Engro Powergen Qadirpur Limited (PSX: EPQL) released its financial result for the first half of CY17 with a significant improvement in the earnings. The company also announced an interim cash dividend of Rs1.75 along with the financial performance. This improvement in financial performance comes as a positive sign for CY17 after a weak CY16 annual performance - that showed a decline in the firm’s bottom line. 
The key factor that hindered EPQL’s top line in 2016 was the decrease in load factor due to NTDC’s auto transformer issue which caught fire and went out of operation during the start of 2016. However, the first half of FY17 witnessed an increase in revenues by 30 percent year-on-year. Since the operations were resumed after the repair work, EPQL’s load factor is expected to have risen substantially in 1HCY17 versus 1HCY16. The firm has a load factor of 98 percent in 1QCY17 compared to only 21 percent in 1QCY16.
EPQL saw an increase in administrative and other expenses, whereas the finance cost was seen to come down by 18 percent, year-on-year. This coupled with increase in other income supported the bottom line as well.
The firm’s earnings were up by 24 percent, year-on-year. EPQL also enjoys a unique, inherent position in the supply of gas to the firm. Though the power company has a gas supply agreement GSA with SNGPL for the supply of 75mmcfd permeate gas from the Qadirpur gas field, the plant is based on commingle fuel i.e. it can operate on both gas on diesel.
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