Transmission of Quarterly Report for the Period Ended 31 December 2025

Unconsolidated Condensed Interim Financial Information (Un-Audited) for the Half year ended December 31, 2025

AS ON DECEMBER 31, 2025

Mr. Asif Inam Chairman

Ms. Saira Najeeb Ahmed Director Mr. Usman Ahmed Chaudhry Director Mr. Muhammad Dawood Bazai Director Mr. Navaid Hasib Malik Director

Mr. Zuhair Siddiqui Director Ms. Salima Amin Feerasta Director Mr. Khalid Rahman Director

Mr. Muhammad Akram Director Mr. Muhammad Rehan Hashmi Director Mr. Muhammad Ali Khan Director

ACTING MANAGING DIRECTOR

Mr. Amin Rajput

COMPANY SECRETARY

Mr. Fawad Ahmed Khan

AUDITORS

M/s. BDO Ebrahim & Co., Chartered Accountants

LEGAL ADVISOR

M/s. Liaquat Merchant Associates (LMA)

REGISTERED OFFICE

SSGC House, Sir Shah Suleman Road

Gulshan-e-Iqbal, Block 14, Karachi - 75300, Pakistan

CONTACT DETAILS

Ph: 92-21-99021000

Fax: 92-21-99224279

Email: info@ssgc.com.pk Web: https://www.ssgc.com.pk

SHARE REGISTRAR

CDC Share Registrar Services Limited, CDC House, 99-B, Block B, SMCHS,

Main Sharah-e-Faisal, Karachi. Ph: 021-111-111-500

BOARD HUMAN RESOURCE AND REMUNERATION & NOMINATION COMMITTEE

Mr. Asif Inam Chairman

Ms.Saira Najeeb Ahmed Member

Mr. Usman Ahmed Chaudhry Member

Mr. Navaid Hasib Malik Member

Ms. Salima Amin Feerasta Member

Mr. Muhammad Dawood Bazai Member

BOARD FINANCE AND PROCUREMENT COMMITTEE

Ms. Saira Najeeb Ahmed Chairperson

Mr. Khalid Rahman Member

Mr. Navaid H. Malik Member

Mr. Usman Ahmed Chaudhry Member

Ms. Salima Amin Feerasta Member

BOARD AUDIT COMMITTEE

Mr. Khalid Rahman Chairman

Ms. Saira Najeeb Ahmed Member

Mr. Usman Ahmed Chaudhry Member

Ms. Salima Amin Feerasta Member

Mr. Zuhair Siddiqui Member

BOARD RISK MANAGEMENT, LITIGATION AND HSEQA COMMITTEE

Mr. Muhammad Rehan Hashmi Chairman

Mr. Muhammad Dawood Bazai Member

Mr. Navaid Hasib Malik Member

Mr. Khalid Rahman Member

Mr. Muhammad Akram Member

Ms. Salima Amin Feerasta Member

BOARD SPECIAL COMMITTEE ON UFG

Mr. Zuhair Siddiqui Chairman

Mr. Usman Ahmed Chaudhry Member

Mr. Muhammad Dawood Bazai Member

Mr. Muhammad Ali Khan Member

Mr. Muhammad Rehan Hashmi Member

Mr. Muhammad Akram Member

FOR THE HALF YEAR PERIOD ENDED DECEMBER 31, 2025

Financial Overview

The Board of Directors of SSGC is pleased to present the interim financial statements for the period ended December 31, 2025.

During the first half of FY 2025-26, SSGC maintained the already achieved improvement in operational performance and financial recovery. The Key highlight was the Profit despite strict challenges due to drastic reduction in bulk business (Captive Power Plants) and additional supplies to Domestic Sector in Balochistan due to winter season, reflecting commitment to operational discipline and business ethics. The Company reported a Profit after Tax of Rs. 290 million and Earnings per Share of Rs. 0.33.

