Sui Northern Gas Pipelines LimitedPSX: SNGP

Transmission of Quarterly Financial Statements for the Period Ended September 30, 2024

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

1st Quarter Accounts (Un-Audited) For the Period Ended September 30, 2024

Contents

Corporate Information 2

Directors' Review 3

Condensed Interim Statement of Financial Position 5

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 33

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 ended September 30, 2024. The Company has earned a profit after tax amounting to Rs. 3,283 million compared to Rs. 3,706 million during the corresponding period last year. The earnings per share (EPS) for the period under review is Rs. 5.18, a decrease from Rs. 5.84 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 5,966

Provision for taxation (2,683)

Profit after taxation 3,283

Marginal reduction in profit is attributable to the Regulatory disallowances for UFG and other costs. During the period, the total UFG of the Company increased to 4.42% as compared to 3.73%. UFG for indigenous gas during this period was 6.81% as compared to 5.29%. This increase is primarily due to change in sales mix and reduction in offtake by Power Sector.

Your Company is focused on reducing UFG and other related disallowances and has undertaken number of steps to improve the situation. The steady stream of profitability maintained by your Company is commendable. The Board of Directors, Management, and staff of the Company are confident that the Company's performance will further improve in the coming years.

PROJECTS

During the period, the Company has laid 5.69 kms Transmission Pipelines with diameters ranging from 6" to 24". In addition to Transmission Lines, 123.126 kms of Distribution mains were laid during the first quarter ended on September 30, 2024 for improving pressure and supplying gas to new towns which has enhanced customers satisfaction level. The Company also laid 2.50 kms of Contract Lines during the period for M/s MOL.

ONGOING /FUTURE PROJECTS

During the period, the Company continued to expand and strengthen its transmission infrastructure through several key projects. Under the Shaheed Fahad Ashfaq Project, an 18" dia × 230 km transmission line is being laid to connect the newly discovered Bannu West (40-100 MMCFD) and Wali (25-50 MMCFD) gas fields with the SNGPL network. Construction is progressing well, with the entire pipeline laid and 130 km already commissioned.

The Kot Palak Project aims to inject 45 MMCFD gas from the Kot Palak field of M/s Al-Haj Enterprises (Pvt.) Ltd. and augment the transmission system through multiple pipelines, including a 12" dia × 77 km line from Kot Palak CPF to D.I. Khan, a 12" dia × 103 km line from D.I. Khan to Manjuwal, and an 18" dia × 84.8 km line from Daudkhel to Dhullian.

Sui Northern Gas Pipelines Limited

Construction activities have commenced with the establishment of camps and work on the 18" dia × 44.6 km section from F3 (Zero Point) to FV-15, including the replacement of the old 8" dia pipeline. To optimize system performance and enhance distribution pressure, a 16" dia × 3 km pipeline from Chah Tamboli to Sundar Industrial Estate Loopline is also under construction.

Additionally, work has begun on a 20" dia × 13.6 km pipeline from Qadirpur Valve Assembly (QV-2) to Fauji Fertilizer Plant at Mirpur Mathelo, being executed on a 100% cost-sharing basis for the supply of 105 MMCFD RLNG. Furthermore, SNGPL successfully completed and commissioned the 8" dia × 2.5 km Makori East-6 Flow Line on September 25, 2024, for M/s MOL on a contract basis.

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 As at September 30, 2024

EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES Authorized share capital	Note	Un-audited September 30, 2024	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		58,279,306	57,850,651
Shareholders' equity NON-CURRENT LIABILITIES Long term financing from financial institutions -Secured Long term financing - unsecured Lease liability Security deposits Deferred grant Contract liabilities Employee benefits 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		64,621,473	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	20,371,372 66,574 23,228,048 64,171,158 54,164,400 25,644,721 17,100,171
	5
	6
		204,746,444
	7	1,167,044,285 9,700,923 3,902,277 4,383,806 6,318,583 212,976 4,407,986 356,535 43,633,705 135,350,918
	6
	8
	9
		1,375,311,994
	10	-
		1,644,679,911	1,642,407,924

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

(Kamran Akram)

