The management of Nishat Chunian Power Limited (NCPL) held a Corporate Briefing session today to discuss the company’s performance and future outlook.

Brief Takeaways

·      To recall, the company posted a profit after tax (PAT) of PKR 2,505mn (EPS: PKR 6.82) in FY22 compared to PKR 2,509mn (EPS: PKR 6.83) in FY21. Alongside the result the company also disclosed a cash dividend of PKR 10/share.

·      Plant availability of the plant remained 91.54% during FY22 compared to 97.84% during FY21.

·      Capacity factor of the plant remained 51.47% during FY22 compared to 31.35% during FY21.

·      The company generated 882GWh during FY22 compared to 538GWh during FY21, +64% YoY. The rise in generation is witnessed due to higher demand from power purchaser, the management disclosed.

·      As of Jun’22, the receivables of the company decreased to PKR 13,718mn compared to PKR 20,450 as of Jun’21. The decline in receivables was witnessed due to payment by Gov’t during the year. The Gov’t has paid PKR 14,619mn to NCPL in two instalments, one in Jan’22 (PKR 5,848mn) and the other one in Jun’22 (PKR 8,771mn).

·      On the issue related to excess profit, the management disclosed that a three member committee of retired supreme judges has been formed. One member is appointed from IPPs’ side and one from the Gov’t and these both have jointly appointed the third member. The management believes that they have strong grounds to defend their position.

Courtesy- AHL Research