KARACHI: Lalpir Power Ltd (LPL) posted an after-tax profit of Rs995 million in 2016, representing a year-on-year growth of 17 per cent. Earnings per share rose to Rs2.62 from Rs2.20.
The financial results were accompanied by a final cash dividend of Rs1 per share, taking the full-year payout to Rs2 per share. The results were thought to be in line with market expectations.
However, the power producer’s top line plunged 30pc to Rs15.4 billion in 2016. Analyst Mehwish Zafar at JS Global believed that the hit mainly came on the back of lower power despatches (load factor 52pc versus 62pc in 2015).
This however, resulted in minimal fuel losses for the independent power producer, translating into 4pc year-on-year growth in operating profit. Moreover, finance costs also decreased 11pc year-on-year to Rs718m due to lower interest rates.
Analysts at Foundation Securities attributed the rise in profitability to the absence of one-time loss of Rs242m from the sale of disposal of operating asset in the latest year. They reckoned that efficiency losses would not be a concern for LPL if it opted for coal conversion project.
PAKGEN POWER LTD: The company’s profit plummeted 68pc year-on-year to Rs517m in 2016, translating into earnings per share of Rs1.39.
Profit particularly took a hit in the last quarter of 2016, falling 93pc year-on-year and 26pc quarter-on-quarter to Rs178m (Rs0.48 per share).
The company declared final cash dividend of Re1 per share, translating into a full-year payout of Rs2 per share.
The power producer’s net revenue surged 146pc year-on-year to Rs16.04bn in 2016, which analysts said was on account of better load factor (load factor 52pc vs. 8pc in 2015).
Nevertheless, higher power despatches did not translate into better profitability as the gross profit was squeezed by 34pc year-on-year to Rs1.32bn.
Observers blamed depressed profitability on higher fuel losses, as the plant resumed operations during 2016 (resulting in better load factor), after remaining shut for most of 2015 due to transformer issues.
Published in Dawn, March 21st, 2017