Chief Financial Officer

Sui Northern Gas Pipelines Limited

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 Contract assets Accrued interest Other receivables 14 Sales tax recoverable Cash and bank balances 15	Un-audited September 30, 2024
	(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 16,297 75,278 866,088,112 127,776,230 17,744,547 1,323,680,958
	282,804,156 236,696 22,447,367 11,989,790 1,181,510 5,876,440 582,544
	325,118,503
	8,243,202 40,783,202 273,179,389 6,752,784 1,539,183 -61,650 835,950,321 132,960,206 20,091,471
	1,319,561,408
	1,644,679,911	1,642,407,924

Condensed Interim Statement of Financial Position As at September 30, 2024

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 September 30, 2024

Revenue from contracts with customers - Gas sales Add: Tariff adjustment	Note 16 17	Period ended
		September 30, 2024	September 30, 2023 Restated
		(Rupees in thousand)
		391,565,803	318,472,694
		(30,052,464)	37,513,497
Revenue inclusive of tariff adjustment		361,513,339	355,986,191
Less: Cost of gas sales	18	354,388,648	347,084,445
Gross profit		7,124,691	8,901,746
Other income	19	12,344,994	10,585,112
Operating income net of cost of gas sales Operating expenses Selling costs Administrative expenses Other expenses 20 Net impairment loss on financial assets		19,469,685	19,486,858
		2,929,369	2,367,261
		2,151,114	2,307,518
		327,502	471,808
		(1,681,989)	(917,683)
		3,725,996	4,228,904
Operating profit		15,743,689	15,257,954
Finance cost		9,777,906	9,182,493
Profit before minimum tax and income tax		5,965,783	6,075,461
Profit before minimum tax and income tax		5,965,783	618,938
Minimum tax differential (levy)	21	-	618,938
Profit before income tax		5,965,783	5,456,523
Income tax	21	2,683,153	1,750,887
Profit for the period		3,282,630	3,705,636

Earnings per share Basic and diluted (In Rupees)		5.18	5.84

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

Sui Northern Gas Pipelines Limited

Condensed Interim Statement of Comprehensive Income (Un-audited) for the Period Ended September 30, 2024

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:	Quarter ended
	September	September
	30, 2024	30, 2023
	(Rupees in thousand)
	3,282,630	3,705,636
	-	-
	-	-
Total comprehensive income for the period	3,282,630	3,705,636

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

Sui Northern Gas Pipelines Limited

Condensed Interim Statement of Cash Flows (Un-audited)

for the Period Ended September 30, 2024

Note

September 30, September 30, 2024 2023

CASH FLOWS FROM OPERATING ACTIVITIES

Cash generated from operations 22

Finance cost paid

Payments of lease liabilities - interest Minimum tax and income tax paid Employee benefits paid/contributions paid Increase/(decrease) in Security deposits Receipts against government grants and

consumer contributions

Decrease in Long term loans to employees Increase in long term deposits and prepayments

(Rupees in thousand)

32,921,087

(10,343,441)

(885,679)

(3,248,012)

(906,233)

1,459,103

920,013

49,625

(4,110)

31,389,980

(8,361,105)

(983,173)

(2,851,011)

(704,647)

(255,620)

1,270,173

57,460

(258)

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)/ inflow from financing activities

19,962,353

19,561,799

(10,773,884)

-82,636

472,348

(10,218,900)

7,000,000

(2,779,001)

(695,955)

-(945,400)

2,579,644

(6,815,441)

(36,434)

33,789

355,535

(6,462,551)

-(6,671)

(2,779,000)

(779,838)

(10,000,000)

14,400,000

(2,729,149)

(1,894,658)

Net increase in cash and cash equivalents

Cash and cash equivalents at the beginning of the period

11,605,144

(112,464,591)

11,922,543

(101,945,544)

Cash and cash equivalents at

the end of the period 22.2

(100,859,447)

(90,023,001)

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

Sui Northern Gas Pipelines Limited

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

For the Period Ended September 30, 2024

Profit

Reserve

Equalization riated

General Reserve

Revenue Reserves Dividend Unapprop-

Share Capital

Total

Total share holders' equity

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

Balance as at 01 July

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

Total transactions with 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 three months ended September 30, 2023:

