beginning of the period

(23,142,325)

(112,464,591)

(7,536,373)

(101,945,544)

Cash and cash equivalents at

the end of the period 23.2

(135,606,916)

(109,481,917)

The annexed notes from 1 to 29 form an integral part of these condensed interim financial statements.

(Kamran Akram)

Chief Financial Officer

(Amer Tufail)

Managing Director/CEO

(Muhammad Ismail Qureshi)

Chairman

Sui Northern Gas Pipelines Limited

Condensed Interim Statement of Changes in Equity (Un-audited)

for the Period Ended March 31, 2025

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 from July 1, 2023 to March 31,

2024

-	-	-	10,723,847	10,723,847	10,723,847
-	-	-	-	-	-

Profit for the period Other comprehensive income

for the period

- - - 10,723,847 10,723,847 10,723,847

6,342,167 4,127,682 480,000 44,408,268 49,015,950 55,358,117

Balance as at March 31, 2024 (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 from July 1, 2024 to March 31, 2025

-	-	-	10,137,709	10,137,709	10,137,709
-	-	-	-	-	-

Profit for the period Other comprehensive

income for the period

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

-	-	-	10,137,709	10,137,709 10,137,709
6,342,167	4,127,682	480,000	60,526,703	65,134,385 71,476,552

Balance as at March 31, 2025 (Un-audited)

The annexed notes from 1 to 29 form an integral part of these condensed interim financial statements.

(Kamran Akram)

Chief Financial Officer

(Amer Tufail)

Managing Director/CEO

(Muhammad Ismail Qureshi)

Chairman

Sui Northern Gas Pipelines Limited

Selected Notes to and forming part of the Condensed Interim Financial Statements (un-audited) for the Period Ended March 31, 2025

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 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.
BASIS OF PREPARATION
1. 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 comprises:
  - 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.
  
  11
  
  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.
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).
  1. Application guidance on accounting for minimum and final taxes
    The effects of change in accounting policy on 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 nine-month ended March 31, 2024

- unaudited

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

-19,012,411

8,288,564

2,572,659

(2,572,659)

2,572,659

16,439,752

5,715,905

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 ended March 31,

2024 - unaudited

(Rupees in thousand)

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

-12,139,097

4,733,102

1,892,128

(1,892,128)

1,892,128

10,246,969

2,840,974

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.

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

The effects of change in accounting policy on 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 nine-month ended March 31,

2025 - unaudited

(Rupees in thousand)

Tariff adjustment Finance cost

For the nine-month ended March 31,

2024 - unaudited

146,838,938

121,917,946

(98,343,209)

48,495,729

23,574,737

Tariff adjustment	243,677,105	(103,915,140)	139,761,965
Finance cost	131,212,425	(103,915,140)	27,297,285
For the three-month

ended March 31,

2025 - unaudited

Tariff adjustment Finance cost

For the three-month ended March 31,

2024 - unaudited

87,987,402

30,336,171

(23,931,412)

64,055,990

6,404,759

Tariff adjustment	69,157,684	(35,886,423)	33,271,261
Finance cost	45,296,413	(35,886,423)	9,409,990

Sui Northern Gas Pipelines Limited

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.
Un-audited March 31, 2025

(48,495,729)

48,495,729

(38,358,020)

10,137,709

Rupees

(60.48)

15.98

Un-audited March 31, 2024

(139,761,965)

139,761,965

(129,038,118)

10,723,847

Rupees

(203.46)

16.91

(Rupees in thousand)

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:

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)

Sui Northern Gas Pipelines Limited

Un-audited March 31, 2025

(913,892,983)

913,892,983

775,613,477

(Rupees in thousand)

Audited 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 total assets

Total assets would have amounted to

(865,397,254)

865,397,254

777,010,670

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.

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

Sui Northern Gas Pipelines Limited

Note 4. LONG TERM FINANCING - SECURED Conventional financing Term finance Syndicate term finance Syndicate term finance Islamic mode of financing Islamic finance under lease arrangement Islamic finance under musharaka arrangement Islamic finance under musharaka arrangement Less: Transaction cost Less: Current portion shown under current liabilities	Un-audited		Audited
	March 31,		June 30,
	2025		2024
	(Rupees in thousand)
	-		153,667
	5,452,500		5,906,875
	5,312,667		8,854,444
	10,765,167		14,914,986
	2,333,333		3,888,889
	468,750		703,125
	10,000,000		10,000,000
	12,802,083		14,592,014
	(33,704)		(38,045)
	(7,318,583)		(6,472,250)
4.1	16,214,963	22,996,705

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	(5,935,409)	(6,620,134)
Closing balance	23,533,546	29,468,955
Current portion shown under current liabilities	(7,318,583)	(6,472,250)
	16,214,963	22,996,705

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.

