Kapco’s profit drops an impressive 56.6%
According to a market filing, the Kot Addu Power Company (Kapco) generated a net profit of Rs10.229 billion for the fiscal year ending June 30, 2021, a drop of 56.60 percent from the previous year’s profit of Rs23.60 billion.
Earnings per share (EPS) for the fiscal year ended June 30, 2020, were Rs11.62, compared to Rs26.83 in the preceding fiscal year ended June 30, 2020. Along with the financial results, Kapco did not announce any payouts.
The drop in profitability may be ascribed to an Rs19.28 billion capacity purchase price adjustment, which resulted in net sales of Rs50.34 billion in FY21, down from Rs71.54 billion in FY20.
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Other revenue fell 36.50 percent to Rs13.20 billion in FY21, compared to Rs20.80 billion in FY20.
Similarly, due to the current low-interest-rate environment, the finance cost decreased by 63.10 percent to Rs3.1 billion throughout the year.
The administration struck a fundamental deal with the Independent Power Producers in August of last year (IPPs). Payments would be given just for the electricity bought and used under the new arrangement negotiated with the IPPs, rather than the whole installed capacity of a certain power plant. In addition, rather than US dollars, the equity return would be made in rupees.
Published in Lahore Herald #Kapco, #KapcoProfit, #PakistanBusinessNews Published in Lahore Herald