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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