Sui Southern Gas Pipelines recovers Rs 600 mn from 277 defaulter industries

Karachi: Sui Southern Gas Pipelines (SNGP) was able to recover Rs 600 mn from 277 defaulter industries on the instructions given by the Ministry of Petroleum and Natural Resources.

According to Alfalah Securities Limited, the overall outstanding dues unpaid to SNGP were Rs 1.063 bn for which the company recently cut off 74 connections of large industrial units. The ministry has also directed SNGP to register cases against such default companies. The recovery of dues would not increase the profitability of the company as they operate on a fixed profit based formula having a fixed Return on Asset (ROA) of 17.5%, however, it would enhance their liquidity position.

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