Lahore, February 14, 2022 (PPI-OT):The ratings reflect sustained performance metrics of the company. Amid COVID-19 Pandemic despite unfavourable circumstances the Company maintained stability in its turnover. During FY21, units sent out grew by 9.6%, owing to improved macroeconomic factors, along with substantial investment across the power value chain. Further, with targeted loss reduction initiatives, the Company managed to reduce its T and D losses to 17.5% from 19.7% in FY 2020. The performance levels showed further improvement in 3MFY22 when, T and D losses decreased by 3.1% while units billed increased by 3.2%, though units sent out showed a marginal decrease of 0.7%.

With economic revival, the Company’s performance took a notable upsurge in its performance, and reported a net profit of ~PKR 2.9bln in 3MFY22, against a profit of ~PKR 1.1bln in 3MFY21 (FY21: PKR 12bln, FY20: -PKR 3bln). Business risk profile draws support from growing demand for electricity and continuous improvement across various operational metrics. The company continued to add to its asset base: expansion was noted in plants, distribution and transmission.

The Company is pursuing its 900 MW RLNG project on fast-track basis. In addition to this additional supply of 450-600 MW from National Grid has also been achieved through successful completion of rehabilitation works at KDA-Jamshoro lines. The performance metrics in the ongoing financial year has shown similar trends with more focus on the production and sale of power units. At the same time, upholding business and financial metrics is of utmost importance.

For more information, contact:
Analyst,
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com