K-Electric declares profit of Rs32.75bn

KARACHI: K-Electric has declared profit of Rs. 32.75 billion during fiscal year 2016 at its 106th Annual General Meeting (AGM) at a local hotel on Tuesday.

The meeting was chaired by Khalid Rafi, Independent Director on KE Board, in the presence of Tayyab Tareen, CEO, Moonis Alvi, CFO, Rizwan Dalia, Company Secretary and other members of KE leadership.

It was pointed out that KE's performance has shown sustained improvement over the years. The power utility declared profits of Rs. 32.75 billion including deferred tax of Rs. 7.95 billion during the fiscal year 2016 (FY 2016) as compared to Rs. 28.32 billion during the same period of FY 2015 - reporting a growth of 15.6%.

The company's earnings per share (EPS) also increased to 1.19 rupees per share as compared to 1.03 rupees. Moreover, reduction in T&D losses, which decreased to 22.2% compared to 23.7% last year, showing a reduction of 1.5%, together with the gains resulting from higher electricity units sent out (FY 2016: 16,545 GWh; FY 2015: 16,111 GWh), have led to an improvement in EBITDA by 28.1%.

The management of KE apprised the shareholders about the development of USD one billion 900 MW Bin Qasim Power Station III project, and the progress of USD 440 million TP-1000 (Transmission Enhancement Plan) project.

KE has further intensified its drive against power theft and illegal abstraction. `Installation of Aerial Bundled Cables (ABC), which is an innovative concept for power distribution guaranteeing both safety and higher system efficiencies, is also part of our vision to further enhance the reliability of power supply across KE's network'.

The management also shared the power utility's robust business plan backed by an investment of over Rs 254 billion in view of the growing power demands and to strengthen the city's power infrastructure.

`In consideration of the power demand-supply gap of the mega city, there is a need to upgrade the power infrastructure through additional investment. However, it is not financially viable unless the review petition on MYT pending with NEPRA is decided with a view to undertake the sustainability of KE's future cash flows to undertake large scale projects in a realistic manner', KE management highlighted.

During the AGM, the shareholders approved KE's financial statements and endorsed the decision to reinvest the profit earned in the business in recognition of the continuing improvement plan by K-Electric across all operations.