Engro Powergen Qadirpur Ltd Reports Increased Generation and Profitability in CY23

Karachi, Engro Powergen Qadirpur Ltd (EPQL) has shown a significant performance increase in the calendar year 2023, as detailed in the company’s latest analyst briefing. The company reported a total generation of 870GWh, up from 768GWh in CY22, achieving a billable capacity factor of 100% and a load factor of 46% for the year. Additionally, EPQL announced a substantial growth in its consolidated earnings, marking a 71% year-on-year increase.

According to AKD Securities Limited, EPQL's management discussed several key points during the briefing, including the company’s financial performance and strategic developments. Notably, the company managed to reduce its receivables to PkR10.52bn from PkR12.86bn in 1QCY23, with a receivables collection rate exceeding 100%, effectively clearing the backlog of overdue payments.

A significant development for EPQL in CY23 was the approval by NEPRA to modify its generation license, allowing the use of gas from the Badar Gas field as an alternative low BTU gas source. This approval is expected to enhance the company’s generation outlook and its position in the NTDC's Economic Merit Order. The anticipated gas supply of 8-13 MMCFD from the Badar Gas field, at a cost of US$5.6/MMBTU, coupled with efforts to explore additional low BTU gas options, positions EPQL for sustained future performance.

Despite the country's power demand remaining subdued due to macroeconomic challenges, EPQL's proactive measures and strategic initiatives have led to improved profitability, with consolidated earnings of PkR2.51bn (EPS: PkR7.76) in CY23 compared to a PAT of PkR1.47bn (EPS: PkR4.54) in the previous year.

The briefing highlighted EPQL's commitment to enhancing its operational efficiency and financial health, underlining the company's strategic direction towards securing a sustained gas supply and optimizing its generation capabilities.