Sui Northern Gas Pipelines Limited (SNGPL) is a Pakistani public limited company incorporated in 1963 that provides gas to 16 regions with over 67 million consumers. An analysis of SNGPL's financial statements from 2010-2019 shows: 1) Profit fluctuated over the years, with the highest profit in 2018 of Rs. 11.25 million and lowest in 2016 of Rs. 124,013. 2) Cost of goods sold comprised 95-100% of revenue each year, resulting in low gross profits between 1-6%. 3) Liquidity ratios were generally positive, indicating adequate liquidity to meet short-term obligations. However, working capital showed negativity at times. 4) Pro

1. SUI NORTHRN GAS PIPELINE
LIMITED
PRESENTED BY:
MAHNOOR
18550920-206

2. HISTORY BACKGROUND:
• Sui Northern Gas Pipelines Limited (SNGPL) was incorporated as a
private limited Company in 1963 and converted into a public limited
company in January 1964 under the Companies Act 1913 of British
India, now The Companies Act 2017 of Pakistan, and is listed on
the Pakistan Stock Exchange.SNGPL basically provides gas to 16
regions. It has 67 Lack Consumers. The Consumers in Sialkot are
about 3.2 million approx.

3. Income statement analysis Highlights:
• Gas company gain profit in 2019 Rs.7.75 million but as compare to
2018 the profit of the year is low.
• In 2018, company’s profit was 11.25 million.
• In 2017, company gain profit of the year was 8.5 million.
• In 2016, company was gain a too much low profit Rs.124, 013.
• In 2015, 2014, 2013, the company face a huge loss of Rs.2.5, 3.75,
9.75 respectively

4. Cont…
• In year 2012, 2011, and 2010 the company gain aging the normal rate
of profit.
• In the year 2018 the company gain the highest profit. And the year
2016 the company gain much low profit.

5. Vertical common size analysis:
• Cost of goods sold for the years 2019 and 2018 is 95%. 2017 is 94%.
2016 is 98%, 2015 is 99%, 2014 is 100%, 2013 is 107%, 2012, 2011
and 2010 are also 97% respectively.
• Grass profit for the years 2019 and 2018 is 5% , 2017 is 6% , 2016 is
2% , 2015 , 2014 , 2013, 2012, 2011 and 2010 are 1%, 0%, -7%, 3%,
2% and 3%.
• Operating incomes for the 10 years are 2%, 3%, 3%, 5%, 5%, 4%, 8%,
4%, and 5% respectively

6. Cont…
• All operating expenses for 10 years are 2%, 3%, 4%, 5% and 3%
respectively.
• Operating profit or loss for the years 2019, 2018, 2017, 2016, 2015,
2014, 2013, 2012, 2011 and 2010 are 5% , 2%, 0%, -4% , 4%.
• Net profit or loss for the year 2019, 2018, 2017, 2016, 2015,2014,
2013,2012, 2011 and 2010 are 1%, 2%, 0%, -5%, -2% respectively.

7. Horizontal common size analysis:
• An increase in revenue in 2019 and 2018 and decrease in 2010.
• Increase in cost of goods sold in 2019 and 2018 and decrease in 2010.
• Gross profit also increase in 2019 and 2018 and decrease in 2010.
• Other operating incomes are increased in year 2019 and 2018 and
decrease in 2010.
• Operating profit or loss increase in 2019 and 2018 and decrease in
2014.
• Financing cost increase in 2019 and 2018 and decrease in 2012.
• Profit and loss for the years Decrease in 2019 and 2018 and increase
in 2013.

8. Ratio analysis:
Liquidity:
• Liquidity in day’s sale in receivable in sui northern gas pipe line Ltd. Is
positive in more ration and in 2 or 3 years negativity in ratio.
• In account receivable turnover ratios 2010 to 2019 show the positivity and
that positivity show the more liquidity.
• Account receivable turnover in days, indicate the liquidity of the
receivables. The turnover of receivables declined in 2014 to 2010 that
would be negative for the company’s liquidity.
• Decrease in inventory turnover year by year from 2010 to 2019 show the
negativity and due to that negativity in the ratio the liquidity is low.

9. Conti…
• Inventory turnover in days in year 2010 to 2019 show the positivity
and high liquidity.
• Operating cycles is increased year by year 2010 to 2019 show the high
liquidity.
• Working capital is showing the negativity so that’s why their liquidity
is very low.
• Current ratio is showing the positivity so their liquidity is more.

10. Cont…
Long-term debt-paying ability:
• The time interest earned ratio indicate the long term paying debt
ability for long term. There is no interest expense exist so the time
interest ratio is zero.
• In fixed charge coverage ratios show zero value due the no existence
of interest expense.
• Debt ratio is the long term debt paying ability for the company if the
debt ratio is low so it is good for the company.
• Equity ratio show the increasing point so it’s increasing point not
show the good effect on the company.

11. Cont…
Profitability:
• Net profit margin for the year 2019, 2018, 2017, and 2016 was fine
but 2015 and 2014 is showing the negative profit margin.
• Total asset turnover show the normal performance in years 2010 to
2019.
• Return on assets shows in some positive ratio and 2 years are
negative which is not good for the company.
• Operating income margin show the normal profitability.
• Sales to fixed asset is increasing by point one by the years to years.

12. Cont…
For the investor:
• Degree of financial leverage ratios show the highest ratio in 2016 and
lowest ratio in 2011.
• Earnings per common shares ratio show the highest ratio in 2018 and
lowest and negative ratio in 2013.
• Dividend yield show the negativity in all ratio analysis.

13. Cont…
Cash flow:
• Debt ratio reducing years by years from 2010 to 2019.
• Operating cash flow per year is increasing the year 2018 and showing
decreasing position in 2013.
• Cash dividends showing decreasing positions in all ten years from
2010 to 2019 .it shows the negativity.