Sui Northern Gas Pipelines LimitedPSX: SNGP

Transmission of Quarterly Financial Statements for the Period Ended September 30, 2025

Nov 28, 2025 at 10:41 AM UTC · Issued by Sui Northern Gas Pipelines Limited

Su Northern Gas Pipelines Limited

1st Quarter Accounts (Un-Audited) For the Period Ended September 30, 2025

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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 32

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

CDC Share Registrar Services Limited (CDCSRSL) 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, 2025. The Company has made a profit after tax amounting to Rs. 3,446 million compared to Rs. 3,283 million during the corresponding period last year. The earnings per share (EPS) for the period under review is Rs. 5.43 an increase from Rs.

5.18 for the same period last year. The summary of financial results for the period under review is given below: Summary of Financial Results

(Rs. in Million)

Profit before taxation 6,201

Provision for taxation (2,755)

Profit after taxation 3,446 The increase in profit for the period is primarily attributed to the following reasons:

Decrease in finance costs due to decrease in long term loans and downwards revision of interest rate.
Increase in return on average operating assets (ROA) due to steady increase in capex since last year.

Our country is facing unprecedented economic challenges and financial constraints. However, 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 36.13 KMs Transmission Pipelines with diameters ranging from 8" to 20" & 56" including Kotpalak Project. In addition to Transmission lines, 73.78 kms of Distribution mains were laid during the first quarter for the period ended on September 30, 2025 for improving pressure and extension of gas facility to RLNG consumers. The Company also laid 2 kms of Contract line during the period for M/s MOL.

ONGOING /FUTURE PROJECTS

20" dia X 13.6 KMs Transmission Pipeline from Existing Qadirpur Valve Assembly (QV-2)to Fauji Fertilizer line, Mirpur Mathelo.
Project aims to transport 105 MMCFD of RLNG from Qadirpur Valve Assembly (QV-2) to the Fauji Fertilizer Plant at Mirpur Mathelo. Laying of 20"dia X 13.6 KMs pipeline from QV-2 to Fauji Fertilizer Plant on 100 % cost sharing basis is in near to completion.
12" dia × 77 KMs Transmission Pipeline from Kot Palak CPF to D.I. Khan In order for the injection of 45 MMCFD gas from the KotPalak field of M/s Al-Haj Enterprises (Pvt.) Ltd. construction of 12'' dia x 77 KMs pipeline is in progress. This pipeline strengthens regional supply capacity and improves utilization of newly available gas resources.

03

Sui Northern Gas Pipelines Limited
18" dia x 84.8 KMs Transmission Pipeline from Daudkhel to Dhullian. laying of 18" dia × 84.8 km line from Daudkhel to Dhullian is in progress as a part of transmission system augmentation.
8" dia x 24 KMs Charsadda-Tangi Pipeline.
To achieve augmentation of the transmission system, laying of 8" dia x 24 Km Charsadda -Tangi pipeline is also in progress. Laying of this pipeline will provide uninterrupted supply of gas.
24" dia x 63.5 KMs from CV-25 to MP 15.03 (Mandra) Pipeline.
Project for laying of 24" dia x 63.5 for improving operational flexibility of the transmission network in Mandra and surrounding areas is in progress. It will strengthen the system's ability.
12" dia x 103 KMs DI Khan to Manjuwal Pipeline.

laying of 12" dia x 103 KMs pipeline from DI-Khan to Manjuwal are also planned to augment the transmission system. This pipeline is part of Kotpalak Project and laying of pipeline will help in improving system capacity.

ACKNOWLEDGEMENTS

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 28, 2025

Sui Northern Gas Pipelines Limited

Condensed Interim Statement of Financial Position As at September 30, 2025

EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES Authorized share capital	Note	Un-audited September 30, 2025	Audited June 30, 2025
		(Rupees in thousand)
		15,000,000	15,000,000
Issued, subscribed and paid up share capital		6,342,167	6,342,167
Revenue reserves		67,749,937	64,303,943
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 benefits 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		74,092,104	70,646,110 15,183,905 53,031 20,683,413 77,474,574 52,867,164 25,614,352 21,576,871 213,453,310 1,170,545,995 6,435,494 3,247,191 3,461,254 7,818,583 56,907 5,213,733 276,265 41,077,759 159,413,427 1,397,546,608 -
	4	12,058,571 82,569 20,583,073 81,759,598 52,383,822 25,639,658 22,436,739
	5
	6
		214,944,030
	7	1,168,335,234 6,143,474 3,247,191 2,793,922 8,318,583 28,557 7,657,609 274,949 41,373,860 165,212,673
	6
	8
	9
		1,403,386,052
	10	-
		1,692,422,186	1,681,646,028