-	-	-	3,705,636	3,705,636	3,705,636
-	-	-	-	-	-

Profit for the period Other comprehensive income

for the period

- - - 3,705,636 3,705,636 3,705,636

6,342,167 4,127,682 480,000 37,390,057 41,997,739 48,339,906

Balance as at September 30, 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

Total transactions with owners, recognised directly in equity

Final dividend for the year ended June 30, 2023 @

Rupees 4.5 per share

Total comprehensive income for the three months ended September

-	-	-	3,282,630	3,282,630	3,282,630
-	-	-	-	-	-
-	-	-	3,282,630	3,282,630	3,282,630
6,342,167	4,127,682	480,000	53,671,624	58,279,306	64,621,473

30, 2024:

Profit for the period Other comprehensive

income for the period

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

Balance as at September 30, 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

Sui Northern Gas Pipelines Limited

Selected Notes to and Forming Part of the Condensed Interim Financial Statements (Un-audited)

For the Period Ended September 30, 2024

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. 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.
  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).
  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 quarter ended September 30, 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 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 quarter ended September 30, 2023

- unaudited

Minimum tax differential Profit before income tax Income tax

-6,075,461

2,369,825

618,938

(618,938)

618,938

5,456,523

1,750,887

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.

Sui Northern Gas Pipelines Limited

Change in accounting policy for Late Payment Surcharge (LPS) expense
The effects of change in accounting policy 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)

Effects on condensed interim statement of profit or loss

For the quarter ended September 30, 2024

unaudited
Tariff adjustment Finance cost
For the quarter ended September 30, 2023
unaudited

Tariff adjustment Finance cost

7,153,435

46,983,805

70,934,350

42,603,346

(37,205,899)

(33,420,853)

(30,052,464)

9,777,906

37,513,497

9,182,493

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

13

Sui Northern Gas Pipelines Limited
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:
Un-audited Un-audited
September 30, 2024
September 30, 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)

30,052,464

(30,052,464)

33,335,094

3,282,630

Rupees

52.56

5.18

(37,513,497)

37,513,497

(33,807,861)

3,705,636

Rupees

(53.31)

5.84

Un-audited Audited

September 30, 2024

June 30, 2024

(Rupees in thousand)

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

(835,344,790)

(865,397,254)

total assets	835,344,790	865,397,254
Total assets would have amounted to	809,335,121	777,010,670

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.
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

14

Sui Northern Gas Pipelines Limited
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.

Note 4. LONG TERM FINANCING - SECURED Conventional financing Term finance Syndicate term finance Syndicate term finance	Un-audited	Audited June 30, 2024 153,667 5,906,875 8,854,444 14,914,986 3,888,889 703,125 10,000,000 29,507,000 (38,045) (6,472,250)
	September 30,
	2024
	-
	5,906,875
	7,083,556
Islamic mode of financing	12,990,431 3,111,111 625,000 10,000,000
Islamic finance under lease arrangement
Islamic finance under musharaka
arrangement
Islamic finance under musharaka
arrangement
	26,726,542
Less: Transaction cost Less: Current portion shown under current liabilities	(36,587) (6,318,583)
4.1	20,371,372	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	(2,779,000)	(6,620,134)
Closing balance	26,689,955	29,468,955
Current portion shown under current liabilities	(6,318,583)	(6,472,250)
	20,371,372	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 September 30, June 30, 2024 2024
	(Rupees in thousand)
	279,550 (212,976)	277,915 (212,976)
	66,574	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 September 30, 2024	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)
	25,644,721 6,555,857 3,145,066	25,565,633 6,402,729 4,903,402 36,871,764 (11,306,131)
	35,345,644 (9,700,923)	25,565,633 6,402,729 4,903,402 36,871,764 (11,306,131)
	25,644,721	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
	38,956,861 14,313,675
	53,270,536
	27,397,673 228,142
	27,625,815
	25,644,721	25,565,633

Sui Northern Gas Pipelines Limited

Un-audited September 30, 2024

(Rupees in thousand)

