S.KAMAL HAYDER KAZMI,
Research Analyst, PAGE
June 11 - 17, 2012
Sui Northern Gas Pipelines Limited (SNGPL) is committed to be the leading integrated natural gas provider in the region, seeking to improve the quality of life of customers and achieving maximum benefit for stakeholders, by providing natural gas to its consumers. The company has over 48 years of experience in operation and maintenance of high-pressure gas transmission and distribution systems. It has also expanded its activities as engineering, procurement, and construction (EPC) contractor to undertake the planning, designing and construction of pipelines, both for itself and other organizations. SNGPL transmission system extends from Sui in Balochistan to Peshawar in Khyber Pakhtunkhwa (KPK) comprising over 7,613 KM of transmission system (main lines & loop lines). The distribution activities covering 2,205 main towns along with adjoining villages in Punjab and Khyber Pakhtunkhwa are organized through 11 regional offices. Distribution system consists of 81,828 KM of pipeline.
FINANCIAL HIGHLIGHTS (RUPEES IN THOUSAND)
INDICATORS UN-AUDITED MARCH 2012 AUDITED JUNE 2011 Non-current liabilities 70,097,529 69,574,591 Current liabilities 74,112,552 50,431,414 Non-current assets 91,630,774 91,267,530 Current assets 71,773,150 47,467,364
SNGPL has 3,929,842 consumers comprising commercial, domestic, general industry, fertilizer, and power and cement sectors. Annual gas sales to these consumers were 581,935 mmcf worth Rs187,837 million during Jul 2010 - Jun 2011.
The company took over the existing Sui-Multan System (217 miles of 16 inch and 80 miles of 10 inch diameter pipelines) from Pakistan industrial development corporation (PIDC) and Dhlian-Rawalpindi-Wah system (82 miles of 6 inch diameter pipeline) from Attock Oil Company Limited.
The company's commercial operations commenced by selling an average of 47 mmcfd gas in two regions viz. Multan and Rawalpindi, serving a total number of 67 consumers. SNGPL is the largest integrated gas company serving more than 3.9 million consumers in North Central Pakistan through an extensive network in Punjab, Khyber Pakhtunkhwa and Azad Jammu & Kashmir and is certified against ISO 14001:2004 & OHSAS 18001:2007 Standards. SNGPL's 11 sites have been registered under the "SMART2" Program by Pakistan Environmental Protection Agency (PAK-EPA). SNGPL is listed on all the three stock exchanges of the country.
During the 3rd quarter and nine months ended March 31, 2012 of the company, it earned a net profit of Rs1,014 million as against Rs415 million during the corresponding period last year. The earnings per share also increased to Rs1.76 (Re0.72, March 31, 2011). The increase in net profit and subsequent increase in earnings per share is the reflection of concerted efforts of the management and all staff members, who put in their best endeavors to curb the increasing trend of unaccounted for gas (UFG).
Several steps including, but not limited to, increased vigilance, leakage rectification, and minimization of measurement errors etc. were taken during the period under review. During the third quarter, due to adverse weather conditions, gas load management and shifting of gas supply from bulk to domestic sector, the company observed a slight increase in UFG loss.
. Rs/MMBTU 1. DOMESTIC SECTOR (STANDALONE METERS) Up to 100 M3 per month 122.95 Over 100 - up to 300 M3 per month 245.89 Over 300 - up to 500 M3 1,035.34 All over 500 M3 per month 1,302.46 Minimum Charges Rs. 165.83 per month 2. COMMERCIAL PRICES All off-takes at flat rate Rs.600.19 per MMBTU Minimum charges Rs.2,833.41 per month
The company is engaged in various pipeline construction projects for national and multinational companies. The relations with these companies have remained exemplary especially with MOL Pakistan that after their first working interaction with SNGPL at Manzalai gas gathering system awarded the company with jobs of Mamikhel-1 flow line, Maramzai-l flow line, Makori feed line, Manzalai-8 flow line and recently Makori East flow line. In addition, MOL Pakistan has further desired to enter into five-year contractual relationship with SNGPL and suggested to sign blanket service order in this respect. Their future projects include Tolanj-1, Mamikhel-2, Manzalai-9, Maramzai-2, Manzalai-10, Manzalai-11, Mardankheil-1, Manzalai-12, Mardankheil-south etc.
It is expected MOL Pakistan would initiate the working on Manzalai-9 flow line for which they have requested to conduct preliminary survey work and prepare cost estimate. In this respect, SNGPL is quite hopeful in getting this job as well. OGDCL awarded the Qadirpur compression project to the company last year. Recently, OGDCL has awarded another pipeline project at its Reti and Maru gas field to SNGPL.
No doubt, the company's responsibility is to deliver uninterrupted gas supply to its consumers. However, the constraints on supply are beyond their control. The company has also urged their consumers to use natural gas efficiently and economically, since conservancy is the need of the hour. However, the company looks forward to the support of the authorities and the nation as a whole to curb the menace of gas pilferage, which deprives honest consumers of their legitimate share.