Sui Northern Gas Pipelines Limited

5. LONG TERM FINANCING - UNSECURED Other loans - Local currency: Less: Current portion shown under current liabilities	Un-audited Audited March 31, June 30, 2025 2024
	(Rupees in thousand)
	111,595 (56,907)	277,915 (212,976)
	54,688	64,939

5.1

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

Note	Un-audited March 31, 2025	Audited June 30, 2024
6. CONTRACT LIABILITIES Consumer contribution 6.1 Due to customers against construction contract Advances from customers against gas bill and new connection Less: current portion shown under current liabilities	(Rupees in thousand)
	25,656,066 6,653,423 837,280	25,565,633 6,402,729 4,903,402 36,871,764 (11,306,131)
	33,146,769 (7,490,703)	25,565,633 6,402,729 4,903,402 36,871,764 (11,306,131)
	25,656,066	25,565,633
Consumer contribution against: Completed jobs Jobs-in-progress Less: Accumulated amortization: Opening balance Amortization for the year/period		38,768,409 14,194,897 52,963,306 26,514,406 883,267 27,397,673
	39,483,754 14,264,604
	53,748,358
	27,397,673 694,619
	28,092,292
	25,656,066	25,565,633

6.1.1 The Company has recognized the contract liabilities in respect of the amount received from the customers as contribution towards the cost of supplying and laying transmission, service and main lines. These are being amortised over the useful lives of the transmission and distribution system

Sui Northern Gas Pipelines Limited

Un-audited March 31, 2025

Note

Audited June 30, 2024

7. TRADE AND OTHER PAYABLES Creditors for: Gas 7.1 Supplies Accrued liabilities Provident fund Advance from Sui Southern Gas Company Limited (SSGCL) against cost equalization Gas Infrastructure Development Cess (GIDC) 7.2 Interest free deposits repayable on demand Earnest money received from contractors Workers' Profit Participation Fund (WPPF) 7.3	(Rupees in thousand)
	1,125,001,240	1,115,211,319
	6,791,104	6,853,243
	14,851,872	15,046,943
	195,268	-
	20,000,000	20,000,000
	8,842	8,058
	1,237,858	1,236,572
	260,404	263,841
	1,499,379	1,900,813
	1,169,845,967	1,160,520,789

7.1

7.2

Included in trade payables is an amount of Rs 319,105.800 million (Jun 30, 2024: Rs 311,441.564 million) due to Pakistan State Oil Company Limited (PSO). This amount represents payables for 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 Honorable 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 Honorable 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 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 Honorable Supreme Court of Pakistan has ordered the recovery of previous year GIDC in 24 monthly installments 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. 133,309.965 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.

Sui Northern Gas Pipelines Limited

7.3 Workers' Profit Participation Fund The reconciliation of carrying amount is as follows: Opening balance Allocation for the period/year Payments made during the period/year	Note	Un-audited March 31, 2025	Audited June 30, 2024
		(Rupees in thousand)
		1,900,813 929,332 (1,330,766)	946,878 1,570,700 (616,765)
Closing balance		1,499,379	1,900,813
INTEREST AND MARK-UP ACCRUED ON LOANS AND OTHER PAYABLES Accrued mark-up / interest on: Long term financing from financial institutions secured Long term financing - unsecured Short term borrowing from financial institutions secured Deposits from customers Late payment of gas creditors and gas development surcharge		636,032 197,559 3,928,207 5,478,600 30,339,749	1,727,116 220,469 7,527,006 5,278,884 30,339,750
		40,580,147	45,093,225
9. Short Term Borrowing From Financial Institutions - Secured
Short Term Borrowing From Financial Institutions - Secured	9.1	166,379,729	140,209,138

9.1

The total limit of various financing facilities available from banks against short-term running finance facilities aggregate to Rs 178,525 million (Jun 30, 2024: Rs 158,875 million) out of which the Company has utilized Rs 166,379.729 million (Jun 30, 2024: Rs 140,209.138 million). This amount includes financing facilities utilized under the Islamic mode, which amount to Rs 67,716 million (Jun 30, 2024: Rs 53,594 million). Additionally, these facilities include financing utilized in the money market amounting to Rs 10,000 million (Jun 30, 2024: 10,000 million). The applicable markup rates during the period ranging from one to six months KIBOR plus 25 basis points to minus 401 basis points (Jun 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 (Jun 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 (Jun 30, 2024: Rs 50,000 million). Markup is payable on a quarterly basis, with the effective interest rate charged during the period ranging from 8.75% to 21.99% (Jun 30, 2024: 21.14% to 22.96%) per annum.