Note

Audited June 30, 2024

7. TRADE AND OTHER PAYABLES Creditors for:
Gas	7.1	1,123,506,120	1,115,211,319
Supplies Accrued liabilities Provident fund		6,000,011 14,530,945 312,970	6,853,243 15,046,943 -
Advance from SSGCL against cost equilization 20,000,000			20,000,000
Gas infrastructure development cess payable 7.2 29,302			8,058
Interest free deposits repayable on demand 1,227,546			1,236,572
Earnest money received from contractors 252,703			263,841
Workers' profit participation fund 7.3 1,184,688			1,900,813
1,167,044,285			1,160,520,789

7.1

7.2

Included in trade payables is an amount of Rs 331,643.819 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 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. 133,435.934 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 September 30, 2024	Audited June 30, 2024
		(Rupees in thousand)
		1,900,813 313,989 (1,030,114)	946,878 1,570,700 (616,765)
Closing balance		1,184,688	1,900,813
8. INTEREST AND MARK-UP ACCRUED ON LOANS AND OTHER PAYABLES Accrued mark-up / interest on: Long term financing - secured Long term financing - unsecured Short term borrowing - secured Deposits from customers Late payment of gas creditors and gas development surcharge		1,193,800 222,691 6,789,395 5,088,069 30,339,750	1,727,116 220,469 7,527,006 5,278,884 30,339,750
		43,633,705	45,093,225
9. Short Term Borrowing From Financial Institutions - Secured
Short Term Borrowing From Financial Institutions - Secured	9.1	135,350,918	140,209,138

9.1

The total limit of various financing facilities available from banks against short-term running finance facilities aggregate to Rs 163,875 million (Jun 30, 2024: Rs 158,875 million) out of which the Company has utilized Rs 135,351 million (Jun 30, 2024: Rs 140,209.138 million). This amount includes financing facilities utilized under the Islamic mode, which amount to Rs 51,224 million (Jun 30, 2024: Rs 53,594 million). Additionally, these facilities include financing utilized in the money market amounting to Rs 14,400 million (Jun 30, 2024: 10,000 million). The applicable markup rates during the period range from one to three months KIBOR plus 08 basis points to minus 15 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 153,835 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 17.14% 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.
  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 September 30, 2024	Audited June 30, 2024
		(Rupees in thousand)
		312,911 65,547 19,615,315	390,725 65,713 26,470,957
		19,993,773	26,927,395
b) Other Commitments		807,424	1,328,172
11. PROPERTY, PLANT AND EQUIPMENT
Operating fixed assets
Tangible
Opening book value		234,173,477	213,047,259
Additions during the period/year	11.1	1,775,859	38,611,538
		235,949,336	251,658,797 (27,149) (17,458,171) (17,485,320)
Book value of PPE disposed off during the period/year	11.2	(439)
Depreciation charged during the period/year		(4,580,590)
		(4,581,029)
Closing book value		231,368,307	234,173,477
Capital work-in-progress	11.3	51,435,849	46,286,186
		282,804,156	280,459,663
11.1 Additions during the period / year Freehold land Buildings and civil construction on freehold land Transmission system Distribution systems Consumer meter and town border stations Telecommunication system and facilities Compressor stations and equipment Plant and machinery Furniture and equipment Tools and accessories Transport vehicles Computers, telecommunication and ancillary equipment		-4,723 140,880 457,490 451,458 - -95,593 6,577 417 529,906 88,816	107,232 68,984 3,741,828 21,820,011 10,715,381 37,279 173,916 544,962 117,109 126,752 488,642 669,442
		1,775,859	38,611,538

