KAPCO to announce a cash dividend of PKR 2.00/share along with the result of 2QFY23

Kot Addu Power Company Limited (KAPCO) is scheduled to announce its 2QFY23 financial result on Feb 22nd 2023. We expect the company to post a profit after tax of PKR 1,264mn (EPS: PKR 1.44) during 2QFY23. Sales of the company are projected to dip by 91% YoY I 92% QoQ. The decline in sales is expected due to the completion of PPA on Oct 24th, 2022 and the plant has been out of operations since then. However, NEPRA has renewed the company’s generation license till Sep 24th 2024.

The company has also submitted an application for a reference generation tariff and is waiting for a positive response from the regulator. Other income is projected at PKR 3.6bn in the quarter under review, depicting a dip of 7% YoY, due to lower levels of overdue receivables. Finance cost is forecast to increase by 103% YoY on the back of higher interest rates. This will take the 1HFY23 earnings to PKR 3,373mn (EPS: PKR 3.83), down by 40% YoY.

We expect the company to announce a cash dividend of PKR 2.00/share along with the result.

Courtesy – AHL Research 

Posted in Energy News.

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