KARACHI: Kot Addu Power Company’s (Kapco) profit rose 38% to Rs2.58 billion in the quarter ended March 2017 primarily in the wake of higher sales, according to a bourse filing on Friday.
The independent power producer had registered a profit of Rs1.87 billion in the same quarter last year. Earnings per share (EPS) improved to Rs2.94 from Rs2.13.
Kapco’s stock price surged 1.37%, or Rs1.03, to Rs75.92 with a volume of 848,500 shares at the Pakistan Stock Exchange (PSX).
Arif Habib Limited said in post-result comments that the surge in sales was mainly driven by higher dispatches of 1,929 gigawatt-hours (up 67% quarter-on-quarter and 30% year-on-year) along with higher furnace oil (fuel) prices, which depicted a hike of 79% on a yearly basis.
In the nine months ended March 31, Kapco’s profit rose 9% to Rs6.76 billion (EPS Rs7.68) from Rs6.20 billion (EPS Rs7.05) in the corresponding period of last year.
In nine months, gross profitability expanded 8% to Rs9.62 billion whereas sales increased 13% to Rs54.20 billion, according to JS Global Research.
“Primary reasons for higher net earnings were higher efficiency gains due to increased gas-based generation (21% of total generation mix vs 13% in 9MFY16) and 20% increase in other income, which we believe was most likely driven by improved penal mark-up income,” the brokerage house said.
Published in The Express Tribune, April 22nd, 2017.