Sui Northern Gas Pipelines Limited

11.2 Disposals during the period / year Transport vehicles Computers and ancillary equipmen	Note	Un-audited September 30, 2024	Audited June 30, 2024
		(Rupees in thousand)
		439 -	26,838 311
		439	27,149
11.3 Capital work-in-progress Transmission system Distribution system Stores and spares including in transit Rs. 563.718 million (June 30, 2024: Rs. 1,996.335 million) Advances for land and other capital expenditure		9,230,014	7,441,994
		23,751,728	19,549,429
		16,772,040	16,551,151
		1,682,067	2,743,612
		51,435,849	46,286,186
STOCK-IN-TRADE Gas in pipelines Gas in floating storage regassification unit (FSRU)/ Held with third party	12.1	11,011,336	11,028,298
	12.1	29,771,866	8,017,263
		40,783,202	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 September 30, 2024	Audited June 30, 2024
	(Rupees in thousand)
	106,229,921 197,972,356 (689,871)	121,343,849 194,677,656 (827,146)
Less: Allowance for expected credit losses	303,512,406 (30,333,017)	315,194,359 (32,015,006)
	273,179,389	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 78,902.563 million (2024: Rs 117,782.889 million), along with interest of Rs 70,826.365 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 1,026,104.820 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 403,865.892 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 495,825.872 million (2024: Rs 530,702.747 million) and Rs 339,518.918 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) 14.2 Current account with SSGCL Others	Un-audited September 30, 2024	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
	-495,825,872 339,518,918 34,566 570,965
	835,950,321	866,088,112
14.1 Tariff adjustment (indigenous) Opening balance Recognised for the period/year	530,702,747 (34,876,875)	432,210,524 98,492,223
	495,825,872	530,702,747

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 14.1.1 Impact of Super Tax on the Rate of Return (ROA) 14.1.2 Excess cost of gas sales allowed 14.1.3 Operating cost 14.1.4	Un-audited Audited September 30, June 30, 2024 2024
	(Rupees in thousand)
	19,000 744,000 (264,557) 81,382	19,000 744,000 (264,557) 81,382
	579,825	579,825

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.
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.
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, against which the Company has filed a review appeal and is confident of a favourable outcome.

14.2 Tariff adjustment (RLNG) Opening balance Recognised for the period/year Received from GoP	Un-audited September 30, 2024	Audited June 30, 2024
	(Rupees in thousand)
	334,694,507 4,824,411 -	303,252,463 59,694,554 (28,252,510)
Closing balance	339,518,918	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 September 30, 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, 556,807 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

OGRA. Federal Government released subsidy amounting to Rs 116,057.910 million till September 30, 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. 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 14.2.1.1 Finance cost on encashment of security LPS income take or pay adjustment Operating cost 14.2.1.2	Un-audited September 30, 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

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

Note

15. CASH AND BANK BALANCES

At banks:

On deposit accounts 15.1

On current accounts

Un-audited Audited

September 30, June 30, 2024 2024

(Rupees in thousand)

13,471,857

184,747

9,913,385

157,985

Collection accounts In hand

13,656,604

6,922,088

3,087

10,071,370

8,161,837

1,648

Loss allowance

20,581,779

(490,308)

18,234,855

(490,308)

20,091,471

17,744,547

Quarter ended

Un-audited Un-audited

September September

30, 2024 30, 2023

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 7,981.071 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.

	(Rupees in thousand)
16. REVENUE FROM CONTRACTS WITH CUSTOMERS - GAS SALES Gross sales - Indigenous gas Gross sales - RLNG Gross sales - LPG air mix		125,884,032	75,205,473
		333,317,592	297,867,303
		3,982	-
		459,205,606	373,072,776
Sales tax - Indigenous gas		(16,034,047)	(10,588,827)
Sales tax - RLNG		(51,605,144)	(44,011,255)
Sales tax - LPG air mix		(612)	-
		(612)	(54,600,082)
		(67,639,803)	(54,600,082)
		391,565,803	318,472,694
17. TARIFF ADJUSTMENT
Indigenous gas		(34,876,875)	29,301,669
RLNG		4,824,411	8,211,828
		(30,052,464)	37,513,497

Sui Northern Gas Pipelines Limited

COST OF GAS SALES Opening stock of gas in pipelines Gas purchases: Southern system Northern system RLNG LPG	Quarter ended
	Un-audited	Un-audited
	September	September
	30, 2024	30, 2023
	(Rupees in thousand)
	19,045,561	18,247,043
	31,984,346 36,565,781 297,608,156 3,965	38,860,876
		42,460,767
		267,832,229
		-
	366,162,248	349,153,872
	385,207,809	367,400,915
Less: Gas internally consumed	3,387,181	3,346,122
Closing stock of gas in pipelines	40,783,202	29,167,884
	44,170,383	32,514,006
Distribution Cost	13,351,222	12,197,536
	354,388,648	347,084,445
19. OTHER OPERATING 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 claims Sale of tender documents Sale of scrap Liquidated damages recovered Bad debt recoveries Transportation Income Miscellaneous	9,367,818 484 25,612 341,907 33,350 1,057,428 681,641 - 3,549 203,255 174,893 182 442,270 12,605	7,902,354 699 23,567 516,956 73,554 1,083,800 574,401 56 3,075 73,381 22,049 720 287,310 23,190
	12,344,994	10,585,112
20. OTHER OPERATING EXPENSES Workers' Profit Participation Fund Exchange loss on gas purchases Loss on initial recognition of financial assets at fair value	313,989	319,761
	12,098	96
	1,415	151,951
	327,502	471,808

