KAPCO’s profits surge 36% to Rs3.7 billion

Power firm announces interim payout of Rs3 per share.


Our Correspondent February 21, 2013
Rs29b is the benefit realised by Kapco on the back of the TFC issued by the govt in September 2012. ILLUSTRATION: JAMAL KHURSHID

KARACHI:


Kot Addu Power Company (Kapco) reported a profit of Rs3.68 billion in the first half of the fiscal year 2012-13, up 36%, from a profit of Rs2.7 billion in the corresponding half of the preceding year. In the second quarter of fiscal 2013, the company witnessed a 10% growth in profits to Rs1.93 billion.


The power firm also announced an interim dividend of Rs3 per share for the period, according to a notice sent to the Karachi Stock Exchange.

On a quarter-on-quarter basis, Kapco’s top-line fell about Rs10 billion (35%) to Rs19.2 billion from Rs29.4 billion mainly due to lower utilisation, which clocked in at 34%% compared with 62% in the first quarter of fiscal 2013, said a Global Securities analyst note. Whereas on a half-year on half-year basis it is a different story as revenues climbed 5% to Rs48.7 billion.



Finance cost eased off 43% in the quarter as regular payments by the Government of Pakistan and a benefit of Rs29 billion due to the term-finance certificate issue in September 2012, which restricted the amount owed to the Pakistan State Oil at Rs9.25 billion for the company.

Tax rate remained at 33% against the corporate tax rate of 35% due to balancing, modernisation and replacement (BMR) 10% tax credit which started in fiscal 2012. On a half-yearly basis, taxation increased 63% as the company realised tax rate of 30% for the year.

Other operating income shrunk 31% in the second quarter on the back of recovery of Rs17 billion from overdue receivables in the previous quarter.

Published in The Express Tribune, February 22nd, 2013.

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