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 Accrued interest Other receivables 14 Contract assets Sales tax recoverable Cash and bank balances 15	Un-audited September 30, 2025
	(Rupees in thousand)
		318,116,798 431,255 19,946,471 20,985,122 1,298,438 9,346,899 699,988 370,824,971 7,856,358 26,230,208 181,166,336 871,432 217,981 21,288 942,343,724 750,383 135,438,257 15,925,090 1,310,821,057
	318,901,826 424,676 19,090,058 27,314,683 1,248,614 9,732,441 718,988
	377,431,286
	8,487,676 25,829,893 240,335,715 3,021,598 647,407 28,883 891,238,078 750,383 126,938,786 17,712,481
	1,314,990,900
	1,692,422,186	1,681,646,028

Condensed Interim Statement of Financial Position As at September 30, 2025

Audited June 30, 2025

(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, 2025

Revenue from contracts with customers - Gas sales Tariff adjustment	Note 16 17	First quarter ended
		September	September
		30, 2025	30, 2024
		(Rupees in thousand)
		369,466,028	391,565,803
		(50,866,936)	(30,052,464)
Revenue inclusive of tariff adjustment		318,599,092	361,513,339
Less: Cost of gas sales	18	307,571,401	354,388,648
Gross profit		11,027,691	7,124,691
Other income	19	8,052,445	12,344,994
Operating income net of cost of gas sales Operating expenses Selling costs Administrative expenses Other expenses 20 Net impairment loss on financial assets		19,080,136	19,469,685
		3,428,146	2,929,369
		2,726,555	2,151,114
		364,304	327,502
		(179,812)	(1,681,989)
		6,339,193	3,725,996
Operating profit		12,740,943	15,743,689
Finance cost		6,539,539	9,777,906
Profit before income tax		6,201,404	5,965,783
Profit before income tax		6,201,404	2,683,153
Income tax	21	2,755,410	2,683,153
Profit for the period		3,445,994	3,282,630

Earnings per share Basic and diluted (In Rupees)		5.43	5.18

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, 2025

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:	First quarter ended
	September	September
	30, 2025	30, 2024
	(Rupees in thousand)
	3,445,994	3,282,630
	-	-
	-	-
Total comprehensive income for the period	3,445,994	3,282,630

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, 2025

Note

CASH FLOWS FROM OPERATING ACTIVITIES

Cash generated from operations 22 & 22.1 Finance cost paid

Payments of lease liabilities - interest Income tax paid

Employee benefits obligations / contributions paid Increase in security deposits

Receipts against government grants and consumer contributions

Decrease in long term loans

Increase in long term deposits and prepayments

First quarter ended

September 30, September 30, 2025 2024

(Rupees in thousand)

14,275,341

(5,447,280)

(794,970)

(6,641,088)

(938,881)

4,285,024

298,464

60,031

(19,000)

32,921,087

(10,343,441)

(885,679)

(3,248,012)

(906,233)

1,459,103

920,013

49,625

(4,110)

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

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

5,077,641

19,962,353

(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)

(5,876,925)

(49,847)

13,889

219,844

(5,693,039)

(2,625,334)

(769,807)

-(1,316)

(3,396,457)

Net (decrease) / increase in cash and cash equivalents

Cash and cash equivalents at the beginning of the period

(4,011,855)

(143,488,337)

11,605,144

(112,464,591)

Cash and cash equivalents at

the end of the period 22.2

(147,500,192)

(100,859,447)

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, 2025

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

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

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

Final dividend for the year

ended June 30, 2023 @

64,192,818

Rupees 4.5 per share - - -) (2,853,975) (2,853,975) (2,853,975)

Total comprehensive income from July 1, 2024 to September

30, 2024

-	-	-)	3,282,630	3,282,630	3,282,630
-	-	-)	-	-	-

Profit for the period Other comprehensive income

for the period

- - - 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

Balance as at September 30, 2024 (Un-audited)