Sui Northern Gas Pipelines Limited

Note 21. Income tax and levy Levy Minimum tax differential	Quarter ended
	Un-audited Un-audited September September 30, 2024 30, 2023
	(Rupees in thousand)
	-	618,938
Income tax Current tax For the period Prior years	6,703,875 388,215	2,391,484 -
Deferred tax	7,092,090 (4,408,937)	2,391,484 (640,597)
	2,683,153	1,750,887
22. 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 - Right of use assets Amortization of intangible assets Employee benefits Amortization of deferred credit and contract liabilities Finance cost Return on bank deposits 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 Amortization of difference between initial and maturity amount Working capital change 22.1	5,965,783 4,580,590 870,438 45,874 1,385,352 (681,641) 9,777,906 (341,907) (33,350) (1,681,989) 1,415 (484) (17,540) 13,050,640	6,075,461 4,237,492 893,200 53,546 1,131,041 (574,401) 9,182,493 (516,956) (73,554) (917,683) 151,951 (699) (12,984) 11,761,073
	32,921,087	31,389,980

Sui Northern Gas Pipelines Limited

22.1 Working capital changes

(Increase) / decrease in current assets

Stores and spares parts Stock-in-trade

Trade debts

Loans and advances

Trade deposits and prepayments Other receivables

Quarter ended

Un-audited Un-audited

September September

30, 2024 30, 2023

(Rupees in thousand)

192,835

(21,737,641)

11,681,953

(5,614,315)

(1,360,591)

24,970,111

180,258

(10,920,841)

(6,796,775)

(1,682,668)

(655,938)

(38,861,046)

Increase in current liabilities

Trade and other payables

8,132,352

4,918,288

(58,737,010)

70,498,083

13,050,640

11,761,073

22.2 Cash and cash equivalents

Cash and bank balances Short term running finance

20,091,471

(120,950,918)

18,433,327

(108,456,328)

(100,859,447)

(90,023,001)

INCORPORATION OF TARIFF REQUIREMENTS
1. OGRA vide its decision dated June 21, 2018 on the Estimated Revenue Requirement ('ERR') of the Company for the year 2018-19 decided in consultation with the Federal Government and other licensees in the natural gas sector to revise the tariff regime including the rate of return which is to be based on Weighted Average Cost of Capital ('WACC') from the financial year 2018-19.
  OGRA in its decision dated October 06, 2025 for Final Revenue Requirement (FRR) for FY 2024-25 has reworked the Rate of Return on Average Net Assets (ROA) for the year 2024-25 at 21.25% as compared to the previous ROA rate of 26.22% determined for FY 2023-24.
  As per the tariff regime, the Company is required to earn an annual return of not less than the WACC on the value of its average fixed assets in operation (net of deferred credit), before corporate income taxes, interest and other charges on debt and after excluding interest, dividends and other non operating income and before incorporating the effect of efficiency benchmarks prescribed by OGRA.

During the period, the Company could not meet the benchmarks prescribed by the OGRA and as a result the return for the year on the aforesaid basis works out to be 15.61% (Sep 30, 2023: 17.07%). Among other disallowances made by the OGRA, the Company has also incorporated the effect of Unaccounted for Gas (UFG), which represents the volume difference of gas purchases and sales, amounting to Rs 666.956 million (Sep 30, 2023: Rs Nil), which is in excess of the new UFG prescribed benchmark of 0.36% (Sep 30, 2023: 0.36%) for transmission segment and 7.275% (Sep 30, 2023: 7.185%) for distribution segment.

Sui Northern Gas Pipelines Limited

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