The Sui Southeren Gas Company (SSGC), in line with its five-year development plan, is working on a $200 million Natural Gas Efficiency project in collaboration with the World Bank to reduce the company’s Unaccounted for Gas (UFG) losses. The project would bring about a phased reduction in the UFG losses over a five-year period by rehabilitating 5,000kms of aging pipelines. Also, the SSGC has registered a net profit of Rs4,724 billion for FY 2010-11 against Rs4,399 billion of FY 2009-10. The company has declared a 25 per cent cash dividend and 5 per cent bonus shares for its shareholders. Addressing the 57th Annual General Meeting (AGM) of SSGC, under the chairmanship of Chairman, Salim Abbas Jilani, the company’s Managing Director, Azim Iqbal Siddiqui told the shareholders that the company was working on a development plan.
He said that a $200 million Natural Gas Efficiency project had been formulated in cognisance with the World Bank that would bring about a phased reduction in UFG losses over a five-year period by rehabilitating 5,000kms of aging pipelines. Furthermore, the MD said, the distribution network in the biggest gas consuming centre in the city had been bifurcated in three operational regions on the basis of its natural geographical boundaries. “This strategy has started showing results in quantifying UFG levels with respect to sale and purchase volumes,” said Siddiqui.
Attended by the company directors, senior management and a large number of shareholders, the AGM approved the financial statements along with the Auditors’ Report for the financial year ending June 30.
The AGM approved the payment of 25 per cent cash dividend and 5 per cent bonus shares to the shareholders.
During FY 2010-11, the company registered a net profit of Rs4,724 billion against Rs4,399 billion in FY 2009-10. These impressive numbers won tremendous appreciation from the shareholders who expressed their utmost confidence in the company’s management by lauding its proactive role in increasing the net profitability by the steps it is undertaking to bridge the widening imbalance of demand and supply of natural gas.
The chairman and the managing director responded to the queries raised by the shareholders. They informed the house that a number of progressive steps have been undertaken such as, the fast track import of LNG through a third party regime which will bring in 1.4 billion cubic feet gas by 2012.
Shareholders were also informed that SSGC has acquired Pro gas LPG plant that would not only provide additional gas to the far flung areas, where gas distribution through conventional pipelines is not cost-effective, but will also allow for diverting natural gas to the industry.
The MD acknowledged two major issues. Firstly, in view of the mounting receivables from KESC which have touched a massive figure of Rs32 billion, the management is proactively working to negotiate a Gas Sales Agreement that would help in the recovery of new bills. The chairman added that KESC’s receivables issue was a major sore point for the company, compelling it to borrow from bank at higher rates. The other issue of overstaffing which occurred due to the reinstatement of some 2,500 employees through Presidential Ordinance in 2009 had been resolved by effectively utilising these reinstated employees in different functional areas through proper training and skill development.
Members of SSGC’s Board of Directors including, Ahmed Bakhsh Lehri, Fazal-ur-Rehman Dittu, Nessar Ahmed, Aurangzeb Ali Naqvi, Mirza Mahmood Ahmad, Ayaz Dawood, Azhar Maud, Zubair Habib, Syed Hassan Nawab, DMD (Operations), Zuhair Siddiqui, DMD (Corporate Services), SGMs, GMs, DGMs and other officials were also present at the AGM.
