SNGPL to Set Up Wholly-Owned Subsidiary

Sui Northern Gas Pipelines Limited (PSX: SNGP) has announced that its Board of Directors, in its 638th meeting held on June 25, has approved the formation and registration of a wholly owned subsidiary company. According to a stock filing at the Pakistan Stock Exchange (PSX), the new entity will have an authorized share capital of Rs. 1 billion and an initial paid-up capital of Rs. 50 million. The move is part of SNGPL’s expansion and restructuring plans. The company clarified that any costs incurred by SNGPL in the process of registering the subsidiary will be charged to the new entity and subsequently recovered once it becomes operational. SNGP reported a profit after tax of Rs. 18.97 billion for the fiscal year 2023-24, up 80 percent compared to Rs. 10.56 billion in the same period last year. SNGPL posted an EPS of Rs. 13.01, up 280 percent YoY and 123 percent QoQ. The company has also restated its accounts and made some changes in accounting entries, which is why gross profits and finance cost numbers are revised down for QoQ comparison.