Saif Power Ltd (SPWL) hosted its analyst briefing earlier today to discuss performance for the calendar year 2024 and share insights on its future outlook. Below are the key highlights.
* Company posted revenue of PkR9.7bn during the outgoing year, down by 49%YoY. The decline was due to an 8.23% decrease in utilisation in CY24 (compared to 24.6% in CY23). However, the plant’s availability factor stood at 94.2%, higher than the 84.6% recorded in the calendar year 2023 (CY23).
* Company posted bottom-line of PkR133mn (EPS: PkR0.35), downv60%YoY. Besides the earnings, the company also announced a cash dividend of PKR 1.25/share, compared to PKR 4.29/share in CY23.
* Achieving COD in Apr’10, company operates a 225MW combined-cyclevdual-fuel power plant based in Qadirabad, Sahiwal. The plant uses RLNG as the primary fuel, with HSD as a backup fuel.
* During the year, the company entered into a PPA amendment agreement with the authorities, which involved ROE being tied to a hybrid take-and-pay model alongside downward indexation adjustments to operating and maintenance (O&M) costs.
* On Mar 28th, SPWL received PkR5.2bn in principal outstanding receivables from CPPA-G related to dues pending as of Oct 31st. However, the late payment surcharge of PkR 1.36 billion was waived under the amended PPA terms.
* Management stated that receivables have begun to accumulate again, currently between PkR2-2.5bn. Recent government initiatives to clear circular debt may result in clearances for SPWL. However, its timing remains uncertain.
* Management indicated that any excess surplus cash on hand will be distributed to shareholders. Notably, the company presently has cash and investments of PkR 5.2 billion (PkR 13.5/share) as of March ’25.
* The company is awaiting revised tariff approval from NEPRA, following which discussions will commence with the authorities.
* The sale of a 96.6% stake in Saif Cement Ltd (SCL) has been completed, with full proceeds realised during the year.
* The company remains willing to participate in the CTBCM model, where management prefers direct transactions with bulk power consumers rather than continuing solely through CPPA-G.
Management anticipates that the country’s power demand will recover during CY25, as macroeconomic indicators show signs of improvement, including falling inflation and interest rates.
Courtesy – AKD Research
