Islamabad June 5 2023: Oil and Gas Regulatory Authority (OGRA) increased return of Sui Northern Gas Pipelines Limited and Sui Southern Gas Company Limited to 20.6 percent for fiscal year 2024 from 16.6 percent in fiscal year 2023.
Sui Northern Gas Pipelines Limited (SNGP) and Sui Southern Gas Company Limited (SSGC) demanded return of 21.13 percent and 21.58 percent for next fiscal year. However, OGRA calculated return, Weighted Average Cost of Capital (WACC), of 20.6 percent on the basis of variation in other existing parameter.
“Pertinently, the dip earlier expected in earnings in FY23 amid jump in the weighted average cost of gas will potentially be offset by an upwards revision in WACC” writes Misha Zahid Analyst at Arif Habib Limited in its research report.
OGRA has allowed 6.25 percent for distribution and 0.34 percent for transmission, equivalent to PKR 10 billion, Un account for Gas (UFG) losses to SNGP against its claim of 8 percent.
Similarly, OGRA allows 0.14 for transmission and 6.25 percent UFG adjustment of PKR 21.5 billion to SSGC against company claim of 13.13 percent for next fiscal year.
