K-Electric posts Rs32.8bn annual profit

KARACHI: After a delay of more than nine months, K-Electric Ltd finally released its financial results for 2015-16 on Wednesday.

It posted a profit of Rs32.8 billion (earnings per share: Rs1.19), reflecting 16 per cent growth over the income of Rs28.3bn in 2014-15.

Its share price rose by nine paisa to Rs6.87 on trading in 15 million shares.

Net sales remained steady at around Rs190bn for both years. But there was a noticeable decline in the cost of sales, which dropped 11pc to Rs132bn. This helped lift gross profit by 34pc to Rs58bn.

The prepayment of expensive long-term financing and decline in working capital requirements as a result of lower furnace oil prices helped the company reduce financial charges by 48pc to Rs5.1bn.

Energy-sector analysts said the April-June quarterly results were in line with their expectations. Analyst Rai Omar Basharat at Topline Securities stated that the quarterly profit amounted to Rs10bn, down 17pc year-on-year.

In the fourth quarter, the company’s top line grew 11pc to Rs56.5bn on the back of higher sent-out units owing to warmer weather. It led to receipt of higher tariff adjustment payments.

Gross profit in April-June improved 12.7 percentage points to 35pc. The improvement was attributed to higher self-generation of electricity, leading to lower electricity purchase from more expensive external sources and higher thermal efficiency.

The company’s sponsors, Abraaj Capital, remain in protracted talks for the sale of shares and management control to Shanghai Power of China.

Courtesy by: https://dawn.com/