Karachi: Saif Power Limited has reported a substantial turnaround in its financial performance for the nine-month period ending September 30, 2024, with a net profit of Rs. 1,054 million, a dramatic shift from the net loss of Rs. 25 million recorded in the same period last year.
In a detailed directors' review, Saif Power Limited outlined the key aspects of its financial and operational performance, highlighting a net profit of Rs. 1,054 million compared to a net loss the previous year. The earning per share stood at Rs. 2.73, reversing from a loss per share of Rs. 0.07 in 2023. The turnover, however, decreased significantly to Rs. 8,146 million from Rs. 17,602 million reported last year, with the dispatch level also dropping to 9.88% from 31.01%.
According to information available from the Pakistan Stock Exchange (PSX), the company’s financial recovery can be attributed to several resolved disputes and operational improvements. Among the resolved issues, Saif Power won a legal battle against Sui Northern Gas Pipelines Limited (SNGPL) over a disputed amount of Rs. 270.66 million, though this decision is currently challenged in the Supreme Court. Additionally, mutual agreements were reached with the Central Power Purchasing Agency (Guarantee) Limited regarding the Heat Rate Correction Factor and Period Weighing Factors, adding Rs. 344 million to Saif Power’s accounts.
Key operational data reveals that while the company's dispatch levels decreased, the available capacity was slightly higher, at 1,344 GWHs compared to 1,337 GWHs in the previous year. Saif Power's consolidated financial statements further show a net profit increase to Rs. 1,129 million from Rs. 194 million in 2023, with net worth growing to Rs. 12,730 million from Rs. 12,664 million at the end of last year.
The company also highlighted its ongoing financial strategies and investments, including the completion of the asset sale of Saif Cement Limited, resulting in significant fund transfers to Saif Power’s accounts. Additionally, loans to associated companies like Saif Textile Mills Limited have increased, with long-term loans nearing Rs. 1 billion and running finance facilities reaching Rs. 1,480 million.
The directors expressed gratitude towards their stakeholders, including the Central Power Purchasing Agency and the National Transmission and Despatch Company, for their cooperation and support during this period. They also acknowledged the hard work and dedication of their employees, whose efforts have been crucial in navigating the company through its financial recovery.