Balance as at July 01,

2025 (Audited) 6,342,167 4,127,682 480,000 59,696,261 64,303,943 70,646,110

Total comprehensive income from July 1, 2025 to September 30, 2025

-	-	-	3,445,994	3,445,994	3,445,994
-	-	-	-	-	-
-	-	-)	3,445,994	3,445,994	3,445,994
6,342,167	4,127,682	480,000	63,142,255	67,749,937	74,092,104

Profit for the period Other comprehensive

income for the period

Balance as at September 30, 2025 (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, 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 IESCO 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 comprise of:
  - 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.
    In case requirements of the SOE Act or the SOE Policy differ from the Companies Act,
    11
    
    Sui Northern Gas Pipelines Limited
    
    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. The Securities and Exchange Commission of Pakistan (SECP) through SRO 1784(1)12024 dated November 04. 2024 has granted exemption from application of expected credit losses (ECL) method under IFRS 9 "Financial instruments" on financial assets due from GoP in respect of circular debt for the financial years ending on or before December 31, 2025, provided that the Company shall follow relevant requirements of IAS
  39 'Financial instruments" in respect of above referred financial assets during the exemption period.
  Ministry of Finance vide communication dated August 06, 2025 has advised to place the matter of the requisite exemptions before the Cabinet Committee on State Owned Entities (CCoSOEs), in terms of sub section (2) of section 3 of State Owened Enterprise (Governance and Operations) Act, 2023. Accordingly, Company has made a formal request to the Ministry of Energy (Petrolum Division) to place a summary before the CCoSOEs for grant of exemption. The matter is currently under consideration with the Ministry of Energy (Petrolum Division). Consequently, the Company has not recorded impact of aforesaid ECL on receivables in respect of circular debt in these condensed interim financial statements.
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, 2025. 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

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, 2025, except for the estimation of income tax (see note 3.5).
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, 2025, 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.
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, 2026 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.

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

Sui Northern Gas Pipelines Limited

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 September 30, 2025	Un-audited September 30, 2024
(Rupees in thousand)
50,866,936 (50,866,936) 54,312,930 Rupees 85.64 5.43 Un-audited September 30, 2025	30,052,464 (30,052,464) 33,335,094 Rupees 52.56 5.18 Audited June 30, 2025
(Rupees in thousand)
(890,760,274) 890,760,274	(941,627,210) 941,627,210

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

Earnings / (loss) per share

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

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

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.

Sui Northern Gas Pipelines Limited

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, 2025, with the exception of change in estimate that is required in determining the provision for income taxes as referred to in note 3.6.
Taxation

Note	Un-audited September 30, 2025	Audited June 30, 2025
4. LONG TERM FINANCING - SECURED Conventional financing 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	(Rupees in thousand)
	4,998,125	4,998,125
	3,541,777	5,312,667
	8,539,902	10,310,792
	1,555,556	2,333,333
	312,500	390,625
	10,000,000	10,000,000
	11,868,056	12,723,958
	20,407,958	23,034,750
Less: Transaction cost Less: Current portion shown under current liabilities	(30,804) (8,318,583)	(32,262) (7,818,583)
4.1	12,058,571	15,183,905
.1 The reconciliation of the carrying amount is as follows:
Opening balance	23,002,488	29,468,955
Repayments during the period/year	(2,625,334)	(6,466,467)
Repayments during the period/year		(6,466,467)
Closing balance	20,377,154	23,002,488
Current portion shown under current liabilities	(8,318,583)	(7,818,583)
	12,058,571	15,183,905

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.

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

Note 5. LONG TERM FINANCING - UNSECURED Local currency loans Current portion shown under current liabilities	Un-audited Audited September 30, June 30, 2025 2025
	(Rupees in thousand)
	111,126 (28,557)	109,938 (56,907)
	82,569	53,031

5.1

These loans carry effective mark-up at variable rates which ranges from 6.55% per annum to 9.80% per annum (June 30, 2025: 6.55% per annum to 14.10% per annum).

