Kot Addu Power Company Limited (KAPCO) is scheduled to announce its 4QFY23 financial result on Sep 6th 2023. We expect, the company to post a profit after tax of PKR 675mn (EPS: PKR 0.77) during 4QFY23. The company is expected to report zero sales during 4QFY23 due to the completion of PPA on Oct 24th, 2022, the plant has been out of operations since then. However, NEPRA has renewed the company’s generation license till Sep 24th 2024 and recently approved a provisional tariff which is applicable from Aug’23.

Other income is forecast to increase by 29% YoY, the rise is expected on the back of higher interest rates. This will take the FY23 earnings to PKR 4.6bn (EPS: PKR 5.17), down by 54% YoY. We expect the company to announce a cash dividend of PKR 4.0/share along with the result (FY23 DPS: PKR 7.5/share).

Courtesy – AHL Research