Islamabad: Kot Addu Power Company Limited (KAPCO) has announced significant progress in the renewal of its Power Purchase Agreement (PPA) following discussions with the National Task Force on Implementation of Structural Reforms in the Power Sector. The National Electric Power Regulatory Authority (NEPRA) has already sanctioned the inclusion of KAPCO's power plant in the Power Acquisition Plan for 2023-2027, ensuring its necessity in the system until 2027. It has been preliminarily agreed that the PPA for 500 MW and the Switchyard will be renewed for three years under a hybrid take-and-pay model. This arrangement will permit certain fixed costs and a minimum guaranteed return, contingent on the availability of the power plant, while additional equity returns will be tied to increased electricity production. Following the review period, the Government of Pakistan approved the plant's retention and instructed NEPRA, Central Power Purchasing Authority (Guarantee) Limited (CPPA-G), and the National Transmission a nd Dispatch Company Limited (NTDC) to complete all formal and regulatory processes for executing the PPA with KAPCO. The company has also submitted an Addendum to the Tariff Petition to NEPRA for the final tariff determination. KAPCO will seek necessary corporate approvals once the renewal terms are officially communicated.

According to the condensed interim statement of profit or loss for the periods ending December 31, 2024, KAPCO demonstrated robust financial performance. The company reported an operating profit of 1.19 billion rupees for the three-month period, a decrease from 2.67 billion rupees in the previous year. Over the six-month period, the operating profit stood at 2.46 billion rupees, declining from 5.93 billion rupees in the prior year. Profit before levy and income tax was recorded at 1.16 billion rupees for the three-month period, compared to 1.72 billion rupees in 2023. For the six-month period, this figure reached 2.23 billion rupees, down from 3.66 billion rupees the previous year. The company reported a profit for the period of 782.53 million rupees for three months, compared to 1.26 billion rupees in 2023, and 1.94 billion rupees for six months, down from 2.44 billion rupees in the previous year.

Earnings per share were recorded at 0.89 rupees for the three months ending December 31, 2024, and 2.21 rupees for the six-month period. These figures compare to 1.43 rupees and 2.77 rupees, respectively, for the corresponding periods in 2023. According to information available from the Pakistan Stock Exchange (PSX), these developments align with KAPCO's strategic objectives and operational adjustments in light of regulatory and market conditions.

KAPCO remains a key player in the designated market category of power generation, managing critical infrastructural assets and adapting to evolving governmental and regulatory frameworks to sustain its operations and financial performance.