Topline Securities Limited - Pakistan Power: Energy Sukuk-2 Payment; IPPs to get money mostly relating to EPP component

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Topline Securities Limited

Sunny Kummar

EUR 30.00 For Business Accounts Only

Pakistan Power: Energy Sukuk-2 Payment; IPPs to get money mostly relating to EPP component

The government is expected to disburse payments to the IPPs following the successful issuance of Pakistan Energy Sukuk-2 soon.
As per our channel checks, the listed IPPs are likely to receive the amounts mentioned in the table below.
KAPCO is likely to receive the highest payment amongst the listed companies of Rs11,675mn (Rs13/share). HUBC is expected to receive Rs6,595mn (Rs5/share, adjusted for stake in China Power Hub Generation).
Since majority of the payments pertains to Energy Purchase Price (EPP) component compared to Capacity Purchase Price (CPP), excluding NPL and NCPL, we believe major portion of this cash is likely to be passed on to the fuel suppliers i.e. SNGP and PSO.

As a result, we do not expect any major dividend announcements following this development.

04/06/2020 3 EN

Provider

Topline Securities Limited

Topline Securities is one of the fastest-growing brokerage houses in Pakistan. It has strong Equity Brokerage, Economic/ Equity Research, Commodity Trading and Corporate Finance & Advisory functions.

Topline Securities has been endowed with numerous awards by renowned international financial organizations. The highlights of which consists of the award for ‘Best Local Brokerage House of Pakistan’ by Asiamoney Brokers Poll (the largest Asia-focused equity services provider poll) in 2016 and ‘Best Equity Brokerage House’ by CFA Society Pakistan in 2015.

Previously, Topline Securities held the title for ‘Best Brokerage House’ for 4 consecutive years (2011-2014) by Asiamoney Brokers Poll. Other awards include the ‘Best Salesperson’ award by Asiamoney for 6 consecutive years (2011-2016), the ‘Arabia Fast Growth 500’ award and ‘Pakistan Fast Growth 100’ award in 2012 and 2013 by AllWorld Network.

JCR-VIS, a credit rating agency providing independent rating services in Pakistan has assigned initial rating of “A-2” for short term and “A” for long term to Topline Securities. Topline Securities is registered as Underwriter, Book Runner and Research Entity with Securities & Exchange Commission of Pakistan (SECP).

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Analysts

Sunny Kummar

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Pakistan Power: Energy Sukuk-2 Payment; IPPs to get money mostly relating to EPP component

Pakistan Strategy: Foreign selling at PSX; Will this trend continue in 2021?

Pakistan Strategy: Pakistan Outlook 2021 based on Topline Poll

Pakistan Automobiles: Car sales (including KIA) up ~63% YoY in Nov-2020

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