The management of KAPCO held an analyst briefing today to discuss the FY22 results and give an outlook of the Company in the future.
Below are the key takeaways.
· To recall, KAPCO announced a profit after tax (PAT) of PKR 9.9bn (EPS: PKR 11.24) during FY22, down by 3% YoY due to i) lower true-up income and higher taxation due to imposition of super tax. The Company’s energy purchase price (EPP) increased by 195% YoY to PKR 123bn during FY22 due to higher generation (+40% to 4,980 GWh) and higher energy prices. Capacity purchase price (CPP) increased by 58% to PKR 13.6bn during FY22.
· The company generation mix during FY22 remained as: RLNG 36.3%, LSFO 62.6% and HSD 1.1% compared to RLNG 64.8%, LSFO 31.8% and HSD 3.3% during FY21. The share of LSFO increased during FY22 due to the gas shortage.
· The management disclosed that the Company had paid a total dividend of PKR 146.9bn (PKR 166.8/share) since 1996 | PKR 111.2bn (PKR 126.4/share) since listing.
· The management mentioned that the Company’s installed capacity is 1,600 MW (10 multi-fired Gas turbines and 5 stream turbines). The KAPCO’s installed capacity is ~3.7% of Pakistan’s total electricity (7.8% of all thermal IPPs) generation capacity.
· The Company has 156K tons LSFO storage and 40mn liters of HSD storage capacity, the management mentioned.
· As per the management, the Company has Black Start Generator Facility in case of country wide blackout.
· As per technical assessment of Ramboll UK, the plant has a useful life of more than 10 years.
· The management also mentioned that the Company has Gas turbines of optimum size and capable of quick start/stop both on Gas and Liquid fuel.
· Currently, the Company is not selling electric power to power purchase, the management mentioned. However, it has applied for provisional tariff.
· The management mentioned that the IGCEP has included the KAPCO plant till 2026.
· The KAPCO’s management disclosed that the plant is the most efficient in the region.
· The management is actively pursuing expansion plans, including renewables.
Courtesy – AHL Research