Kot Addu Power Company Limited (KAPCO) is scheduled to announce its 3QFY22 financial result on Apr 21st 2022. We expect, the company to post a profit after tax of PKR 3,058mn (EPS: PKR 3.47) during 3QFY22, down by 31% YoY. Lower capacity payments is the primary reasons behind the decline in earnings.

Sales expected to increase by 88% YoY to PKR 21.8bn during 3QFY22 due to higher dispatches along with higher FO, HSD and RLNG prices. Load factor of the company expected to increase by 141% YoY to 845 GWh during 3QFY22 due to higher demand from power purchaser. Other income expected to increase by 43% YoY to PKR 3.2bn due to higher interest rates and investments, we also expect company to book tariff true-up due PKR depreciation. Finance cost also expected to increase by 4% YoY on the back of higher interest rates.

We do not expect any payout during the quarter, however the company has PKR 55.2bn (PKR 62.7/share) cash and cash equivalent on its book as of Dec’21.

Courtesy – AHL Research