Financial Highlights

Despite challenging operating environment, SSGC's strategic focus on enhancing operational efficiencies has led to maintain UFG numbers during the period. . Over the period from FY 2018-19 to FY 2024-25, SSGC achieved a cumulative reduction of approximately 42 BCF in UFG, demonstrating consistent efforts to address operational challenges.

During the period Jul-Dec 2025, despite massive reduction in gas sales to Bulk and Industrial sectors primarily due to the imposition of Off-grid Levy on Captive Power Plants (CPPs) and related reduced demand, the Company managed to maintain the volumetric unaccounted-for-Gas (UFG) at par comparing to corresponding period last year. Volumetric UFG stood at 14.14 BCF during the instant period compared to 14.09 BCF in Jul-Dec 2024.

However, owing to substantial depletion in indigenous natural gas supplies resulted in an approximate 10 BCF reduction in total gas purchases, and the percentage UFG maintained at 12.27%, compared to 11.30% in the same period last year. This minor increase is predominantly attributable to a reduced gas input base (denominator effect) rather than any deterioration in UFG volumes or system efficiency.

Despite above briefed circumstances, management remains fully committed to executing targeted reduction strategies to close the financial year with net UFG savings across both volumetric and percentage metrics.

Recognizing the critical impact of UFG on overall profitability, the Board of Directors, in close coordination with management, continues to support the UFG related initiatives to achieve sustainable, long-term loss reductions. Targeted measures are being pursued to curtail UFG levels throughout the upcoming quarters of FY 2025-26.

Profitability and Financial Adjustments

SSGC's profitability is primarily derived from the Guaranteed Return Formula prescribed by OGRA, which is based on the Weighted Average Cost of Capital (WACC). However, adjustments related to efficiency benchmarks, including UFG, Human Resource Benchmark Costs, and Provision for Doubtful Debts, impact the bottom line.

The Weighted Average Cost of Gas (WACOG), largely based on USD, has been a significant factor in the Company's financial challenges. During the half year, the WACOG increased by 3.96%, from Rs. 1,107.81 per MCF to Rs. 1,151.64 per MCF, resulting in incremental UFG disallowance of Rs. 234 million.

In line with OGRA's determination for FY 2024-25 issued on October 06, 2025, UFG disallowance absorbed in this quarter amounted to Rs. 6,164 million (December 2024: Rs. 5,251 million). Finance cost for the period was Rs. 8,055 million (December 2024: Rs. 6,713 million).

Operational Enhancements

SSGC's maintained its steadfast commitment to deliver optimum gas supplies, improved customers satisfaction, and minimizing UFG losses through the following measures:

SSGC has consistently enhanced its organizational structure by implementing measures such as upskilling, training, and optimizing resource utilization. The Small Business Unit (SBU) model, already operational in Karachi and Balochistan, has now been expanded across the franchise area.

The gas supplies to JJVL plant started in November 2025.

Major Projects and Future Outlook

SSGC remained committed for achieving operational and financial sustainability. Key projects and initiatives include:

• Rehabilitation: An annual target of 2,500 km has been set for FY 2025-26, with average monthly progress exceeding 200 km under close monitoring of rehabilitation and reinforcement projects. During the July-December 2025, approximately 1,250 kms of the distribution network has been rehabilitated, covering major areas including Malir, North Karachi, North Nazimabad, FB Area, and various locations in Upper Sindh. In addition, decommissioning of old rehabilitated networks has been completed in Garden, North Nazimabad, Lyari, and North Karachi, while work in Malir is currently in progress.

• Gas Theft: Approximately 26,000 theft connections have been disconnected, resulting in a cumulative gas volume claim of 3,100 MMCF on Supply Mains. In addition, 50,505 locations have been disconnected involving direct theft.

• Pressure Management and Customer Service: Pressure management has been significantly improved through network segmentation and GIS visibility. Customer service standards have also been enhanced, with 90 percent of low-pressure complaints resolved during the Jul-Dec of FY 2025.

