Kapco profit declines whopping 56.6%

KARACHI: The Kot Addu Power Company (Kapco) has earned a net profit of Rs10.229 billion for the year ended June 30, 2021, down a whopping 56.60 per cent, compared with the profit of Rs23.60 billion recorded in the previous year, a bourse filing said.

The earnings per share (EPS) for the year clocked-in at Rs11.62, compared with Rs26.83 in the previous year ended June 30, 2020. Kapco did not announce any payout along with the financial results.

The decline in the profitability can be attributed to Rs19.28 billion capacity purchase price adjustment, due to which the net sales fell to Rs50.34 billion for FY21, as against Rs71.54 billion in FY20.

The company’s other income also declined 36.50 per cent to Rs13.20 billion in FY21 as against Rs20.80 billion in FY20.

Similarly, the finance cost during the year declined 63.10 per cent to Rs3.1 billion due to the prevailing low interest regime.

In August last year, the government had signed a basic agreement with the Independent Power Producers (IPPs). Under the new agreement signed with the IPPs, the payments would only be made for the electricity acquired and consumed instead of the total installed capacity of a particular power plant. Also, the equity return would be made in rupees rather than the US dollars.

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