KARACHI: Kot Addu Power Company’s (Kapco) profit improved 4% to Rs9.44 billion in fiscal year 2016-17 (FY17) on the back of a significant growth in sales and income from secondary sources, according to a bourse filing on Tuesday.
The independent power producer registered a profit of Rs9.07 billion in the preceding fiscal year 2015-16.
Accordingly, earnings per share rose to Rs10.73 in FY17 from Rs10.31 in FY16.
The board of directors recommended a final cash dividend of Rs4.75 per share, taking total dividend payment to Rs9.05 per share in the year, according to brokerage houses.
Resolving issues: Govt urged to address concerns over KAPCO’s privatisation
Kapco’s stock price increased 2.47%, or Rs1.78, to Rs73.65 with 678,000 shares changing hands at the Pakistan Stock Exchange (PSX).
Electricity sales (in rupee terms) surged 28% to Rs81.84 billion from Rs64.17 billion.
“The rise is attributed to higher furnace oil prices (up 29% year-on-year) and higher generation (7,495 gigawatt-hours: load factor 64%), up 14% year-on-year,” Arif Habib Limited said in a post-result analysis.
“The considerable gain in sales failed to fully translate into profit due to higher cost of sales, which rose 33% to Rs67.66 billion from Rs50.77 billion last year,” the report added.
Income from other sources, however, partially extended much-needed support to the power producer in realising higher profit. Other income increased 24% from Rs3.23 billion to Rs4.24 billion.
KAPCO earnings up 38% to Rs2.58b in third quarter
“Other income (likely led by better penal mark-up income) provided partial support to the bottom-line,” said JS Research in a report.
Finance cost surged 37% to Rs4.42 billion from Rs3.23 billion in FY16 due to greater reliance on short-term borrowings, a brokerage house said.
In the last quarter (April-June 2017) alone, profits dropped 8% to Rs2.26 billion (earnings per share Rs2.99) from Rs2.86 billion (EPS Rs3.26) in the corresponding period of FY16.
Published in The Express Tribune, August 23rd, 2017.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.