EUR 4.42 For Business Accounts Only

Intermarket Pulse: Pakistan IPPs: Subdued FY17 earnings; modest payout likely

• IMS Universe IPPs’ cumulative profits for FY17 are projected to be PkR35.35, down 2%YoY in FY17. In 4QFY17 alone, the cumulative earnings are expcted to post 1%YoY decline. Except for KAPCO, there was not any major jump in utilization in 4Q; and payouts overall are expected to be modest.

• For 4QFY17, we expect HUBC to post consolidated EPS of PkR2.04 where lower dispatch factor shall keep O&M payments in check. In full year FY17, overhauling of Narowal engines is expected to hurt profitability (FY17F EPS: PkR8.63, down 16%YoY). For KAPCO, we expect 4QFY17 EPS of PkR3.38 (FY17F EPS: PkR11.66).

• NPL is expected to post 4QFY17 EPS of PkR1.59, up 45%YoY, as the company recorded a provision worth PkR290mn in 4QFY16 results. NCPL is expected to post an EPS of PkR1.61 in 4QFY17 where the turnaround on YoY basis is led by higher dispatch factor and increase in average oil price.