Engro Powergen Qadirpur Limited (PSX: EPQL), a subsidiary of Engro Energy Limited, formerly known as Engro Powergen Limited (EPL), announced its recent financial result, which seems to continue is stable performance.

In 2018, the company, which is a combined cycle power plant with 1+1+1 configuration including one gas turbine, one heat recovery system generator (HRSG), and one steam turbine and uses permeate gas as its primary fuel source with HSD as backup fuel to produce electricity, announced a steady increase in profits. On the other hand, its revenues remained more or less stable on a year-on-year basis. One issue that the company faced in CY18 was the supply disruptions on account of gas supplier’s compressor issues that resulted in lower load factors for the company.

In 1QFY19, EPQL’s revenues saw a 16 percent year-on-year growth, which was primarily due to dollar-indexed capacity purchase price component. On the other hand, it is expected that the utilisation rates fell in the quarter due to lower output. But more than proportionate increase in cost of sales resulted in lower gross margins for the power company. However, what supported the bottom-line in 1QCY19 were lower administrative expenses because of cost curtailment and no significant increase in finance cost. The company’s earnings increased by a little oer6 percent, year-on-year, but net margins slipped.

The issue of overdue from NTDC remains for the IPP. As on December 31, 2018, these receivables stood at Rs6,133 million, up by 43 percent on a year-on-year basis. The company’s payables to SNGPL stood at Rs3,605 million. The company has a GSA with SNGPL for the supply of permeate gas from the Qadirpur gas field. However, the firm is now facing gas curtailment from Qadirpur gas field and has made its plant available on mixed mode from September 7, 2018 onwards, working on finding a long term alternate fuel option.