Lalpir Power Ltd (LPL) held an analyst briefing today to discuss its financial results for 2024 and its future outlook. The company operates a 362MW RFO-fired steam turbine and recently entered into an early termination agreement for its Power Purchase Agreement (PPA), effective October 2024.

The briefing revealed a stark decline in the company’s performance. For CY24, the company reported a net profit after tax (NPAT) of PkR464.8 million (EPS: PkR1.22), a dramatic 90% decrease from PkR4.5 billion (EPS: PkR12.05) in the previous year. This downturn was mainly due to reduced revenues and costs associated with the PPA termination. The company also announced a cash payout of PkR4.0 per share.

As of March 2025, Lalpir Power holds PkR9.6 billion in cash and short-term investments, primarily in mutual funds. The company plans to maintain generation under the Competitive Trading Bilateral Contract Market (CTBCM) and serve bulk power consumers through wheeling agreements with distribution companies.

Management is exploring new business opportunities in the agriculture and textile sectors but prefers to reserve surplus revenue for dividend payouts as a last option. Additionally, there are no plans to convert the plant to coal, as authorities have stifled investments in imported coal-fired projects.

LPL’s other expenses soared to PkR1.4 billion (up 47 times YoY) in CY24, largely due to trade debt write-offs related to LPS and losses incurred on furnace oil sales. Notably, the estimated fair value of the company’s plant exceeds its net book value of PkR14.8 billion (PkR39/share) as of March 2025.

Courtesy – AKD Research