Karachi, October 04, 2012 (PPI-OT): As per KSE notice, DH Fertilizers Ltd. (DHFL) which is the wholly owned subsidiary of Dawood Hercules Corporation Ltd., had filed a petition in the Lahore High Court (LHC) against SNGP for discriminatory treatment in the supply of gas to their company.
According to Alfalah Securities Limited, DHFL had appealed that the supply of gas to be made in accordance with the Gas Allocation and Management Policy 2005. In this regard, LHC has directed SNGP to supply gas to DHFL as per the allocation policy. However, since SNGP continue to deprive DHFL of its share in gas, DHFL has filed an application for the contempt of the court order. Subsequently, SNGP informed DHFL that the gas supply has been restored to its plant.
However, DHFL is still seeking assurance for the continuation of gas supply as per the policy. The fertilizer plant has been facing gas outages which had brought the fertilizer production to a halt. In case the gas supply is duly restored, the profitability of Dawood Hercules would improve through improved sales and normal business operations from DHFL.