Sui Northern Gas Pipelines Limited

CONTINGENCIES AND COMMITMENTS
1. Contingencies
  There is no significant change in contingencies from the preceding 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.

Sui Northern Gas Pipelines Limited

10.2 Commitments: a) Capital Commitments Property, plant and equipment Intangible assets Stores and spares	Note	Un-audited March 31, 2025	Audited June 30, 2024
		(Rupees in thousand)
		642,814 66,140 11,969,131	390,725 65,713 26,470,957
		12,678,085	26,927,395
b) Other Commitments		1,232,284	1,328,172
11. PROPERTY, PLANT AND EQUIPMENT Operating fixed assets Tangible Opening book value Additions during the period/year	11.1	234,173,477	213,047,259
		18,386,642	38,611,538
		252,560,119	251,658,797 (27,149) (17,458,171) (17,485,320)
Book value of PPE disposed off during the period/year	11.2	(3,979)
Depreciation charged during the period/year		(13,881,527)
		(13,885,506)
Closing book value		238,674,613	234,173,477
Capital work-in-progress	11.3	63,787,414	46,286,186
		302,462,027	280,459,663
11.1 Additions during the period / year
Freehold land		-	107,232
Buildings and civil construction on freehold land		4,723	68,984
Transmission system		5,996,927	3,741,828
Distribution systems		5,955,003	21,820,011
Consumer meter and town border stations		4,427,049	10,715,381
Telecommunication system and facilities		69,950	37,279
Compressor stations and equipment		866,467	173,916
Plant and machinery		281,972	544,962
Furniture and equipment		18,775	117,109
Tools and accessories		674	126,752
Transport vehicles Computers, telecommunication and ancillary equipment		552,253 212,849	488,642 669,442
		18,386,642	38,611,538

Sui Northern Gas Pipelines Limited

11.2 Disposals during the period / year Transport vehicles Computers and ancillary equipmen	Note	Un-audited March 31, 2025	Audited June 30, 2024
		(Rupees in thousand)
		3,961 18	26,838 311
		3,979	27,149
11.3 Capital work-in-progress Transmission system Distribution system Stores and spares including in transit Rs. 378.920 million (June 30, 2024: Rs. 1,996.335 million) Advances for land and other capital expenditure		9,517,001	7,441,994
		34,079,005	19,549,429
		18,637,852	16,551,151
		1,553,556	2,743,612
		63,787,414	46,286,186
STOCK-IN-TRADE Gas in pipelines Gas in floating storage regassification unit (FSRU)/ Held with third party	12.1	10,126,049	11,028,298
	12.1	25,509,161	8,017,263
		35,635,210	19,045,561

12.1

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

Note 13. TRADE DEBTS Considered good: Secured Unsecured 13.1 Deferred gas sales	Un-audited March 31, 2025	Audited June 30, 2024
	(Rupees in thousand)
	108,395,003 136,481,511 (332,172)	121,343,849 194,677,656 (827,146)
Less: Allowance for expected credit losses	244,544,342 (34,064,040)	315,194,359 (32,015,006)
	210,480,302	283,179,353

Sui Northern Gas Pipelines Limited

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), totaling Rs 59,067.858 million (2024: Rs 117,782.889 million), along with interest of Rs 37,173.453 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 1,028,721.053 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 474,360.179 million (2024: Rs 370,445.039 million) payable to government-owned and other entities has not been recongized 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 totaling Rs 518,071.408 million (2024: Rs 530,702.747 million) and Rs 395,821.575 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.

Note 14. OTHER RECEIVABLES Excise duty recoverable Less: Expected credit losses Tariff adjustment (indigenous) 14.1 Tariff adjustment (RLNG) 14.3 Current account with SSGCL Others	Un-audited March 31, 2025	Audited June 30, 2024
	(Rupees in thousand)
		108,945 108,945 - 530,702,747 334,694,507 34,566 656,292
	108,945 108,945
	- 518,071,408 395,821,575 37,075 524,695
	914,454,753	866,088,112
14.1 Tariff adjustment (indigenous) Opening balance Recognised for the period/year	530,702,747 (12,631,339)	432,210,524 98,492,223
	518,071,408	530,702,747

14.2

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 expenses is as follows:

Sui Northern Gas Pipelines Limited

Note Depreciation - net of ROA 14.2.1 Impact of Super Tax on the Rate of Return (ROA) 14.2.2 Excess cost of gas sales allowed 14.2.3 Operating cost 14.2.4	Un-audited Audited March 31, June 30, 2025 2024
	(Rupees in thousand)
	19,000 744,000 (264,557) 81,382	19,000 744,000 (264,557) 81,382
	579,825	579,825

.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.
1. This represents the impact of the 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 favorable outcome.
2. This represents the cost of gas sold inadvertently excess allowed by the OGRA, which will be offered back by the Company in the Motion for Review of FRR 2023-2024.
  This represents the gas internally consumed inadvertently disallowed by the OGRA,
3. against which the Company has filed a review appeal and is confident of a favourable outcome.

