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

Power firm announces interim payout of Rs3 per share.

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 22^nd, 2013.

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