Kot Addu Power Company (KAPCO) announced its financial year 2018 results for the fourth quarter (4QFY18), today.
The company posted a profit after tax of Rs4,014 million (EPS: Rs4.56) in 4QFY18, up by 49 per cent year-on-year (YoY) compared to Rs2,687 million (EPS: Rs3.05) in the same period last year.
The increase in earnings is mainly due to a 230 per cent YoY rise in other income which is mainly due to the realisation of tariff true up. This takes financial year 2018’s earnings to Rs10,617 million (EPS: Rs12.06) higher by 12 per cent YoY. Along with the result, the company also announced a cash dividend of Rs4.80/share in addition to Rs4.35/share already paid.
The company recorded net sales of Rs30,310 million during quarter four of the financial year 2018, up by 10 per cent YoY. The YoY rise is attributed to higher LNG and FO prices (+15.4 per cent YoY), however, the dispatches have declined by 22.8 per cent YoY to 1,956 GWh (Load Factor: 68 per cent).
On a quarter-on-quarter (QoQ) basis, topline witnessed an increase of 40 per cent due to an increase (+15.4 per cent QoQ) in dispatches.
In FY18 a similar trend was witnessed with sales up by 12 per cent YoY to Rs91,916 million, again primarily due to higher FO prices (+17.9 per cent YoY), however, dispatches declined by 5.3 per cent 5,183 GWh (Load Factor: 59.9 per cent).
During 4QFY18, gross margins witnessed a decline of 476bps YoY to 11.7 per cent. The decline in margins is witnessed due to higher O&M expense, according to a report by AHL Research.
Other income jumped by 230 per cent YoY due the to the realisation of tariff true up and rise in overdue receivables (up by 25 per cent YoY, Rs90.5 billion as of March 2018).
