KARACHI: K-Electric Limited (KE) announced it would establish a new company to operate the under-development coal-fired power plant of 700MW at Port Qasim, according to a bourse filing on Tuesday.
“KE Board of Directors has approved incorporation of a new joint venture private limited company under the Companies Ordinance 1984,” said a notification of the power firm to Pakistan Stock Exchange. The new company is being established relating to development of a 700-megawatts (2x350-megawatts) coal-fired power plant at Port Qasim, Karachi, jointly with China Datang Overseas Investment Company and China Machinery Engineering Company, it said in the notification. K-Electric’s net profit surged 40% in the nine-month ended March 31, 2016, backed by boost in sales and drop in cost of purchase and production of electricity.
The power firm’s net profit increased to Rs22.79 billion in the under review period from Rs16.28 billion in the same period last year. This translated into earning per share at Rs0.83 as compared to Rs0.59 in the corresponding period, K-Electric said in a notification to Pakistan Stock Exchange.
The share price of the firm declined 1.11% to Rs7.08 with a turnover of 12.88 million shares in a bull-run session.
The net sales increased 13% to Rs118.25 billion in the under review period from Rs104.77 billion in the same nine-month last year.
The expenditure on account of purchase of electricity dropped 26% to Rs40.62 billion on year-on-year basis. The expenditure on account of consumption of fuel and oil lowered four percent to Rs39.92 billion.
Published in The Express Tribune, April 27th, 2016.
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