Karachi: The 57th Annual General Meeting (AGM) of SSGC, held on October 28, 2011 in Karachi, approved the Financial Statements alongwith the Auditors’ Report for the financial year ending June 30, 2011. The AGM was chaired by Salim Abbas Jilani, Chairman SSGC, with the participation of Managing Director, Azim Iqbal Siddiqui, Company Directors, senior management and a large number of shareholders.
The AGM approved the payment of 25% cash dividend and 5% bonus shares to the shareholders. During FY 2010-11, the Company registered a net profit of Rs. 4,724 billion against Rs. 4,399 billion in FY 2009-10.
These impressive numbers won tremendous appreciation from the shareholders who expressed their utmost confidence in the company’s management by lauding its proactive role in increasing the net profitability through the steps it is undertaking to bridge the widening imbalance of demand and supply of natural gas.
The Chairman and the Managing Director responded to the queries raised by the shareholders. They informed the house that a number of progressive steps have been undertaken such as the fast track import of LNG through a third party regime which will bring in 1.4 billion cubic feet gas by 2012.
Shareholders were also informed that SSGC has acquired Progas LPG Plant that would not only provide additional gas to the far flung areas, where gas distribution through conventional pipelines is not cost effective but will also allow for diverting natural gas to the industry.
With regards to the issue of UFG, the MD informed that company is working on a development plan and a USD 200 Million Natural Gas Efficiency Project has been formulated in cognizance with the World Bank that will bring about a phased reduction in UFG over a five year period by rehabilitating 5,000 kms of aging pipelines.
Furthermore the distribution network in the biggest gas consuming centre Karachi has been bifurcated in three operational regions on the basis of its natural geographical boundaries and this strategy has started showing results in quantifying UFG levels with respect to sale and purchase volumes.
Replying to the queries of Shareholders the MD acknowledged two major issues. Firstly in view of the mounting receivables from KESC which have touched a massive figure of Rs. 32 billion, the management is proactively working to negotiate a Gas Sales Agreement that will help in the recovery of new bills.
The Chairman added that KESC’s receivables issue is a major sore point for the Company, compelling it to borrow from bank at higher rates. The other issue of overstaffing which occurred due to the reinstatement of some 2,500 employees through Presidential Ordinance in 2009 has been resolved by effectively utilizing these reinstated employees in different functional areas through proper training and skill development.
The Chairman thanked the shareholders, Directors and Company’s management for attending the AGM and joined the shareholders in complementing SSGC’s Customer Relations Department for promptly attending to the customer’s complaints consuming minimum response time.
He also lauded the Corporate Communication Department for competently developing the 57th Annual Report by conceptualizing an apt theme and an impressive layout.
Members of SSGC’s Board of Directors including Ahmed Bakhsh Lehri, Fazal-ur-Rehman Dittu, Nessar Ahmed, Aurangzeb Ali Naqvi, Mirza Mahmood Ahmad, Ayaz Dawood, Azhar Maud and Zubair Habib also attended the AGM who were seated on the stage, alongwith the Chairman, MD, Company Secretary Yusuf J. Ansari and CFO Shahid H. Jafri. The Company’s senior management including Syed Hassan Nawab, DMD (Operations), Zuhair Siddiqui, DMD (Corporate Services), SGMs, GMs, DGMs and other officials were also present at the AGM.
For more information, contact:
Deputy Chief Manager
Corporate Communication Department (Media Relations)
Sui Southern Gas Company (SSGC)
Tel: +9221 9902 1773
Cell: +92322 222 5159
Fax: +9221 9923 1662