KAPCO posts Rs9.07b in profit, down 7% YoY

Decline due to lower sales, other income; company announces final cash dividend of Rs4.75 per share

KARACHI: Kot Addu Power Company’s (KAPCO) profit decreased 7% to Rs9.07 billion in the fiscal year ended June 30 due to lower sales and other income, according to a bourse filing on Thursday.

The company earned a profit of Rs9.79 billion in the preceding year. Accordingly, the earning per share stood at Rs10.31 in the year under review compared to Rs11.13 in the previous year, said the company in a notification to Pakistan Stock Exchange.

The Board of directors (BoD) recommended final cash dividend of Rs4.75 per share. This is in addition to interim dividend already paid at Rs4.25 per share.

Brokerage houses said the result was higher than market expectations. However, it failed to motivate investors, as the share price lowered by Rs0.38 and closed at Rs87.05 with a volume of 5.54 million shares.

The sales declined by 37% to Rs64.17 billion owing to fall in furnace oil and lower sales of electricity units during the year. Jehanzaib Zafar at BMA Capital said in a post result comment that the sales decreased “owing to a 45% year-on-year (YoY) decline in fuel prices and overhauling of the boilers.”

Tahir Abbas at Arif Habib Limited added that the electricity production declined by 5.2% on year-on-year basis to 6,557 GWh (load factor at 56%).

The other income declined by 36% to Rs4.04 billion from Rs6.32 billion last year.

However, gross margins recovered by 6% in FY16 owing to lower operations and maintenance expenses. Finance cost decreased 48% to Rs3.2 billion on the back of “better liquidity position owing to lower quantum of circular debt and lower average discount rate in FY16, they said.

Published in The Express Tribune, September 2^nd, 2016.

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