Karachi: Engro Powergen Qadirpur Limited (EPQL) reported a steady performance for the nine months ending on September 30, 2024, with the plant achieving a 100% billable availability factor. The plant dispatched a Net Electrical Output (NEO) of 649 GWh to the national grid, operating at a load factor of 46%, down from 50% in the same period last year. The decline was primarily due to reduced offtake by the Power Purchaser. EPQL currently holds the 11th position in the economic dispatch merit order.
According to information available from the Pakistan Stock Exchange (PSX), the company’s sales revenue for the nine-month period was PKR 10,409 million, a slight decrease from PKR 10,901 million in the same period of the previous year, mainly due to reduced dispatch. Gross profit stood at PKR 2,499 million, compared to PKR 2,585 million last year. However, EPQL recorded an increased net profit of PKR 2,875 million, up from PKR 2,442 million in 2023, largely driven by higher net finance income resulting from improved recoveries from the government. The earnings per share (EPS) rose to PKR 8.88 from PKR 7.54 in the corresponding period last year.
The company announced a second interim dividend of PKR 2.50 per share, complementing the earlier interim cash dividend of PKR 3.50 per share.
Looking forward, EPQL is working to mitigate the impact of declining gas production from the Qadirpur field by collaborating with regulators and stakeholders to establish an alternative fuel source. The company has secured a supply of 8–13 mmscfd of low BTU gas from the Badar gas field, operated by Petroleum Exploration Limited (PEL). NEPRA approved modifications in EPQL’s generation license in February 2024, following the announcement of the fuel cost component for the PEL gas supply. Testing of the gas supply system has been completed, and EPQL successfully signed a Gas Sale and Purchase Agreement (GSPA) with PEL in August 2024. The company is now focused on obtaining further regulatory approvals and making necessary amendments to key agreements. Additionally, EPQL is exploring other local fuel options.
Despite expected reductions in national power demand due to economic challenges and rising electricity tariffs, EPQL remains optimistic about maintaining a steady dispatch level due to its cost-effective electricity generation and high merit ranking on the dispatch order.