Sui Northern Gas Pipelines Limited (SNGP) is scheduled to announce its FY18 / 1QFY19 financial result on Monday (22nd Apr’19). We expect the company to post earnings of PKR 9,474mn (EPS: PKR 14.94) during FY18, depicting a jump of 10% YoY.
Forecast by the analysts is premised on incremental capital expenditure incurred by the company in the said year.
Moreover, the company is expected to book a one-time positive impact of prior years’ (FY13-FY17) UFG adjustment at 7.6% as opposed to the benchmark 4.5%; total impact on the company arrives at PKR 1.1bn given the authority had already allowed a higher UFG between 6.73% in FY13 and 7.11% in FY17.
This would translate to a per share impact of PKR 1.25/share. Whereas during 1QFY19, the company is projected to unveil a bottom-line of PKR 1,914mn (EPS: PKR 3.02), stagnant over same period last year.
Key reason behind this performance is higher capital expenditure which will offset the impact of a rise in UFG.
