KAPCO_RLNG cannot make receivables go away, (AKD Daily, Oct 05, 2017)
Recapping on FY17 operational metrics for KAPCO, we highlight the pervasiveness of generation on RLNG, associated improvements in thermal efficiency and lower fuel costs (vs. HSD/LSFO). Citing the fundamentals in place to continue the shift to generation on RLNG, we believe the relatively nascent (completed in 1996) Block-2 of KAPCO (762MW) will gain prominence, going forward. At any rate, the balance sheet picture shows continued deterioration of the receivables picture, where trade debts from WAPDA climbed 31%YoY to PkR76.9bn. Resultantly, higher load factors from low cost RLNG present a double edged sword, where raised receivables are likely to ensue. Headway on bid submission for 17.36% stake in HUBC and contractual obligations for clearance of dues before conclusion of current 25yr PPA are key flashpoints for the IPP. For the time being an investment case based on yield remains appealing (FY18/19F D/Y of 10.7/9.7% vs. 5YR PIB yield of 7.62%)
Kot Addu Power Co Ltd. Kot Addu Power Company Limited is a Pakistan-based power generation company. The Company's principal activities are to own, operate and maintain a multi-fuel fired power station with approximately 15 generating units with a nameplate capacity of 1,600 megawatts (MW) in Kot Addu, District Muzaffargarh, Punjab, Pakistan. The Company also sells the electricity produced therefrom to a single customer, the Pakistan water and power development authority. The power plant is a multi-fuel gas-turbine power plant using three fuels to generate electricity: gas, light sulfur furnace oil and high speed diesel. The plant's combined cycle technology enables it to use the waste heat from the gas turbine exhaust to produce steam in the heat recovery steam generator, which in turn is used to run the steam turbines.
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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