Note	Un-audited September 30, 2025	Audited June 30, 2025
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)
	25,639,658 5,353,330 790,144	25,614,352 5,617,589 817,905 32,049,846 (6,435,494)
	31,783,132 (6,143,474)	25,614,352 5,617,589 817,905 32,049,846 (6,435,494)
	25,639,658	25,614,352
Consumer contribution against: Completed jobs Jobs-in-progress Less: Accumulated amortization: Opening balance Amortization for the year/period		42,903,219 10,992,037 53,895,256 27,397,673 883,231 28,280,904
	43,012,819 11,180,900
	54,193,719
	28,280,904 273,157
	28,554,061
	25,639,658	25,614,352

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 September 30, 2025

(Rupees in thousand)

Note

Audited June 30, 2025

7. TRADE AND OTHER PAYABLES Creditors for:
Gas	7.1	1,126,059,187	1,126,981,787
Supplies Accrued liabilities Provident fund		4,799,993 15,044,294 324,713	4,877,768 15,845,844 -
Advance from SSGCL against cost equilization 20,000,000			20,000,000
Gas infrastructure development cess payable 7.2 8,428			7,457
Interest free deposits repayable on demand 1,196,047			1,254,903
Earnest money received from contractors 289,536			291,589
Workers' profit participation fund 7.3 613,036			1,286,647
1,168,335,234			1,170,545,995

7.1

7.2

Included in trade payables is an amount of Rs 293,642.021 million (Jun 30, 2025: Rs 307,928.060 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. 133,273.075 million (June 30, 2025: Rs. 133,273.595 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	Un-audited Audited September 30, June 30, 2025 2025
	(Rupees in thousand)
	1,286,647 326,389 (1,000,000)	1,900,813 1,286,647 (1,900,813)
Closing balance	613,036	1,286,647
8. INTEREST / 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	488,469 197,844 4,622,352 5,725,445 30,339,750	637,248 197,562 4,705,018 5,198,181 30,339,750
	41,373,860	41,077,759
9. Short Term Borrowing From Financial Institutions - Secured
Short Term Borrowing From Financial Institutions - Secured	165,212,673	159,413,427

9.1

The total limit of various financing facilities available from banks against short-term running finance facilities aggregate to Rs 180,525 million (Jun 30, 2025: Rs 180,525 million) out of which the Company has utilized Rs 165,212.673 million (Jun 30, 2025: Rs 159,413.427 million). This amount includes financing facilities utilized under the Islamic mode, which amount to Rs 67,970.530 million (Jun 30, 2025: Rs 67,970.530 million). The applicable markup rates during the period ranging from one to three months KIBOR plus 25 basis points to minus 15 basis points (Jun 30, 2025: one to six months KIBOR plus 50 basis points to minus 401 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 171,368.343 million (Jun 30, 2025: Rs 171,368.343 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 11.12% to 11.65% (Jun 30, 2025: 8.75% to 21.99%) 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, 2025.

10.2 Commitments: a) Capital Commitments Property, plant and equipment Intangible assets Stores and spares	Note	Un-audited September 30, 2025	Audited June 30, 2025
		(Rupees in thousand)
		629,859 66,431 5,777,388	530,594 66,984 8,867,902
		6,473,678	9,465,480
b) Other Commitments		1,201,601	1,072,706
11. PROPERTY, PLANT AND EQUIPMENT
Operating fixed assets
Tangible
Opening book value		262,160,072	234,173,477
Additions during the period/year	11.1	2,515,448	47,553,231
		264,675,520	281,726,708 (5,178) (19,561,458) (19,566,636)
Book value of PPE disposed off during the period/year	11.2	(7,270)
Depreciation charged during the period/year		(5,170,798)
		(5,178,068)
Closing book value		259,497,452	262,160,072
Capital work-in-progress	11.3	59,404,374	55,956,726
		318,901,826	318,116,798

Sui Northern Gas Pipelines Limited

Note		Un-audited September 30, 2025	Audited June 30, 2025
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		(Rupees in thousand)
		-10,267 184,450 622,211 1,063,377 1,962 -416,352 5,415 3,786 177,279 30,349	743,569 47,348 9,137,371 23,057,220 10,847,929 94,847 1,813,126 457,556 78,096 186,873 703,736 385,560
		2,515,448	47,553,231
11.2 Disposals during the period / year Buildings and civil construction on freehold land Transport vehicles Computers and ancillary equipment		-7,270 -	9 5,136 33
		7,270	5,178
11.3 Capital work-in-progress Transmission system Distribution system Stores and spares including in transit Rs. 252.494 million (June 30, 2025: Rs. 2,469.495 million) Advances for land and other capital expenditure		10,354,129	8,006,354
		30,176,594	25,512,286
		16,471,404	20,121,876
		2,402,247	2,316,210
		59,404,374	55,956,726
STOCK-IN-TRADE Gas in pipelines Gas in floating storage regassification unit (FSRU)/ Held	12.1	8,844,445	10,545,554
	12.1	16,985,448	15,684,654
		25,829,893	26,230,208

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.

