KARACHI: Sui Northern Gas Pipelines Ltd (SNGPL) has received board approval to establish a wholly owned subsidiary as part of its strategy to diversify operations following a year of record-breaking profitability.
In a notice to the Pakistan Stock Exchange (PSX) on Thursday, the company announced that the decision was made during its 638th board meeting held on June 25. The new entity will have an authorized share capital of Rs1 billion, with an initial paid-up capital of Rs50 million. Costs incurred during the registration process will be billed to the subsidiary and recovered once it becomes operational.
The move comes after SNGPL posted its highest-ever financial results for FY 2023-24, with a profit before tax reaching Rs30 billion. Profit after tax nearly doubled to Rs19 billion from Rs10.6 billion the previous year, while earnings per share soared to Rs29.92 from Rs16.66 year-on-year.