• Technology and Innovation: SSGC is continuously exploring new initiatives in detecting gas leakages with more precision and accuracy and locating underground buried synthetic/ PE pipelines. The commitments have been made for the Mobile Gas Leak Detection system with ethane and methane selectivity and synthetic pipeline locators, along with the TBS and SMS Automation and Control System (Phase II) covering 47 Town Border Stations and 16 Sales Meter Stations.

• Billing Improvements: Surveys of suspected gas meters have been conducted to identify faulty Meters and enhance domestic sales. In addition, technology-based billing mobile dashboards have been developed to monitor live meter readings and analyze billing data, theft detection and meter readers performance enabling timely identification and resolution of shortcomings.

Acknowledgements

The Board extends its gratitude to the shareholders, valued customers, and employees for their unwavering support and dedication. We also acknowledge the guidance and assistance provided by the Government of Pakistan, the Ministry of Energy (Petroleum Division), and OGRA in enabling the Company to achieve its objectives.

On behalf of the Board.

Asif Inam

Chairperson

Dated: February 26, 2026

Place: Karachi

M. Amin Rajput

Managing Director

INDEPENDENT AUDITOR'S REVIEW REPORT

TO THE MEMBERS OF SUI SOUTHERN GAS COMPANY LIMITED REPORT ON REVIEW OF CONDENSED UNCONSOLIDATED INTERIM FINANCIAL

STATEMENTS

Introduction

We have reviewed the accompanying condensed unconsolidated interim statement of financial position of SUI SOUTHERN GAS COMPANY LIMITED ("the Company") as at December 31, 2025 and the related condensed unconsolidated interim statement of profit or loss, condensed unconsolidated interim statement of comprehensive income, condensed unconsolidated interim statement of changes in equity, and condensed unconsolidated interim statement of cash flows, and notes to the condensed unconsolidated interim financial statements for the half year then ended (here-in-after referred as the "condensed unconsolidated interim financial statements"). Management is responsible for the preparation and presentation of these condensed unconsolidated interim financial statements in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these condensed unconsolidated interim financial statements based on our review.

Scope of Review

Except as explained in the following paragraph, we conducted our review in accordance with international Standard on Review Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

1. As disclosed in notes 7.1 and 7.2 to these condensed unconsolidated interim financial statements, trade debts include receivables of Rs. 26,289 million and Rs. 21,770 million from K-Electric Limited (KE) and Pakistan Steel Mills Corporation (Private) Limited (PSML), respectively. Significant portion of such receivables include overdue amounts, which have been considered good by management and classified as current assets in the condensed unconsolidated interim financial statements. Further, KE and PSML have disputed the Late Payment Surcharge (LPS) on their respective outstanding balances, as disclosed in the notes to the condensed unconsolidated interim financial statement as unrecognized LPS. As a result, management has decided to recognize LPS from these entities on a receipt basis, effective July 01, 2012.

   Due to the adverse operational and financial conditions of PSML and disputes with KE and PSML with the Company on LPS, and large accumulation of their respective overdue amounts, we were unable to determine the extent to which the total amounts due from KE and PSML were likely to be recovered including the timeframe over which such recovery will be made.

2. As disclosed in note 3.2 to the condensed unconsolidated interim financial statements, the Company was exempt to comply with the requirements of IFRS 14- Regulatory Deferral Accounts in relation to the preparation of the financial statements till June 30, 2024 by the Securities and Exchange Commission of Pakistan (SECP) vide its letter SMD/PRDD/Comp/(4)/2021/168 dated December 03, 2024. The Company has taken up the matter with concerned authorities to seek further exemption from the applicability of the aforesaid IFRS vide its letter MD/MoE/12/2025 dated June 17, 2025. In the absence of the related exemption for the current reporting period, the Company has not complied with the requirements of IFRS 14 including necessary accounting adjustments, presentation and related disclosure requirements necessary to be incorporated in these condensed unconsolidated interim financial statements. Had the Company incorporated the consequential accounting effects including related disclosures, the reported balances of the Tariff adjustment in other receivable and trade and other payable (note 9.1 and 13.3), Tariff adjustment amount in net revenue (note 17) and Earnings per share (note 23) would have required adjustments, effect of which remains indeterminable.

