In its bid to reduce reliance on imported fuel, Lucky Cement, one of Pakistan’s largest cement manufacturers, announced the installation of an additional three renewable projects that would have a generation capacity of 37.6MW.
The company announced the development in its notice to the Pakistan Stock Exchange (PSX) on Monday.
“The Board of Directors (BoD) of the company has approved to undertake a 28.8 MW captive wind power project at its Karachi plant,” read the notice.
The project is expected to be completed by the end of FY 2024, said the company.
“Moreover, the BoD has also approved to undertake solar power projects, of 6.3 MW and 2.5 MW at the company’s Karachi and Pezu plants, respectively, which are expected to be completed by Q3 of FY2024,” it said.
Lucky informed these solar power projects are in addition to the 25 MW and 34 MW solar power projects commissioned recently at the Karachi and Pezu plants, respectively.
The company said that the estimated cost of the upcoming projects is Rs11 billion.
“Keeping up with our commitment towards sustainable environment practices, the contribution of renewable energy in the power mix will significantly increase after the completion of the above-mentioned projects.
“The company’s initiatives for investment in renewable energy projects will play a key role in cost savings as well as reduction of country’s reliance on imported fuel,” it said.
The EPS (earnings per share) of the company, amid savings, is expected to improve by Rs2 and Rs0.46 owing to wind power plant and solar power plant, respectively, said Arif Habib Limited (AHL), a brokerage house, in a note after the notice.
AHL added that Lucky could expectedly save up to Rs1.261 billion on an annual basis.
Moreover, Lucky’s BoD has authorised the company to evaluate participation in the equity of Lucky Core Ventures (“LCV”), along with other companies of the Yunus Brothers Group.
“LCV is a wholly-owned subsidiary of Lucky Core Industries Limited, a subsidiary of the company, and has been set up to act as a holding company in respect of future growth projects of LCI,” read the notice.
Back in May, LCV published a Public Announcement of Intention (PAI) to acquire approximately 75.01% shareholding of Lotte Chemical Pakistan Limited.
“The company’s participation in the equity of LCV is subject to completion of satisfactory due diligence and obtaining applicable regulatory and Board approvals.”
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