Karachi: Engro Powergen Qadirpur Limited (EPQL) has announced its unaudited financial results for the first quarter of 2025, showing a decrease in net profit compared to the same period last year. The company reported a net profit of PKR 385 million for the quarter ending March 31, 2025, down from PKR 585 million in the first quarter of 2024. This decline is attributed to the recent amendments in the company's Power Purchase Agreement (PPA) as a result of negotiations with the Government of Pakistan and the Power Purchaser.

The company's sales revenue for Q1 2025 was PKR 3,094 million, a slight increase from PKR 3,088 million in the same period last year. This growth is credited to a higher period weighing factor on capacity payments, partially offset by the amendments to the PPA. Gross profit recorded for the quarter was PKR 467 million, compared to PKR 457 million in Q1 2024. Earnings per share decreased to PKR 1.19 from PKR 1.81 in the previous year.

According to information available from the Pakistan Stock Exchange (PSX), EPQL maintained a billable availability factor of 100% and dispatched a total Net Electrical Output of 212 GWh to the national grid with a load factor of 46%, slightly improving from 45% in Q1 2024. Despite maintaining its 11th position in the economic dispatch merit order, the company continues to face challenges due to the amendments in its tariff model.

The Amendment Agreement, effective November 1, 2024, introduced a Hybrid Take and Pay model and included provisions for clearing receivables due to EPQL as of October 31, 2024. This led to a balloon payment received in March 2025. Additionally, EPQL has filed a tariff revision application with NEPRA in accordance with the new agreement terms.

Looking ahead, EPQL is addressing potential declines in production from the Qadirpur gas field by engaging with regulators and stakeholders to secure alternative fuel sources. The company has secured 8-13 mmscfd of low BTU gas from the Badar gas field operated by Petroleum Exploration Limited. After completing system testing and signing a Gas Sale and Purchase Agreement with Petroleum Exploration Limited in August 2024, EPQL is now seeking additional regulatory approvals to modify existing agreements for power generation using this new fuel source. The company is also exploring other fuel options to ensure consistent power generation capabilities.