KARACHI: K-Electric Limited, the leading power generation and supply company, has announced plans to raise Rs12 billion through the issuance of Sukuk.
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KE’s profit up by 161% on high tariff adjustment
KARACHI: K-Electric Limited (KE), the power generating and supply company, on Thursday announced massive 161 per cent growth in net profit for quarter ended September 30, 2021, mainly surge in revenue in the shape of tariff adjustment.
The profit after tax of the KE grew by 161 per cent to Rs2.9 billion for the quarter ended September 30, 2021 as compared with Rs1.11 billion in the same quarter of the last year.
The company announced Rs0.11 as earnings per share (EPS) for the quarter under review as compared with Rs0.04.
The revenue of KE exhibited sharp growth of 33 per cent to Rs114.14 billion for the quarter ended September 30, 2021 as compared with Rs85.55 billion in the same quarter of the last year.
The sales of energy grew by 27 per cent to Rs86.92 billion for the quarter under review as compared with Rs68.40 billion in the same quarter of the last year.
In the head of tariff adjustment, the revenue of the company recorded 58.72 per cent increase to Rs27.22 billion for the quarter ended September 30, 2021 as compared with Rs17.15 billion in the same quarter of the last year.
Cost of sale grew by 36 per cent to Rs97.49 billion as against Rs71.68 billion.
Operating expenses of KE recorded a significant increase to Rs1.81 billion for the quarter ended September 30, 2021 as compared with Rs338 million in the same quarter of the last year.
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K-Electric profit surges five times
KARACHI: The annual profit of K-Electric, the utility company providing electricity to Karachi city, has surged by five times to Rs12 billion for the year ended June 30, 2021.
According to financial results approved by the board of directors on Monday, the profit of the company sharply increased to Rs12 billion for the year 2020/2021 as compared with the loss of Rs3 billion in the preceding fiscal year.
Sale of energy increased to Rs255 billion for the year under review as compared with Rs193.87 billion in the preceding year.
The company claimed tariff adjustment of Rs70 billion for the year 2020/2021 as compared with Rs95 billion in the preceding year.
Cost of sales recorded at Rs265.85 billion for the year ended June 30, 2021 as compared with Rs245 billion in the preceding year.
The company declared gross profit of Rs59.19 billion for the fiscal year 2020/2021 as compared with Rs44 billion in the preceding fiscal year.
Expenses of the company for the year under review increased to Rs32.7 billion as compared with Rs26.79 billion during the preceding fiscal year.
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KE privatization was policy mistake
KARACHI: Privatizing an integrating and monopoly provider of an essential service (i.e. electricity) to over 20 million people was a policy mistake, said a letter written by an advisor to the Prime Minister on Power and Petroleum.
Tabish Gauhar, Special Advisor to the PM on Power and Petroleum, in his response to a letter written by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) stated that unbundle K- Electric (formerly Karachi Electric Supply Company) into separate generation, transmission and (more than one) distribution companies as opposed to handing over its management to yet another single buyer of an integrated utility company i.e. an unbundled KE should be managed by different set of private entities going forward to avoid monopoly control and single point of management failure or success.
“In hindsight, privatizing an integrated and monopoly provider of an essential service (i.e. electricity) to over 20 million people was a policy mistake,” Tabish Gauher said.
In response to FPCCI President, it is further stated that prior to unbundling, reduce the overall cost of electricity for KE (and, therefore, the implied subsidy burden on the government) by integrating its own generation units and its Independent Power Producers (IPPs) into the national network on the basis of economic order dispatch.
“This will also help absorb the excess and relatively cheaper power available in the national grid/pool for the benefit of the entire power sector (lower circular debt), consumers of Pakistan (lower tariff) and reduce the need for KE to set up additional, more expensive, power plants and its own and create space on its balance sheet to finance the augmentation of the Transmission and Distribution network,” it said.