Qualified Conclusion

Except for the adjustments, to the condensed unconsolidated interim financial statements that we might have become aware of had it not been for the situation described above, based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed unconsolidated interim financial statements as at and for the half year ended December 31, 2025 are not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.

Emphasis of Matter

We draw attention to the following:

1. note 16.1 to the condensed unconsolidated interim financial statements which inter alia describe that the Company is subject to various material litigations and claims pending adjudication in different courts and forums. The outcome of these cases is uncertain and beyond management's control;

2. note 13.2 to the condensed unconsolidated interim financial statements which describe that the Company has not recognized the accrued markup up to December 31, 2025 amounting to Rs. 428,977 million relating to Government Controlled E&P Companies based on Government advice and a legal opinion.

Our conclusion is not modified in respect of the above stated matters.

Other Matter

Pursuant to the requirement of Section 237 (1) (b) of the Companies Act, 2017, only cumulative figures for the six-month, presented in the second quarter accounts are subject to a limited scope review by the statutory auditors of the Company. Accordingly, the figures of the condensed unconsolidated interim statement of profit or loss and condensed unconsolidated interim statement of comprehensive income for the three months period ended December 31, 2025 have not been reviewed by us.

The engagement partner on the review resulting in this independent auditor's review report is Muhammad Nadeem.

Dated: 27 February, 2026 Place: Karachi

UDIN: RR202510110hSnzw2GRq

M/s BDO Ebrahim & Co. Chartered Accountants

CONDENSED UNCONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION

As at December 31, 2025

ASSETS

December 31, June 30,

2025 2025

(Unaudited) (Audited) Note --------(Rupees in '000)--------

Non-current assets

Property, plant and equipment 5

Intangible assets Right of use assets Deferred taxation

Long term investments 6

Long term loans Long term deposits

Total non-current assets

Current assets

Stores, spares and loose tools Stock-in-trade

Customers' installation work in progress

Trade debts 7

Loans and advances

Advances, prepayments and deposits

Interest accrued 8

Other receivables 9

Taxation - net

Cash and bank balances Total current assets Total assets

The annexed notes 1 to 33 form an integral part of these condensed unconsolidated interim financial statements.

Asif Inam

Chairman

Muhammad Amin Rajput

Managing Director

Wajeeh Uddin Sheikh

CONDENSED UNCONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION

As at December 31, 2025

EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

Authorised Share Capital

Issued, subscribed and paid-up capital

Reserves

Capital Reserves

Surplus on revaluation of property plant and equipment Other reserves

Revenue Reserves

December 31, June 30,

2025 2025

(Unaudited) (Audited) Note --------(Rupees in '000)--------

LIABILITIES

Non-current liabilities

Long term financing 10

Security deposit Employee benefits

Payable against transfer of pipeline

Deferred credit 11

Contract liabilities 12

Lease liability

Long term advances

Total non-current liabilities

Current liabilities

Current portion of:

Long term financing 10

Payable against transfer of pipeline

Deferred credit 11

Contract liabilities 12

Lease liabilities

Trade and other payables 13

Short term borrowings 14

Unclaimed dividend

Interest accrued 15

Total current liabilities Total liabilities

Total equity and liabilities

CONTINGENCIES AND COMMITMENTS 16

The annexed notes 1 to 33 form an integral part of these condensed unconsolidated interim financial statements.

Asif Inam

Chairman

Muhammad Amin Rajput

Managing Director

Wajeeh Uddin Sheikh

CONDENSED UNCONSOLIDATED INTERIM STATEMENT OF PROFIT OR LOSS

For the Half year and Quarter ended December 31, 2025 (unaudited)

Note

Half year ended Quarter ended December 31, December 31, December 31, December 31,

2025 2024 2025 2024

--------------------(Rupees in '000)--------------------

The annexed notes 1 to 33 form an integral part of these condensed unconsolidated interim financial statements.

