20000313

SSGC, SNGPL

profits up 27pc

RECORDER REPORT

KARACHI: The profits of SSGC and SNGPL in the six months ended December 31, 1999 grew sharply by 27 percent to Rs 757 million as compared to 1998 owing to increase in rental and service income and rise in connections.

The sales of Sui Northern Gas in the six months ended December 31, 1999 amounted to Rs 10.889 billion while Sui Southern Gas totalled at Rs 8.177 billion. The Sui Northern Gas did not resort to load shedding during winter of 1999, which provides better results. Also, the industrial consumers were provided uninterrupted supply of gas. This has improved the financial health of the company and helped in reviving the economy.

The gas sales during the period were 131,310 mmcf as compared to 118,054 mmcf during the corresponding period last year. The increase is on account of consumers including Wapda, fertilizers and industrial consumers. The targets for domestic gas connections during 1998-99 were 125,000, which were increased to 180,000 for the current fiscal.

The company has provided gas connections to 77,703 domestic consumers w.e.f. July 1, 1999 till December 31, 1999 as against 40,478 connections in the previous period, which indicate substantial improvement in the physical performance of the company.

The sales volume of Sui Southern Gas have increased by 18 percent from 84,573 mmcf of last year to 99,824 mmcf in the current six months. The increase in value of sale is 11 percent which is a combined result of volume growth and increased sale price effective from August 16, 1999.

The company gave 41,684 additional connections raising the total to 1,489,892. The Gas purchase agreements have been finalised with the operators of Miano, Daru, Zamzama and Badin-II gas fields. Negotiations are in progress for the purchase of gas from Savan, Hasa and Bhit gas fields.

The shareholders of Sui Northern Gas had given consent for divestment of LPG business and accordingly the Privatisation Commission has initiated appropriate steps in this regard. The setting up of Natural Gas Regulatory Authority would accelerate the privatisation process.