·        NCPL operates a 195.7MW RFO-fired thermal power plant located in District Kasur, Punjab.

·        To recall, company reported loss of PkR3.4bn (LPS: PkR9.2) during FY25, a significant drop from profit of PkR4.9bn (EPS: PkR13.4) during FY24. The contraction in the bottom line was due to the disallowance of delayed markup payments and a reduction in tariff components.

·        During the outgoing year, prime minister’s constituted task force engaged with the IPPs to revise PPA agreements, with major changes including i) ROE component structured under hybrid take-and-pay, with 35% fixed and 65% variable, ii) US$ linked O&M foreign indexation capped at 70%, iii) local O&M capped at lower of 5% or actual NCPI, and iv) insurance premium capped at 0.9% of EPC from FY26.

https://research.akdsl.com/638996744200711391.pdf

AKD Research