LAHORE -  The Sui Northern Gas Pipelines Limited (SNGPL) has announced to disconnect 129 industrial and commercial defaulting consumers during period September 26 to October 10, 2017, having cumulative gas bills default of Rs149,801,415.

SNGPL Managing Director Amjad Latif, in continuity of the strict policy of disconnecting gas bill defaulters, has ordered to disconnect various industrial and commercial defaulting consumers. Meanwhile, the SNGPL has posted earnings of Rs9 billion as against earnings of Rs124 million which remained higher than expectations. In 9MFY17, SNGPL reported earnings of Rs9.25 per share. In 1QFY18, earnings clocked in at Rs3 per share, up 37 percent YoY.

The company also declared FY17 final cash dividend of Rs6 per share and an interim cash dividend of Rs1.5 per share for 1QFY18 which was above expectations. Experts attribute strong earnings growth of SNGPL to higher capex carried out on account of LNG-II pipeline and lower Unaccounted for Gas Losses (UFG) during FY17.

The SNGPL had carried out capex of around Rs20 billion during 9MFY17 and it had planned a total capex of around Rs60 billion for LNG-II pipeline. Similarly, UFG during FY17 stood at 8 percent compared to 10 percent in FY16. This drove operating profits of the company which increased from Rs4.2 billion to Rs17.9 billion in FY17.

SNGPL operates on return on asset formula hence its profitability is directly proportional to its assets expansions and status of UFG losses. SNGPL reported 1QFY18 EPS of Rs3 which was 31 percent lower on QoQ basis and lower than expectations due to higher finance cost and lower than expected UFG allowance under the KPMG study.