Karachi: Sitara Energy Limited has reported a substantial decline in its financial performance for the fiscal year ending June 30, 2025, as the company grapples with high and unpredictable fuel prices, according to the company’s annual financial report dated December 24, 2025.
The company's sales revenue plummeted from Rs 916.06 million in fiscal year 2024 to Rs 176.07 million in fiscal year 2025, reflecting a very large or significant move of 81%. The cost of generation also decreased significantly from Rs 908.79 million to Rs 214.66 million, marking a very large or significant move of 76%. Consequently, Sitara Energy recorded a gross loss of Rs 38.59 million compared to a gross profit of Rs 7.27 million the previous year, which represents a very large or significant move of 631%.
Despite a 19% increase in other income, rising from Rs 302.70 million to Rs 360.66 million, the increase was not sufficient to offset the overall losses. Operating expenses were reduced by a moderate move of 7.40%, totaling Rs 68.35 million. However, other operating expenses surged by a very large or significant move of 594%, reaching Rs 27.37 million.
A notable reduction in the finance cost, which fell from Rs 163.24 million to Rs 53.92 million, was achieved largely due to the disposal of investment properties to repay rescheduled credit facilities. According to information available from the Pakistan Stock Exchange (PSX), this action reflects the company's efforts to manage its fiscal responsibilities under challenging market conditions.
Profit before income tax increased significantly by 147%, reaching Rs 170.28 million. After accounting for a provision for taxation of Rs 3.14 million, the company's profit for the year stood at Rs 167.14 million, up from Rs 41.99 million in fiscal year 2024, representing a very large or significant move of 298%. Earnings per share rose from Rs 2.20 to Rs 8.75.
The company faced reduced generation capacity, with total generation falling to 5,202,509 kWh in fiscal year 2025, down from 23,314,870 kWh in the previous year. This decline is attributed to high prices of Residual Fuel Oil (RFO) and Re-gasified Liquefied Natural Gas (RLNG), which, despite slight reductions, remained unviable for production and sales.
Sitara Energy’s management cited several challenges, including the inability to compete with electricity tariffs offered by Distribution Companies (DISCOs), leading Bulk Power Consumers (BPCs) to opt for subsidized electricity from competitors. The company looks to the future with strategies including potential investment in solar power, contingent upon favorable regulatory frameworks and government policies, as it seeks to stabilize operations and minimize losses.