Sui Northern Gas Pipelines (SNGP): 3QFY18 EPS of Rs3.3, down 15%YoY (+9% QoQ); (In-line with Expectations)
- SNGP recorded earnings of Rs3.3/share in 3QFY18, down 15% YoY due to higher operating expenses which were up 32% YoY.
- Net sales of the company surged to Rs133bn in 3QFY18 as against Rs72bn in same period last year. Gross profits of the company was also up 31% YoY to Rs4.1bn. This improvement is primarily on account of higher capex carried out during the quarter and in 9MFY18.
- Other operating income was also up 10% due to higher interest income on late payment surcharge, we believe.
- Other operating expenses increased by 32% denting profitability of the company. This is due to exchange losses as Pak rupee depreciated by 5% during the quarter, we believe. However, we believe that exchange rate adjustment is a pass through item and it could be passed on in company’s annual result.
- In 9MFY18, earnings of the company stood at Rs9.4/share, down 2% YoY primarily due to higher operating expenses.
- Key risks for the company includes 1) higher UFG losses, 2) delay in capex, & 3) regulatory changes, posts key risks for the company.
Sui Northern Gas Pipelines is engaged in the purchase, transmission, distribution and supply of natural gas. Co. also expanded its activities to undertake the planning, designing and construction of pipelines, both for itself and other organizations.
Topline Securities is one of the fastest-growing brokerage houses in Pakistan. It has strong Equity Brokerage, Economic/ Equity Research, Commodity Trading and Corporate Finance & Advisory functions.
Topline Securities has been endowed with numerous awards by renowned international financial organizations. The highlights of which consists of the award for ‘Best Local Brokerage House of Pakistan’ by Asiamoney Brokers Poll (the largest Asia-focused equity services provider poll) in 2016 and ‘Best Equity Brokerage House’ by CFA Society Pakistan in 2015.
Previously, Topline Securities held the title for ‘Best Brokerage House’ for 4 consecutive years (2011-2014) by Asiamoney Brokers Poll. Other awards include the ‘Best Salesperson’ award by Asiamoney for 6 consecutive years (2011-2016), the ‘Arabia Fast Growth 500’ award and ‘Pakistan Fast Growth 100’ award in 2012 and 2013 by AllWorld Network.
JCR-VIS, a credit rating agency providing independent rating services in Pakistan has assigned initial rating of “A-2” for short term and “A” for long term to Topline Securities. Topline Securities is registered as Underwriter, Book Runner and Research Entity with Securities & Exchange Commission of Pakistan (SECP).
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