14.3 Tariff adjustment (RLNG) Opening balance Recognised for the period/year Received from GoP	Un-audited March 31, 2025	Audited June 30, 2024
	(Rupees in thousand)
	334,694,507 61,127,068 -	303,252,463 59,694,554 (28,252,510)
Closing balance	395,821,575	334,694,507

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 March 31, 2025. 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, 45,696,525 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

Sui Northern Gas Pipelines Limited

14.4

OGRA. Federal Government released subsidy amounting to Rs 116,057.910 million till March 31, 2025.

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. Accordingly, the Company has filled 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 14.4.1 Finance cost on encashment of security LPS income take or pay adjustment Operating cost 14.4.2	Un-audited March 31, 2025	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

14.4.1

14.4.2

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 Honorable 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.

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 Honorable Lahore High Court for enforcement and recovery of Awards under the Recognition and Enforcement Act 2017.

Sui Northern Gas Pipelines Limited

CASH AND BANK BALANCES

At banks:

Deposit accounts Current accounts

Un-audited Audited

March 31, June 30,

2025 2024

(Rupees in thousand)

11,697,290

228,174

9,913,385

157,985

Collection accounts In hand

11,925,464

9,333,506

4,151

10,071,370

8,161,837

1,648

Loss allowance

21,263,121

(490,308)

18,234,855

(490,308)

20,772,813

17,744,547

15.

15.1 Included in deposit accounts are amounts deposited by the Company in separate bank account(s) for funds released by the Government as grant to finance distribution development projects being the Government share of cost. Withdrawal from this account(s) is made on periodic basis to the extent of projects approved and sanctioned therefrom and until then, these funds amounting to Rs 7,221.554 million (June 30, 2024: Rs 7,728.567 million) are not used for the normal treasury operations of the Company. Any profit earned thereon is credited to the funds instead of accounting for as Company's income.

16. REVENUE FROM CONTRACTS - GAS SALES		Three-month Un-audited March 31, 2025 (Rupees in tho	period ended Un-audited March 31, 2024 usand)	Nine months Un-audited March 31, 2025 (Rupees in	pe tho	riod ended Un-audited March 31, 2024 usand)
	Gross sales - Indigenous gas	151,786,097	184,646,782	429,370,255		398,010,853
	Gross sales - RLNG	202,830,054	243,797,984	766,644,691		766,002,107
	Gross sales - LPG air mix	15,084	-	28,610		-
		354,631,235	428,444,766	1,196,043,556		1,164,012,960
	Sales tax - Indigenous gas	(20,320,895)	(24,794,202)	(60,329,564)		(53,641,576)
	Sales tax - RLNG	(31,537,472)	(38,325,634)	(119,330,521)		(120,504,466)
	Sales tax - LPG air mix	(2,727)	-	(5,176)		-
		(51,861,094)	(63,119,836)	(179,665,261)		(174,146,042)
		302,770,141	365,324,930	1,016,378,295		989,866,918
17.	TARIFF ADJUSTMENT Indigenous gas	21,398,488	29,373,618	(12,631,339)		111,341,579
	RLNG	42,657,502	3,897,643	61,127,068		28,420,386
		64,055,990	33,271,261	48,495,729		139,761,965