“… our government has already started doing that by increasing power supply to Karachi from the national grid from 650MW to up to 2000 MW, subject to signing a commercial-based power purchase agreement that is still pending,” it added.
The letter sent to FPCCI president further noted that the ministry supported the recommendations presented by various industrial associations to provide choice of retail supply to all the KE’s end-consumers once its exclusivity / monopoly expires in 2023, as in other DISCOs, in line with government’s power liberalization policy.
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K-Electric declares 222 percent growth in quarterly net profit despite massive impairment loss
K-Electric Limited (KE), a leading power generation and supply company, has reported an impressive 222 percent increase in net profit for the quarter ending March 31, 2021.
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SHC dismisses petition challenging KE privatization
KARACHI: Sindh High Court (SHC) has dismissed a constitutional petition that has challenged the privatization of K-Electric, the power distribution company.
In a note sent to Pakistan Stock Exchange (PSX) on Monday, K-Electric Limited said that the court had dismissed constitutional petition bearing No. D1511-2012 titled as KESX Labour Union and Others vs. Federation of Pakistan and others’ along with related petitions on January 21, 2020, whereby the court had dismissed the said petition through which the privatization of the K-Electric Limited was challenged.
The judgment was announced in the open court. However, the certified copy of the afore-noted judgment is still awaited, K-Electric said.
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PSX issues notice to K-Electric to explains unusual price movement
KARACHI: Pakistan Stock Exchange (PSX) on Thursday issued notice to K-Electric Limited to explain unusual movement in its price and volume during past few days trading.
The stock exchange said that under Section 97 of the Securities Act, 2015 and clause 5.6.3 of the PSX Regulations whereby the listed companies are required to respond promptly by disclosing the following to the public if there are unusual movements in the price or volume of its traded securities is observed:
(a) Details of any matter or development of which it is aware that is or may be relevant to the unusual movements, or
(b) A statement of the fact that it is not aware of any such matter or development.
The PSX observed that reviewing the trading data of the company, it had been noted that the volume of KEL had experienced substantial increase during the last few days.
“Please not that in case of any material/price-sensitive information that is likely to affect the market price/volume, you [the company] are required to share the same the exchange for its onward dissemination to all market participant as prescribed under clause 5.6.1 of the PSX Regulations.”
In view of the above and in the absence of any material announcement of the company, you [the company] are advised to furnish the reason and/or any material information in company’s knowledge which may have resulted in substantial increase in volume in terms of clause 5.6.3 of PSX Regulations and Section 97 of the Securities Act, 2015 immediately, through PUCARS for information of all market participants.
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Shanghai Power allowed extension for public announcement offer to acquire KE shares
KARACHI: Securities and Exchange Commission of Pakistan (SECP) has allowed 90 days extension to Shanghai Power Company to make public announcement of offer to acquire 66.40 percent ordinary shares of K-Electric Limited.
According to a communication to Pakistan Stock Exchange (PSX) on Tuesday related to extension in timeline for public announcement offer to acquire up to 4,639,825,784 ordinary shares of K-Electric Limited by Shanghai Electric Power Company Limited.
Arif Habib Limited in the letter said with reference to the public announcement of intention published on June 30, 2020 to acquire 66.40 percent ordinary shares of K-Electric Limited by Shanghai Power Company Limited under the provision of regulation 7(1) of the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017
The SECP in its letter said that the authority had granted the extension of ninety days to make public announcement of offer by Arif Habib Limited, which now may be made till March 27, 2021.
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K-Electric experiences cyber-attack
K-Electric Limited, the primary power utility provider for Karachi, faced a cyber-attack attempt earlier this week, resulting in the disruption of a few services. The company disclosed this incident in a statement released on Thursday, emphasizing that critical customer services remain unaffected.
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K-Electric declares 48 percent decline in profit after tax payment of Rs2.02 billion
K-Electric, the primary electric power supplier for Karachi, reported a significant reduction in net profits due to an increased tax burden during the first half of the fiscal year 2019/2020.
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