Asif Inam

Chairman

Muhammad Amin Rajput

Managing Director

Wajeeh Uddin Sheikh

CONDENSED UNCONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME

For the Half year and Quarter ended December 31, 2025 (unaudited)

Half year ended Quarter ended December 31, December 31, December 31, December 31,

The annexed notes 1 to 33 form an integral part of these condensed unconsolidated interim financial statements.

Asif Inam

Chairman

Muhammad Amin Rajput

Managing Director

Wajeeh Uddin Sheikh

CONDENSED UNCONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY

For The Half year ended December 31, 2025 (unaudited)

-----------------------------------------------------(Rupees in '000)-----------------------------------------------------

The annexed notes 1 to 33 form an integral part of these condensed unconsolidated interim financial statements.

Asif Inam

Chairman

Muhammad Amin Rajput

Managing Director

Wajeeh Uddin Sheikh

CONDENSED UNCONSOLIDATED INTERIM STATEMENT OF CASH FLOW

For The Half year ended December 31, 2025 (unaudited)

CASH FLOW FROM OPERATING ACTIVITIES

Half Year ended December 31, December 31,

2025 2024

Note --------(Rupees in '000)--------

Profit before taxation

Cash generated from operations 24

Financial charges paid

Employee benefits - post-retirement medical benefit Payment for retirement benefits

Long term deposits

Loans and advances to employees Interest income received

Income taxes paid

Net cash from operating activities

CASH FLOW FROM INVESTING ACTIVITIES

Acquisition for property, plant and equipment Payments against transfer of pipeline

Proceeds from sale of property, plant and equipment Dividend received

Net cash (used in) investing activities

CASH FLOW FROM FINANCING ACTIVITIES

Repayments of loans

Proceeds from consumer finance Repayment of consumer finance Dividend paid

Repayment of lease liability

Net cash (used in) financing activities

Net decrease in cash and cash equivalents

Cash and cash equivalents at beginning of the period

Cash and cash equivalents at end of the period 25

The annexed notes 1 to 33 form an integral part of these condensed unconsolidated interim financial statements.

Asif Inam

Chairman

Muhammad Amin Rajput

Managing Director

Wajeeh Uddin Sheikh

NOTES TO THE CONDENSED UNCONSOLIDATED INTERIM FINANCIAL STATEMENTS

For The Half year ended December 31, 2025 (unaudited)

1. STATUS AND NATURE OF BUSINESS

   1. Sui Southern Gas Company Limited ("the Company") is a public limited Company incorporated in Pakistan under the Companies Act, 2017 (repealed Companies Ordinance, 1984) and is listed on Pakistan Stock Exchange. The Company came into being on March 30, 1989 after the amalgamation of Karachi Gas Company, Indus Gas Company and Sui Gas Transmission Company. The main activity of the Company is transmission and distribution of natural gas in Sindh and Balochistan. The Company is also engaged in certain activities related to the gas business including the manufacturing and sale of gas meters, LPG air mix and construction contracts for laying of pipelines.

      These condensed unconsolidated interim financial statements are separate than condensed consolidated interim financial statements of the Company in which investment in subsidiary has been accounted for at cost less accumulated impairment losses, if any.

      The registered office of the Company is situated at SSGC House, Sir Shah Muhammad Suleman Road, ST-4/B, Block 14, Gulshan- e-Iqbal, Karachi. The meter manufacturing plant is situated at its' registered office.

      Region Address

      Karachi West Plot No. F-36 and F-37 SITE Area, Karachi.

      Karachi East Plot # 21/1, Sector 22, Korangi Industrial Area, Karachi.

      Karachi Central SSGC Karachi Terminal opposite Safari Park Main University Road, Karachi.

      Hyderabad Opposite New Eidgah, National Highway Qasimabad, Hyderabad. Nawabshah Near Sikandar Art Gallery Housing Society, Nawabshah.

      Sukkur Golimar Road, SITE area, Sukkur.

      Larkana Near Shaikh Zaid Women Hospital, Larkana. Quetta Samungli Road, Quetta.

