EPQL_CY23 Analyst Briefing takeaways ,(AKD Off the Analyst's Desk Feb 27, 2024)
Engro Powergen Qadirpur Ltd (EPQL) held its analyst briefing earlier today, where-in
the management discussed the following:
Company's total generation was recorded at 870GWh during the year, compared to
768GWh in CY22, with a billable capacity factor of 100%. This resulted in a load factor
of 46% for the year.
Company’s receivables during CY23 stood at PkR10.52bn (vs. PkR12.86bn in 1QCY23).
Management stated that receivables collection rate exceeded 100%, leading to clearance of the backlog of overdue payments during this period.
Significant highlight for the company during this period was the approval by NEPRA to
modify EPQL's generation license, allowing the option to utilize gas from the Badar Gas
field (PEL) as an alternative low BTU gas source. Once a GSA with PEL is established,
the field is expected to provide gas supply of 8-13 MMCFD, at a cost of US$5.6/
MMBTU.
Management indicated that this development could lead to an improved generation
outlook for the plant, thereby enhancing its position in the NTDC's Economic Merit
Order. Improved utilization of the plant may also potentially lead to improved collections moving forward.
Management is exploring additional low BTU gas options near the plant to secure sustained gas supply moving forward.
Management noted that the country's power demand is expected to remain subdued
throughout the year due to macroeconomic challenges.
To recall, EPQL posted consolidated earnings of PkR2.51bn (EPS: PkR7.76) in CY23 vs.
PAT of PkR1.47bn (EPS: PkR4.54) in the year before, up 71%YoY.
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
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