Topline Flash Note: Pakistan Power: Energy Sukuk II payments distributed in four different installments
- To recall, a few weeks ago, government had issued Energy Sukuk II of Rs200bn with an aim to reduce the stock of circular debt in the economy and to resolve power plants working capital issues during the peak summer season.
- Initially, distribution of Energy Sukuk II payments were widely reported, which was the first installment. However, based on our channel checks there have been three further distributions, wherein we have extracted allocations to the listed IPPs in the table below.
- Lalpir Power (LPL) and Pakgen Power (PKGP) have received total payments of Rs924mn and Rs1,178mn, respectively – enabling them to announce cash payouts of Rs1.25/share today.
- Nishat Power (NPL) and Nishat Chunian Power (NCPL) also have received total payments of Rs2,248mn and Rs2,485mn respectively. These companies have project loans payables of Rs1.5bn and Rs1.3bn, respectively. Adjusting this amount, both IPPs can potentially declare cash payouts of Rs1.5-2.0/share.
- Engro Power Qadirpur (EPQL) has an outstanding project loan of Rs924mn. Adjusting this amount against cash received, EPQL can also declare a potential dividend.
- Hub Power company (HUBC) has also received stake adjusted amount of Rs10.2bn which we believe will be used for payment of fuel to PSO and retirement of long-term debt.
Nonetheless, decision to announce payouts are subject to future cash needs of the company. Our payout expectations can deviate from actual announcements.
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).
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.