· Power generation for the month of Jan’24 clocked in at 8,314GWh, increasing by 9.1%MoM while falling by 2.3%YoY compared to 8,515GWh in SPLY

· Hydel generation remained down during the month, with output clocking in at 924GwH (down 50%MoM), with a share in total generation standing at 11.1% compared to 36.5% and 24.4% in Nov’23 and Dec’23, respectively.

· Average cost of generation experienced a sharp increase during Jan’24, rising by 33%MoM, standing at PkR15.50/KWh vs. PkR11.70/KWh in Dec’23.

· The significant rise is primarily due to the hefty increases in generation from higher-costing thermal plants (RLNG, Coal and RFO) and the concurrent decrease from cheaper fuel sources, i.e. Hydel.

· HUBC remains our top pick inside the power generation space, with a Dec’24 TP of PkR170/sh, alongside promising dividend yields of 17%/26% for FY24/FY25, respectively.

Courtesy – AKD Research