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.

Brief 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