February 27, 2026 (MLN): Sui Northern Gas Pipelines Limited (PSX: SNGP), one of Pakistan's largest natural gas distribution companies, has released its financial results for the half year ended December 31, 2025, showing a mixed performance marked by margin improvement amid declining top-line revenues.

Revenue from contracts gas sales declined 7.35% year-on-year to Rs. 661.19bn (2024: Rs. 713.61bn).

After accounting for a significantly higher tariff adjustment of Rs. 37.68bn (2024: Rs. 15.56bn), Net Sales stood at Rs. 623.51bn, a decrease of 10.68% compared to the corresponding period last year.

Despite the revenue pressure, Gross Profit grew 3.21% to Rs.26.80bn, as cost of gas sales declined in tandem, falling 11.22% to Rs596.71bn.

Operating income net of cost of gas sales came in at Rs. 43.66bn versus Rs44.08bn in the prior year, a marginal decline of 0.96%.

Operating expenses saw notable increases across the board. Selling costs rose 10.41% to Rs6.21bn, administrative expenses climbed 17.04% to Rs6.96bn, and other expenses increased 21.83% to Rs. 875.82m.

However, net impairment loss on financial assets improved significantly, declining 36.07% to Rs819.27m, providing some relief at the operating level.

As a result, Operating Profit stood at Rs28.80bn, a decrease of 5.62% over the prior year.

A key positive development during the period was a substantial 24.39% reduction in finance costs to Rs. 12.98bn (2024: Rs. 17.17bn), which provided a significant boost to the bottom line.

Consequently, Profit Before Income Tax jumped 18.54% to Rs. 15.81 billion compared to Rs13.34bn in the same period last year.

Income tax expense, however, rose sharply by 54.63% to Rs. 8.65bn, tempering net earnings. Profit After Taxation for the period was recorded at Rs7.17bn, a decline of 7.50% from Rs7.75bn in the comparable period.

Earnings Per Share (EPS) stood at Rs. 11.30 versus Rs. 12.22 in the prior year, reflecting a 7.53% decrease.

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