Lahore: Kot Addu Power Company Limited (KAPCO) reported a substantial profit after tax of Rs. 4.314 billion for the financial year ending June 30, 2024, according to its latest financial disclosures. The earnings per share stood at Rs. 4.90, reflecting a robust performance despite operational challenges. The power generation company's profits were primarily driven by income from investments, totaling Rs. 9.319 billion in operating profit.

KAPCO's financial position remains strong with significant liquidity to meet operational needs and liabilities. The company announced a final cash dividend of Rs. 4.00 per share, bringing the total cash dividend for the year to Rs. 8.50 per share after accounting for an earlier interim dividend. This marks an 85% payout ratio, highlighting the company’s commitment to returning value to shareholders.

Despite the absence of a new Power Purchase Agreement (PPA) since the expiry of the previous agreement in October 2022, KAPCO maintained its operational readiness. According to information available from the Pakistan Stock Exchange (PSX), the company's strategic management has allowed it to preserve capital and sustain profitability through meticulous investment strategies.

The absence of a PPA has led KAPCO to place its power plant on preservation mode, ensuring readiness for electricity generation while optimizing operational costs. This strategic shift has not only secured the company's asset base but also stabilized its financial outcomes in a year of transition.

Management remains engaged with the National Electric Power Regulatory Authority (NEPRA) for approval of the final tariff, which is crucial for the renewal of the PPA and the long-term sustainability of the company. This engagement is part of KAPCO's broader strategy to navigate the regulatory landscape and secure its position in the competitive power market.