Karachi: Sitara Energy Limited has reported a significant turnaround in its financial performance for the fiscal year 2024, achieving a profit before tax of Rs 68.96 million, compared to a loss of Rs 100.85 million in the previous year. This improvement comes despite a reduction in sales revenue and persistent operational challenges, as revealed during the company's Corporate Briefing Session 2024.
The company's sales revenue declined to Rs 916.06 million in fiscal year 2024 from Rs 1,067.69 million in fiscal year 2023, representing a variance of Rs 151.63 million. The cost of generation also decreased to Rs 908.79 million from Rs 1,018.86 million, resulting in a gross profit of Rs 7.27 million, down from Rs 48.82 million the previous year. However, Sitara Energy Limited saw a substantial increase in other income, which rose to Rs 302.70 million from Rs 46.33 million, helping offset higher operating and finance costs.
According to information available from the Pakistan Stock Exchange (PSX), the company's profit after tax for the year stood at Rs 41.99 million, a significant recovery from the previous year's loss of Rs 103.28 million. The profit per share was recorded at Rs 2.20, compared to a loss per share of Rs 5.41 in the prior year.
Sitara Energy Limited generated 23,314,870 kWh of electricity in fiscal year 2024, a decrease from 33,104,400 kWh in the prior year. The company attributed part of its operational challenges to the unpredictability of prices for residual fuel oil (RFO) and re-gasified liquefied natural gas (RLNG), amid depleting natural gas resources.
Looking ahead, the management emphasized the importance of viable fuel prices and competitive tariffs for bulk power consumers (BPCs) to sustain profitability in the financial year 2024-25. Negotiations are underway with Standard Chartered Bank to restructure credit facilities, potentially reducing finance costs. The company is also investing in solar power plants to reduce generation costs and improve tariff competitiveness, contingent on a favorable regulatory framework.