Sui Northern Gas Pipelines Limited

Note

13. TRADE DEBTS

Considered good: Secured Unsecured Deferred gas sales

Un-audited Audited

September 30, June 30, 2025 2025

(Rupees in thousand)

134,938,115

139,685,676

(608,884)

92,013,018

123,615,944

(603,621)

13.1

Less: Allowance for expected credit losses

274,014,907

(33,679,192)

215,025,341

(33,859,005)

240,335,715

181,166,336

13.1 Included in trade debts are amounts receivable from government-owned power generation companies, independent power producers, and Sui Southern Gas Company Limited (SSGCL), totalling Rs 90,262.796 million (2025: Rs 52,499.415 million), along with interest of Rs 40,229.955 million (2025: Rs 39,111.308 million) due to delayed payments.

Trade and other payables, as referred to in note 7, include an amount of Rs 1,010,307.714 million (2025: Rs 1,046,406.808 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 (2025: Rs 24,841.653 million) and interest on delayed payments of the Gas Development Surcharge amounting to Rs 4,101.732 million (2025: Rs 4,101.732 million) payable to the Government of Pakistan, as referred to in note 8.

OGRA has acknowledged the liabilities related to interest payable to gas creditors in its various determinations but has not included these amounts in the calculated shortfall until the eventual payment or settlement of the circular debt by the Government of Pakistan. The unpaid interest of Rs 517,299.688 million (2025: Rs 492,719.661 million), payable to government-owned and other entities, has not been recognized in these financial statements. The settlement of both principal and interest on delayed payments is contingent upon the resolution of the inter-corporate circular debt by the Government of Pakistan. Furthermore, the recoverability of amounts totalling Rs 534,462.191 million (2025: Rs 541,270.592 million) and Rs 356,298.083 million (2025: Rs 400,356.618

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

Sui Northern Gas Pipelines Limited

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 Audited September 30, June 30, 2025 2025
	(Rupees in thousand)
		108,945 108,945 -541,270,592 400,356,618 46,236 670,278
	108,945 108,945
	-534,462,191 356,298,083 46,236 431,568
	891,238,078	942,343,724
14.1 Tariff adjustment (indigenous) Opening balance Recognised for the period/year	541,270,592 (6,808,401)	530,702,747 10,567,845
14.2	534,462,191	541,270,592

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:

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 Cost of gas 14.2.5	Un-audited September 30, 2025	Audited June 30, 2025
	(Rupees in thousand)
	19,000 744,000 (264,557) 81,382 3,083,147	19,000 744,000 (264,557) 81,382 3,083,147
	3,662,972	3,662,972

Sui Northern Gas Pipelines Limited

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.
This represents the cost of RLNG diverted to system/indigenous gas consumers, along with the General Sales Tax (GST) that would have been charged to exempt consumers but was not claimed by the Company at the time of filing the FRR. As GST has become part of the cost of supply due to the exemption applicable to consumers, the Company has filed a review appeal and remains confident of a favorable outcome.

14.3 Tariff adjustment (RLNG) Opening balance Recognised for the period/year	Un-audited September 30, 2025	Audited June 30, 2025
	(Rupees in thousand)
	400,356,618 (44,058,535)	334,694,507 65,662,111
Closing balance	356,298,083	400,356,618

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, 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, 10,613,517 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 OGRA. Federal Government released subsidy amounting to Rs 116,057.910 million till September 30, 2025.

14.4

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:

Sui Northern Gas Pipelines Limited

Note Effect of interest income recognized in prior periods 14.4.1 Cost of gas 14.4.2	Un-audited Audited September 30, June 30, 2025 2025
	(Rupees in thousand)
	25,724,546 (2,933,981)	25,724,546 (2,933,981)
	22,790,565	22,790,565

14.4.1

14.4.2

'The Company in line with the Federal Government's decision on the case submitted by the Power Division dated January 14, 2025 and March 19, 2025 has approved the settlement mechanism for the reversal of late payment surcharge income against GPPs and certain IPPs. Accordingly, net amount of late payments surcharge (LPS) recognized earlier on account of delayed payments by Government Owned Power Producers (GPPs) and Independent Power Producers (IPPs) amounting to Rs 25,724.546 million has been derecognized. This amount has not been disallowed by OGRA; instead, it has been pended. Company will take up the matter with OGRA and is confident of a favourable outcome.

