Kot Addu power company (KAPCO) announced its financial result for 1HFY15. Company profit after taxation (PAT) robustly up by 70% to Rs 4.83 billion (EPS: Rs 5.49) compared to Rs 2.84 billion (EPS: Rs 3.23) for the corresponding period last year. Better earning was evident due to lower maintenance cost against last year same period of higher maintenance cost due to major overhaul of steam & gas tribunes along with surge in other income. In 2QFY15, company posted net earnings of Rs 2.42 billion (EPS: Rs 2.75) in 2QFY15 against Rs 1.11 billion (EPS: Rs 1.27) in 2QFY14, depicting surge of 117% due to higher indexation and no major repair & maintenance cost. The corporate results accompanied with a first interim cash dividend of Rs 4/share.
Higher generation propelled revenue
Despite reduction in Low Sulphur Furnace oil prices, net sales of the company increase by 3% YoY to Rs 58.39 billion as against Rs 56.93 billion same period last year mainly due to higher generation. The net output from the plant was 3,598 GWh of electricity (1HFY14: 3,115 GWh), resulting in a load factor of 60.7% (1HFY14: 52.5%) and an overall commercial availability of 90.2%. The fuel mix for the dispatched output to WAPDA was 5.5% on gas, 93.1% on Low Sulphur Furnace Oil and 1.4% on High Speed Diesel.
Financing cost hike by 133%
Financing cost increased by 133% to Rs 4.10 billion versus Rs 1.76 billion in identical period last year mainly due to higher short term borrowing. Similarly, other income surge by 144% to Rs 3.84 billion as against Rs 1.57 billion corresponding period last year mainly due surge in penal income from overdue receivables. Net interest income remain marginally unfavorable as it showed negative amount of Rs 265 million 1HFY15 versus net income of Rs 191 million in corresponding period last year.

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KAPCO – Enormous Rise in Profitability