AKD Research has published a report on the recent analyst briefing of Engro Powergen Qadirpur Ltd (EPQL), where the company updated investors on its financial results and future outlook. Key points from the briefing include:

– The company reported a Net Profit After Tax (NPAT) of PKR 460 million (Earnings Per Share: PKR 1.42), marking a 71% year-on-year decline during the reported period. The decrease in profitability is attributed to: i) a reduced load factor, ii) a transition to a hybrid take-and-pay model during the year, and iii) a decrease in financial income.

– During the reported period, the company’s electrical output reached 363 GWh, with a load factor of 39%. This is a decline compared to 437 GWh and a load factor of 46% in the same period last year.

– In February 2025, the company signed an amendment agreement with the authorities, leading to a shift toward a hybrid take-and-pay regime.

– Following this agreement, the company received a bullet payment in March 2025, enabling it to distribute dividends of PKR 10 per share during the reported period, as stated by management.

– Receivables as of 2QCY25 amounted to PKR 2.7 billion, reflecting a 75% year-on-year decrease from PKR 10.5 billion in the same period last year. This reduction is primarily due to the receipt of the bullet payment from CPPA-G. While the collection rate remains below 100%, it has improved compared to previous years.

– The company has improved its position in the NTDC’s merit order, currently holding the 9th position, up from 11th.

– The company scheduled a 20-day outage in May 2025; however, its availability factor stood at 100% during the reported period.

– Management noted positive changes in the country’s macroeconomic environment, with a 4% year-on-year increase in power demand during the reported period. They anticipate this growth trend to continue throughout the year.

– The management is currently awaiting regulatory approvals to initiate gas supply from PEL and is actively engaging with the authorities regarding this issue. Furthermore, the company is exploring additional fuel alternatives to enhance the plant’s load factor.