This represents the cost of RLNG diversion to system gas consumers not claimed by the Company at the time of filing of FRR. Company has filed a review appeal and is confident of a favourable outcome.

15. CASH AND BANK BALANCES At banks: Deposit accounts Current accounts	Un-audited September 30, 2025	Audited June 30, 2025
	(Rupees in thousand)
	11,675,524 221,775	10,090,280 206,706
Collection accounts In hand	11,897,299 6,107,021 3,503	10,296,986 5,921,836 1,610
Loss allowance	18,007,823 (295,342)	16,220,432 (295,342)
	17,712,481	15,925,090

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 6,623.246 million (June 30, 2025: Rs 7,325.862 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.

Sui Northern Gas Pipelines Limited

16. REVENUE FROM CONTRACTS WITH CUSTOMERS - GAS SALES Gross sales - Indigenous gas Gross sales - RLNG Gross sales - LPG air mix	(Rupees in thousand)
	117,668,505 314,963,708 9,579	125,884,032 333,317,592 3,982
	432,641,792	459,205,606
Sales tax - Indigenous gas	(15,545,116)	(16,034,047)
Sales tax - RLNG	(47,629,175)	(51,605,144)
Sales tax - LPG air mix	(1,473)	(612)
	(1,473)	(67,639,803)
	(63,175,764)	(67,639,803)
	369,466,028	391,565,803
17. TARIFF ADJUSTMENT
Indigenous gas	(6,808,401)	(34,876,875)
RLNG	(44,058,535)	4,824,411
	(50,866,936)	(30,052,464)
COST OF GAS SALES Opening stock of gas in pipelines Gas purchases: Southern system Northern system RLNG LPG	26,230,208	19,045,561 31,984,346 36,565,781 297,608,156 3,965 366,162,248
	56,588,152 28,886,390 210,432,553 9,479
	295,916,574
Less: Gas internally consumed Closing stock of gas in pipelines Distribution Cost	322,146,782	385,207,809
	2,795,575	3,387,181
	25,829,893	40,783,202
	28,625,468	44,170,383
	14,050,087	13,351,222
	307,571,401	354,388,648

First quarter ended

Un-audited September 30, 2025

September 30, 2024

Un-audited

Sui Northern Gas Pipelines Limited

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 Sale of tender documents Sale of scrap Liquidated damages recovered Bad debt recoveries Transportation Income Miscellaneous	First quarter ended
	Un-audited September 30, 2025	Un-audited September 30, 2024
	(Rupees in thousand)
	5,044,623 150 28,920 227,439 6,618 1,072,504 756,350 6,972 206,367 19,041 424 668,555 14,482	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
	8,052,445	12,344,994
20. OTHER EXPENSES Workers' Profit Participation Fund Exchange loss on gas purchases Loss on initial recognition of financial assets at fair value	326,389	313,989
	32,487	12,098
	5,428	1,415
	364,304	327,502
INCOME TAX Current tax For the period Prior years	9,084,964	6,703,875
INCOME TAX Current tax For the period Prior years	-	388,215
	9,084,964	7,092,090
Deferred tax	(6,329,554)	(4,408,937)
	2,755,410	2,683,153

Sui Northern Gas Pipelines Limited

First quarter ended

Un-audited Un-audited

September September

30, 2025 30, 2024

Note

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 on right of use 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 22.1	(Rupees in thousand)
	6,201,404 5,170,798 858,548 56,426 1,327,031 (756,350) 6,539,539 (227,439) (6,618) (179,812) 5,428 (150) (15,635) (4,697,829)	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
	14,275,341	32,921,087
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 short term prepayments Other receivables	(631,318) 400,315 (58,989,567) (2,150,166) (429,426) 59,605,114	192,835 (21,737,641) 11,681,953 (5,614,315) (1,360,591) 24,970,111
Increase / (decrease) in current	(2,195,048)	8,132,352
liabilities:
Trade and other payables	(2,502,781)	4,918,288
	(4,697,829)	13,050,640
22.2 Cash and cash equivalents
Cash and bank balances	17,712,481	20,091,471
Short term running finance	(165,212,673)	(120,950,918)
	(147,500,192)	(100,859,447)

Sui Northern Gas Pipelines Limited

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% and onwards, 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.
2. During the period, the Company could not meet the benchmarks prescribed by the OGRA and as a result the return for the period on the aforesaid basis works out to be 12.85% (Sep 30, 2024: 15.61%). 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 1,108.877 million (Sep 30, 2024: Rs 666.956 million), which is in excess of the new UFG prescribed benchmark of 0.36% (Sep 30, 2024: 0.36%) for transmission segment and 7.275% (Sep 30, 2024: 7.275%) for distribution segment.