   2. Regulatory framework

Under the provisions of license given by the Oil and Gas Regulatory Authority (OGRA) under the OGRA Ordinance, 2002, the Company is provided with a minimum annual return before taxation based on Weighted Average Cost of Capital ('WACC') from the year 2019 in place of the fixed rate of return of the average operating assets excluding interest, other non-operating expenses and non-operating income from the reference figures.

The determination of annual required return is reviewed by OGRA, under the terms of the license for transmission, distribution and sale of natural gas, targets and parameters set by OGRA. Income earned in excess / (short) of the above guaranteed return is payable to / recoverable from the Government of Pakistan (GoP).

1. BASIS FOR PREPARATION
   1. Statement of compliance

      These condensed unconsolidated 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 Standard Board (IASB) as notified under the Companies Act, 2017;

      -Provisions of, directives and notifications 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) and the directives issued thereunder.

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

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

      These condensed unconsolidated interim financial statements are unaudited and are being submitted to the shareholders as required under section 237 of the Act. These condensed unconsolidated interim financial statements do not include all the information and disclosures required in the annual unconsolidated financial statements, and should be read in conjunction with the annual unconsolidated financial statements of the Company as at and for the year ended June 30, 2025.

      However selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Company's financial position and performance since the last unconsolidated annual financial statements.

   2. Basis of measurement

      These condensed unconsolidated interim financial statements have been prepared under the historical cost convention unless stated otherwise.

   3. Functional and presentation currency

      These condensed unconsolidated interim financial statements have been presented in Pakistani Rupee, which is the functional and presentation currency of the Company.

2. MATERIAL ACCOUNTING POLICY INFORMATION

   The material accounting policies adopted for the preparation of these condensed unconsolidated interim financial statements are the same as those applied in the preparation of the Company's annual unconsolidated financial statements as at and for the year ended June 30, 2025.

   1. Changes in accounting standards, interpretations and amendments to accounting and reporting standards
      1. Standards, amendments and interpretations to approved accounting standards that are effective during the period ended December 31, 2025

         Certain standards, amendments and interpretations to approved accounting standards are effective for annual accounting periods beginning on January 01, 2025, but are considered not to be relevant or did not have any significant effect on the Company's operations and are, therefore, not detailed in these unconsolidated condensed interim financial statements.

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

      There are certain standards, amendments and interpretation to the approved accounting standards that are mandatory for the Company's annual accounting periods beginning on or after January 01, 2026, but are considered not to be relevant or expected to have any significant effect on the Company's operations and are, therefore, not detailed in these condensed unconsolidated interim financial statements.

   2. Non-Compliance with IFRS 14 Regulatory Deferral Accounts

      In terms of SECP's Notification S.R.O.1480 (1)/2019 dated July 01, 2019, the Company was granted exemption from the requirements of IFRS 14 Regulatory Deferral Accounts which was further extended from time to time and the latest exemption was available till June 30, 2024 vide its letter SMD/PRDD/Comp/(4)/2021/168 dated December 03, 2024.

      The Company has taken up the matter of further extension with the concerned authorities, however, as of reporting date, the exemption is not available accordingly, the Company has not incorporated any adjustment and / or presentation and disclosure requirements as laid down under IFRS 14 in these condensed unconsolidated interim financial statements.

3. SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS

   In the preparation of the condensed unconsolidated interim financial statements in conformity with the accounting and reporting standards as applicable in Pakistan requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities and incomes and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revision to estimates are recognised prospectively. In preparing these condensed unconsolidated interim financial statements, the significant judgments made by the management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those that were applied to the unconsolidated financial statements as at and for the year ended June 30, 2025.

