Karachi: Nishat Chunian Power Limited has announced its financial outcomes for the quarter ending September 30, 2024. According to information available from the Pakistan Stock Exchange (PSX), the company recorded a turnover of PKR 2.08 billion, a significant decrease from PKR 6.80 billion in the same period of 2023. Despite the drop in turnover, profit after tax rose to PKR 1.47 billion from PKR 1.39 billion year-over-year, with earnings per share increasing to PKR 3.99 from PKR 3.77.

During this quarter, the plant operated at a reduced capacity factor of 1.86%, a sharp decline from 33.42% in 2023. However, its availability factor remained high at 99.89%, up from 81.81% the previous year. Power dispatch to the Power Purchaser significantly dropped to 8054.27 MWH from 144,439 MWH in 2023.

The company highlighted the ongoing issue of circular debt, which continues to pose significant challenges for the sector. As of the end of September 2024, total receivables from the Power Purchaser stood at PKR 12.89 billion, a decrease from PKR 15.72 billion in 2023, with PKR 11.56 billion overdue, an increase from PKR 8.81 billion.

In a significant corporate development, the company referred to the Master Agreement of February 11, 2021, and the Arbitration Submission Agreement signed on June 15, 2022. These agreements address the resolution of alleged excess profits under the 2002 Power Policy through arbitration. The Arbitration Tribunal, which includes a former President of the UK Supreme Court, has initiated proceedings with adopted Terms of Reference, suggesting potential favorable outcomes for the company.

The Directors expressed their gratitude to shareholders for their continued trust and acknowledged the dedication of the company's employees, whose efforts are essential for future successes.