Lahore: Mughal Energy Limited has released its financial results for the six-month period ending December 31, 2024. In a meeting held on February 11, 2025, the company's Board of Directors reviewed and approved the condensed interim financial statements. Despite facing a challenging financial landscape, the company is strategically expanding its capabilities with the installation of a 36.50 MW captive hybrid power plant.
The financial report indicates that Mughal Energy Limited did not declare any cash dividends, bonus shares, or right shares for the reported period. The company is currently focused on the completion of its new power plant project, with civil works already finalized. The commissioning process is scheduled to begin after the month of Ramzan, with the commercial operation date (CoD) anticipated in the last quarter of the fiscal year 2025.
According to information available from the Pakistan Stock Exchange (PSX), the company reported total assets of 5.46 billion rupees as of December 31, 2024, marking an increase from 5.14 billion rupees on June 30, 2024. The increase in assets is attributed to the ongoing investment in property, plant, and equipment, which rose from 4.46 billion rupees to 4.92 billion rupees over the same period.
The financial performance for the six-month period resulted in a net loss of 7.18 million rupees, with a loss per share of 0.04 rupees. Administrative expenses totaled 8.95 million rupees, while other income contributed 1.93 million rupees, slightly offsetting the financial loss. The company's current liabilities increased to 1.61 billion rupees, primarily due to a rise in short-term loans from directors and trade payables.
Mughal Energy Limited's cash flows from operating activities were negative, amounting to 84.31 million rupees, largely driven by working capital adjustments and tax payments. The company also reported significant cash outflows of 334.52 million rupees for investing activities, reflecting its commitment to the new power plant project.
Despite the financial losses, the company generated positive cash flows from financing activities, totaling 232.12 million rupees, supported by proceeds from long-term financing and short-term loans from directors. This strategic financial maneuvering has enabled Mughal Energy Limited to maintain a stable capital structure while pursuing growth opportunities in the energy sector.
As the company anticipates the operational commencement of its new power plant, it remains optimistic about achieving improved financial performance in the coming quarters. The focus on enhancing energy capacity aligns with the company's long-term objectives to strengthen its market position within the energy industry.