TRANSACTIONS WITH ASSOCIATES AND RELATED PARTIES

Related parties on the basis of common directorship of the Company comprise of associated companies. These also includes state-controlled entities, staff retirement benefit plans and the Company's directors and key management personnel. Details of significant transactions with these related parties in these condensed interim financial statements are as follows:

Transactions during the period

Gas sales

Purchase of materials Purchase of gas, regasification &

transportation services Service charges

Profit received on bank deposits Finance cost

Transportation income Distributor margin Insurance expenses Insurance claims received

Contributions to defined contribution plans Contributions to defined benefit plans Dividend paid

Honorarium / Meeting Fee paid to directors Remuneration and benefits paid to key

management personnel

Basis of relationship

Un-audited September 30, 2025

Un-audited September 30, 2024

(Rupees in thousand)

179,097,150

1,656,402

290,082,993

39,465

1,418

142,211

2,776

(1,035)

199,864

111,560

228,807

1,413,202

-2,700

125,316

166,599,752

3,046,457

358,997,050

32,062

12,423

-2,294

3,103

341,143

56,159

220,830

1,495,431

1,152,475

6,700

90,739

Common directorship / Gop holdings Common directorship / Gop holdings

Common directorship / Gop holdings Common directorship / Gop holdings Common directorship Common directorship Common directorship / Gop holdings Common directorship / Gop holdings Gop holdings

Gop holdings Common management Common management Common directorship / Gop holdings Director

Key mangement personnel

Sui Northern Gas Pipelines Limited

Un-audited September 30, 2025	Audited June 30, 2025
(Rupees in thousand)
88,230,125	66,142,358
1,100,286,119	1,118,937,623

Period end balances
Receivable from related parties Payable to related parties

FINANCIAL RISK MANAGEMENT
The Company's activities expose it to a variety of financial risks: market risk (including currency risk, other price risk and interest rate risk), credit risk and liquidity risk.
These condensed interim financial statements do not include all financial risk management information and disclosures required in the annual financial statements, and should be read in conjunction with the Company's annual financial statements for the year ended June 30, 2025.
There have been no significant changes in the risk management policies since the year ended June 30, 2025.
1. Contractual Maturities

The contractual maturities of the Company's financial liabilities were as follows:

Less than 1 year

Between 1 and 5 years

Over 5 years

Contractual cash flows

Carrying Amount

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

Security deposits	-	81,759,598	-	81,759,598	81,759,598
Unclaimed dividend	274,949	-	-	274,949	274,949

As at September 30, 2025

Interest / mark-up accrued on loans and other payables

Long term financing Trade and other payables Short term borrowings Lease liabilities

20,459,723

8,573,561

1,167,571,153

165,212,673

6,447,875

1,368,539,934

-15,038,315

-22,892,152

119,690,065

-2,486,626

-3,952,727

6,439,353

20,459,723

26,098,502

1,167,571,153

165,212,673

33,292,754

1,494,669,352

20,459,723

20,377,154

1,167,571,153

165,212,673

23,376,995

1,479,032,245

Security deposits	-	77,474,574	-	77,474,574	77,474,574
Unclaimed dividend	276,265	-	-	276,265	276,265

As at June 30, 2025

Interest / mark-up accrued on loans and other payables

Long term financing Trade and other payables Short term borrowings Lease liabilities

41,077,759

10,418,659

1,169,100,274

159,413,427

6,477,304

1,386,763,688

-18,046,328

-23,108,162

118,629,064

-1,000,917

-5,267,636

6,268,553

41,077,759

29,465,904

1,169,100,274

159,413,427

34,853,102

1,511,661,305

41,077,759

23,165,457

1,169,100,274

159,413,427

24,144,667

1,494,652,423

Sui Northern Gas Pipelines Limited

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