   Note
4. PROPERTY, PLANT AND EQUIPMENT

   Operating fixed assets 5.1

   Capital work-in-progress 5.4

   December 31, June 30, 2025 2025 (Unaudited) (Audited) --------(Rupees in '000)--------

   214,194,222 26,032,143	215,010,277 13,645,841
   240,226,365	228,656,118
   215,010,277 4,918,714	189,159,124 36,643,232
   219,928,991	225,802,356
   (18,628)	(520,681)
   (5,716,141)	(10,271,398)
   214,194,222	215,010,277

   1. Following is the movement in operating fixed assets during the period / year:

      Operating fixed assets (WDV) - opening balance Add: Additions (including transfers from CWIP)

      during the period / year 5.2

      Less: Disposals during the period / year (WDV) 5.3

      Depreciation charge for the period / year Operating fixed assets (WDV) - closing balance

   2. Following additions were made during the period / year in operating fixed asset:

      12,309	-
      -	392,909
      11,992	259,998
      278,257	4,098,943
      3,134,867	29,262,603
      43,966	14,138
      436,989	1,268,821
      8,248	24,621
      539,890	411,022
      400,534	330,506
      16,160	4,832
      15,755	68,164
      19,743	506,675
      4,918,714	36,643,232
      -	495,447
      530	112
      2,004	5,311
      -	21
      16,094	19,791
      18,628	520,681
      12,943,883	4,709,312
      216,285	93,259
      1,013,626	743,738
      14,173,794	5,546,309
      12,046,315	8,287,498
      264,586	264,586
      12,310,901	8,552,084
      (452,552)	(452,552)
      26,032,143	13,645,841

      Freehold land Leasehold land

      Buildings on leasehold land Gas transmission pipeline Gas distribution system Telecommunication

      Plant and machinery Tools and equipment Compressors

      Motor vehicles Furniture and fixture Office equipment

      Computer and ancillary equipment

   3. Disposal during the period / year - WDV

      Gas distribution system Telecommunication Plant and machinery Tools and equipment Motor vehicles

   4. Capital work in progress

      Projects:

      Gas distribution system Gas transmission system

      Cost of buildings under construction and others

      Stores and spares held for capital projects - net 5.4.2 LPG air mix plant

      Less: Impairment of capital work in progress

      1. Additions to capital expenditures incurred during the period amounting to Rs. 16,903 million (June 2025: Rs. 33,336 million).

      2. Stores and spares held for capital projects

         Stores and spares held for capital projects Less: Provision for impairment

5. LONG TERM INVESTMENTS Note December 31, June 30, 2025 2025 (Unaudited) (Audited) --------(Rupees in '000)--------

   12,555,588 (509,273)	8,766,016 (478,518)
   12,046,315	8,287,498
   1,102,278 504,695	1,102,278 454,109
   1,606,973	1,556,387
   1,000,000	1,000,000
   82,278	82,278
   20,000	20,000
   1,102,278	1,102,278

   At cost

   Investment in subsidiary 6.1

   At fair value through other comprehensive income Associate and other investments 6.2

   1. Investment in subsidiaries

      SSGC LPG Limited

      100,000,000 (2025: 100,000,000)

      ordinary shares of Rs. 10 each (wholly owned subsidiary)

      Unwinding effect of interest free loan

      SSGC Alternate Energy (Private) Limited 2,000,000 (2025: 2,000,000)

      ordinary shares of Rs. 10 each (wholly owned subsidiary)

   2. Investment - at fair value through other comprehensive income Investment in related parties

Sui Northern Gas Pipelines Limited

United Bank Limited

237,256 (June 2025: 237,256) ordinary shares of Rs. 10 each

1. LONG TERM FINANCING

   Secured

   Banking companies Unsecured

   Customer finance Government of Sindh

   10.1, 10.2,

   40,652,197	52,343,412
   124,008 940,000	120,145 940,000
   1,064,008 41,716,205	1,060,145 53,403,557
   (33,500,000)	(42,166,667)
   (1,184)	(1,184)
   (186,667)	(186,667)
   (33,687,851)	(42,354,518)
   8,028,354	11,049,039

   10.3 & 10.4

   Less: current portion shown under current liabi Banking companies

   Customer finance

   Loans from Government of Sindh

   1. This includes a long term finance facility amounting to Rs. 21,000 million was sanctioned in March 2022 from a syndicate of banks.This financial arrangement has been secured by GoP guarantee.

