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PRESENTED TO: Ahmed Saeed
PRESENTED BY: Muhammad Umair Malik
SUI SOUTHERN GASCOMPANY LIMITED
Analysis of Financial Statements Financial
Year 2004 - 2001 Q Financial Year 2010
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Overview
Sui Southern Gas Company (SSGC) is Pakistan'sleading integrated gas company
SSGCL's transmission system extends from Sui inBalochistan to Karachi in Sindh comprising over
3,200km of high-pressure pipeline ranging from 12-24" in diameter An average of about 357,129 million cubic feet
(MMCFD) gas was sold in 2006-2007 to over 1.9 millionindustrial, commercial and domestic consumers inthese regions through a distribution network of over
29,832-km The company has an authorized capital of Rs 10 billion
of which Rs 6.7 billion is issued and fully paid up
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COMPANY SNAPSHOT
NAME OF COMPANY SUI SOUTHERN GASCOMPANY LTD
---------------------------------------------------------------- Nature of Business Gas Utility Ticker SSGC Net Sales FY '08 Rs 76,642,399,000 Net Sales FY '09 Rs 108,151,087,000
Share price (avg.) Rs 16.67 Market Capitalization 9,060,853,469
===================================
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0
10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000
Net sales
Net sales 44799690 52702677 66303588 69084403 76642399
2004 2005 2006 2007 2008
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profit Scenario
0%
20%
40%
60%
80%
100%
2004 2005 2006 2007 2008
profit after tax Gross profit operating profit
operating profit 2267948 2151694 3110686 3111965 4752301
Gross profit 6086611 5889971 6709111 5927296 7404163
profit after tax 996712 1012501 891717 290379 991067
2004 2005 2006 2007 2008
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0
20000000
40000000
60000000
80000000
Gas sale Cost of goods sold
Gross profit trasmissiion and distribution cost
Other operting expeses Other operting income
profit after tax
Gas sale 54444623 62511685 77562255 85176663 86823993
Cost of goods sold 38713079 46812706 59594477 69157107 69238236
Gross profit 6086611 5889971 6709111 5927296 7404163
trasmissiion and distribution cost 5447342 617282 6570945 6734200 7417128
Other operting expeses 104215 156984 178254 148223 981665
Other operting income 1732894 2591689 3150774 4069092 3704541
profit after tax 996712 1012501 891717 290379 991067
2004 2005 2006 2007 2008
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0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
Balance sheet itemscomparison
Total Equity total long term liabilities current liabilities total current assets total fixed assets
Total Equity 10,345,332 10,365,802 10341470 9738903 10315060
total long term liabilities 11234632 14524412 17169048 22800392 27931963
current liabilities 17841503 22000891 25338511 31750185 35423670
total current assets 13995320 15681602 21741190 30169704 36279168
total fixed assets 17901503 22000891 25338511 31750185 41333664
2004 2005 2006 2007 2008
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PROFIT MARGIN
0.00%
5.00%
10.00%
15.00%
NET profit margin on sale gross profit margin
NET profit margin on sale 1.83% 1.62% 1.15% 0.34% 1.14%
gross profit margin 11% 9.42% 8.65% 6.91% 8.53%
2004 2005 2006 2007 2008 2009
PROFITABILI
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PROFITABILI
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
2004 2005 2006 2007 2008
Basic earn ing p ow er R eturn o n assets
R e tu rn o n c o m m o n e
B as i c e a r n in g p o w e r 7.12% 5.71% 6.61% 5.03% 6.63%
R e t u r n o n as s e t s 3.13% 2.69% 1.89% 0.47% 1.38%
Re t u r n o n co m m o n e q 9.63% 9.77% 8.62% 2.98% 9.61%
2004 2005 2006 2007 2008
urren sse s urren
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0
5000000
10000000
15000000
20000000
25000000
30000000
35000000
40000000
urren sse s urrenLiabilities
total current assets current liabilities
total current assets 13995320 15681602 21741190 30169704 36279168
current liabilities 17841503 22000891 25338511 31750185 35423670
2004 2005 2006 2007 2008
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Assets Management
0
10
20
30
40
50
60
70
80
90
100
Inventory Turnover in daysinverory turnover in yearOperating Cycletotal assets turnoverdays sale outstanding
Inventory Turnover
in days
6.65 6.75 6.09 5.92 7.01
inverory turnover in
year
54.85 54.04 59.97 61.62 52.07
Operating Cycle 51.61 57.87 57.37 74.56 91.27
total assets
turnover
1.71 1.66 1.65 1.38 1.21
days sale
outstanding
44.96 51.12 51.29 68.64 84.26
2004 2005 2006 2007 2008
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LIQUIDITY RATIOS
0
0.5
1
1.5
Current rario Asset test ratio
Current rario 1.37 1.23 1.11 1.03 1.08
Asset test ratio 1.27 1.14 1.04 0.98 1.03
2004 2005 2006 2007 2008
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D E B T M A N A G E
0
1 0
2 0
3 0
D e b t -T o ta l A s s e ts r a t ioD e b t - e q u ityT im e s - in te r e s t -e a r n e dE B IT D A C o v e ra
D e b t - T o t a l A s s e t s r a t i o0 .6 7 0 .7 2 0 .7 8 0 .8 4 0 .8 6
D e b t - e q u i t y 2 .0 7 2 .6 4 3 .5 5 5 .3 6 5 .9 5
T im e s - in t e r e s t - 3 .5 2 4 .2 6 1 3 .4 9 2 6 .6 6 8 .8 2
EB IT D A C o v e r a g e 6 .0 4 7 .8 8 6 .5 6 4 .4 3 4 .9 5
2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8
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MARKET VALU
0
2
4
6
8
2004 2005 2006 2007 2008
PRICE/ cash flow Earnings per share
Price/ Earnings Market/ Book
Dividend paid per shar e
PRICE/ cash flow 2.56 2.56 2.56 2.56 2.56
Earn ings per s hare 1.49 1.51 1.33 0.43 1.48
Price/ Earnings 2.052 1.641 2.419 6.291 1.896
M arket / Book 2.56 2.56 2.09 1.86 1.83
Dividend paid per s ha 1.8 1.49 1.49 1.29 0.5
2004 2005 2006 2007 2008
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Future Outlook
According to the documents availablewith Business Recorder, following thedecision, taken in the meeting atSSGC head office, tender notice for100 mmcfd SNG plant was given innewspapers on April 17 inviting
interested parties. The bid openingdate was extended for the tenderthree times.
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Future Outlook
The bidders were asked to submittechnical/commercial bids separately along withtheir own studies to ensure safe mixing of SNGwith NG to ensure technical viability of the
project. Moreover, SSGC is involved in a numberof long-range promising projects that couldboost earnings.
Pakistan Mashal LNG Project (Country's First
LNG Import Project): Pakistan's Gas Demandand Supply Projections indicate a widening gapof approximately 500 mmcfd by the year 2010.
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Thank you
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