Karachi, February 27, 2026 – Sui Southern Gas Company Limited (SSGC) announced its financial results for the half-year ended December 31, 2025, revealing Rs47 billion in receivables from K-Electric Limited (KE) and Pakistan Steel Mills Corporate Limited (PSML).
According to the financial statements submitted to the Pakistan Stock Exchange (PSX), trade debts include Rs25.29 billion from KE and Rs21.77 billion from PSML. A significant portion of these receivables is overdue but has been classified as current assets, with management considering them recoverable under normal circumstances.
Late Payment Surcharge Disputes
SSGC noted that both KE and PSML have disputed the Late Payment Surcharge (LPS) on their outstanding balances. As a result, the company will recognize LPS from these entities on a receipt basis, effective July 1, 2012, as disclosed in notes 7.1 and 7.2 of the condensed unconsolidated interim financial statements.
Recovery Uncertainty
Due to the adverse financial and operational conditions of PSML and ongoing disputes with KE and PSML over LPS, SSGC stated that it cannot determine the full recoverability of these amounts or the timeframe for collection. The company emphasized that the outstanding receivables remain a significant challenge impacting its cash flow and financial planning.
SSGC’s disclosure highlights ongoing challenges in the energy and industrial sectors, emphasizing the importance of effective debt management and regulatory enforcement to safeguard utility revenues.
Disclaimer:
This article is for informational purposes only and does not constitute financial or investment advice. Investors should review official company disclosures and consult financial advisors before making decisions.