KAPCO Profit Dips by 74% in Q3 Due to Production Hiatus

Kot Addu Power Company Limited (PSX: KAPCO) announced its financial results for the three months that ended on March 31, 2023 (3QFY23).

According to the company’s results for 3QFY23, it posted a profit after tax of Rs. 689 million, which is 73.7 percent lower than Rs. 2.62 billion in 3QFY22. This takes the 9MFY23 profits to Rs. 3.87 billion, down by 52.9 percent from Rs. 8.22 billion in 9MFY22.

KAPCO’s sales collapsed by 99.5 percent to Rs. 128.4 million in 3QFY23 from Rs. 23.56 billion in the same period last year (SPLY). The Company reported sales of Rs. 25.29 billion in 9MFY23, which is 67.2 percent lower than Rs. 77 billion in 9MFY23.

The decline in earnings is attributable to the completion of PPA on October 24, 2022, with the plant being out of operations since then. However, NEPRA has renewed the company’s generation license till September 24, 2024. The company has also submitted an application for a reference generation tariff and is waiting for a positive response from the regulator, according to Arif Habib Limited (AHL).

Conversely, the other income of KAPCO depicted a growth of 51 percent YoY during 3QFY23 which is attributable to higher interest rates, however, overdue receivables and investments witnessed a decline. Meanwhile, the finance cost witnessed a jump of 47 percent YoY during the period in review on account of higher interest rates.

Other expenses during 3QFY23 increased to Rs. 477 million compared to Rs. 0.25 million in SPLY due to market losses on Pakistan Investment Bonds (PIBs) and SUKUKs.

The power company paid Rs. 360.7 million in taxes during 3QFY23, taking overall tax paid for 9MFY23 to Rs. 2.05 billion.

The company reported earnings per share (EPS) of Rs. 0.78 in 3QFY23 and an EPS of Rs. 4.40 for 9MFY23.

At the time of filing, KAPCO’s scrip at the bourse was Rs. 24.2, down 4.46 percent or Rs. 1.13 with a turnover of 3,579,325 shares on Wednesday.

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