   2. This includes finance facility amounting to Rs. 15,000 million was sanctioned in December 2022 from a syndicate of banks..

   3. This include finance facility amounting to Rs. 15,000 million was sanctioned in May 2024 by the bank.

   4. This include finance facility amounting to Rs. 20,000 million was sanctioned in March 2025 by the bank.

   5. These loans / financial arrangements are secured by pari passu charge by way of hypothecation on all present and future movable fixed assets of the Company comprising of compressor stations, transmission and distribution pipelines, pipeline under construction, machinery and equipments.

2. DEFERRED CREDIT December 31, June 30, 2025 2025 (Unaudited) (Audited) Note -----------(Rupees in '000)-----------

   4,338,651	4,514,118
   14,034	275,007
   (238,948)	(450,474)
   4,113,737	4,338,651
   1,847,681	1,736,245
   13,212	248,548
   (72,170)	(137,112)
   1,788,723	1,847,681
   -	76,173
   -	(76,173)
   -	-
   5,902,459	6,186,332
   (622,237)	(573,451)
   5,280,222	5,612,881

   Government of Pakistan (GoP) contributions / grants Opening balance

   Additions during the period / year

   Amortized during the period / year 21

   Closing balance 11.1

   Government of Sindh - Conversation of loan into grant Opening Balance

   Additions during the period / year

   Amortized during the period / year 21

   Closing balance

   Government of Sindh grants Opening Balance

   Amortized during the period / year 21

   Closing balance Less: current portion

   1. This represents amount received from the Government of Pakistan (GoP) for supply of gas to new towns and villages, the same is recognised as grant when the conditions specified by the GoP are met. This amount is amortised over the useful life of related projects.

3. CONTRACT LIABILITIES

   Contribution from customers Advance received from customers

   1. &12.2

3,973,789

8,275,049

12,248,838

1. SHORT TERM BORROWINGS

   Short term borrowing from financial institutions - secured

   109,083,682

82,806,374

1. 1. The total limit of various financing facilities available from commercial banks against short-term running facilities aggregate to Rs. 110,000 million (June 2025: Rs. 110,000 million) out of which the company has utilized Rs 109,084 million (June 2025: Rs. 82,806 million). The applicable markup rates during the period ranges from one to three months KIBOR plus basis ranging from 0.1% to 1.00% (June 2025: 0.1% to 1.00% ). These facilities are secured by first pari passu and second amendment to the joint hypothecation agreement and ranking charge over present and future stock in trade and trade debts of the Company. Markup is payable on monthly and quarterly basis with the effective interest rate charged during the year ranging from 10.84% to 12.20% (June 2025: 11.38% to 22.21%) per annum.

2. INTEREST ACCRUED

   Long term financing - loans from banking	445,657	448,561
   Long term deposits from customers	547,008	953,970
   Short term borrowings	1,423,605	828,754
   Late payment surcharge on processing charges	99,283	99,283
   	2,515,553	2,330,568

3. CONTINGENCIES AND COMMITMENTS

   1. There is no significant change in contingencies from the preceding audited unconsolidated financial statements of the Company for the year ended June 30, 2025, except for the following:

      1. As disclosed in note 7.1, the management has reversed Late Payment Surcharge (LPS) expense with effect from July 01, 2012 to June 30, 2016 amounting to Rs. 26,222 million on Government Controlled E&P Companies liabilities and ceased to record LPS expense for the year ended June 30, 2017, June 30, 2018, June 30, 2019,

June 30, 2020, June 30, 2021, June 30, 2022, June 30, 2023, June 30, 2024, June

30, 2025 and half year ended December 30, 2025 amounting to Rs. 7,569 million, Rs.

7,477 million, Rs. 10,525 million, Rs. 26,335 million, Rs 25,939 million, Rs. 27,921 million, Rs. 44,303 million and Rs. 99,005 million, Rs. 95,359 million and Rs 58,322 million, respectively in these unconsolidated financial statements. The Company will record and pay such LPS in the period when it receives LPS on amount receivable from KE and PSML.