Sui Northern Gas Pipelines Limited

COST OF GAS SALES Opening stock of gas in pipelines Gas purchases: Southern system Northern system RLNG LPG	Three-month period ended		Nine months period ended
	Un-audited March 31, 2025	Un-audited March 31, 2024	Un-audited March 31, 2025	Un-audited March 31, 2024
	(Rupees in thousand)		(Rupees in thousand)
	30,109,453	32,418,026 134,377,969 40,726,212 188,644,285 - 363,748,466	19,045,561	18,247,043 284,615,480 124,982,603 658,104,106 - 1,067,702,189
	112,516,167 32,103,686 174,784,651 11,375		224,518,661 101,128,096 656,522,215 27,176
	319,415,879		982,196,148
	349,525,332	396,166,492	1,001,241,709	1,085,949,232
Less: Gas internally consumed Closing stock of gas in pipelines	2,918,761 35,635,210	4,335,410 18,002,224	9,357,989 35,635,210	11,106,397 18,002,224
	38,553,971	22,337,634	44,993,199	29,108,621
Distribution Cost	13,854,267	14,033,846	40,656,214	39,559,557
	324,825,628	387,862,704	996,904,724	1,096,400,168
19. OTHER INCOME Interest income on late payment of gas bills Gain on initial recognition of financial liabilities at fair value Interest on staff loans and advances Return on bank deposits Net gain on sale of fixed assets Meter Rentals and service income Amortization of deferred credit and contract liabilities Insurance claim Sale of tender documents Sale of scrap Liquidated damages recovered Gain on construction contracts Bad debt recoveries Exchange gain Transportation Income Miscellaneous	958,156 484 21,898 135,176 378 1,071,931 695,689 - 8,090 -119,877 - 386 - 445,678 8,144	8,077,725 699 17,437 388,241 24,667 1,052,281 650,244 188 2,239 70,793 30,669 - 693 150,393 396,109 13,262	13,357,113 1,452 77,318 672,681 33,937 3,192,280 2,066,768 - 19,065 240,117 462,932 58,106 674 - 1,365,566 30,618	23,204,688 2,098 66,938 1,254,096 99,499 3,095,858 1,917,870 244 9,567 151,084 115,092 - 1,940 447,464 1,114,482 66,442
	3,465,887	10,875,640	21,578,627	31,547,362
20. OTHER EXPENSES Workers' Profit Participation Fund Exchange loss on gas purchases Loss on initial recognition of financial assets at fair value	227,203	319,139	929,332	1,000,654
	37,175	-	51,976	-
	124,617	-	126,589	151,951
	388,995	319,139	1,107,897	1,152,605

Sui Northern Gas Pipelines Limited

21 REVERSAL UNDER SETTLEMENT AGREEMENTS OF INTEREST INCOME RECOGNIZED IN PRIOR PERIODS ON LATE PAYMENTS

The Company in line with the Federal Government's decision on the case submitted by the Ministry of Energy (Power Division) dated January 14, 2025 and March 19, 2025 has approved the settlement mechanism for the waiver of late payment surcharge income against Government-owned Power Producers (GPPs) and certain Independent Power Prodcuers (IPPs). Accordingly, net amount of late payment surcharge (LPS) recognized earlier on account of delayed payments by GPPs and IPPs amounting to Rs 25,724.546 million has been derecognized in the subsequent period.

Moreover, as part of the aforesaid decision, the Company entered into agreements with GPPs for the settlement of Take or Pay (ToP) disputed invoices under which LPS income amounting to Rs 6,950.945 million has been subsequently derecognized while LPS expense recognized in prior year of National Power Parks Management Company (Private) Limited (NPPMCL) amounting to Rs 5,056.909 million has been subsequently recovered.

22. Income tax and levy Levy Minimum tax differential	Three-month	period ended	Nine months	period ended
	Un-audited March 31, 2025	Un-audited March 31, 2024	Un-audited March 31, 2025	Un-audited March 31, 2024
	(Rupees in thousand)		(Rupees in thousand)
	-	1,273,190	-	2,572,659
Income tax
Current tax For the period Prior years	294,878 -	1,983,844 -	23,382,380 388,215	6,556,449 -
	294,878	1,983,844	23,770,595	6,556,449
Deferred tax	1,633,720	(893,757)	(16,250,993)	(840,544)
	1,928,598	1,090,087	7,519,602	5,715,905
23. CASH GENERATED FROM OPERATIONS Profit before minimum tax and income tax Adjustment for non-cash charges and other items: Depreciation on operating fixed assets Depreciation on right of use of assets Amortization of intangible assets Provision for employee benefit obligations Amortization of deferred credit Finance cost Return on bank deposits Net gain on sale of fixed assets Net impairment loss on financial assets Loss on initial recognition of financial assets at fair value Gain on initial recognition of financial liabilities at fair value Unwinding of discounting adjustment on deferred grant - net Working capital changes			Note 23.1	17,657,311 13,881,527 2,622,757 138,320 4,164,377 (2,066,768) 23,574,737 (672,681) (33,937) 2,049,035 126,589 (1,452) (52,619) (3,214,298)	19,012,411 12,836,265 2,630,557 138,978 3,486,285 (1,917,870) 27,297,285 (1,254,096) (99,499) 1,185,927 151,951 (2,098) (38,949) (4,266,666)
			58,172,898	59,160,481

Sui Northern Gas Pipelines Limited

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