KARACHI: Engro Powergen Qadirpur Limited (EPQL) reported a 34.2% year-on-year decline in net profit for the quarter ended March 31, 2025, largely due to a sharp drop in finance income, the company said in a filing to the Pakistan Stock Exchange (PSX) on Tuesday.
The company posted a profit of Rs384.6 million, compared to Rs584.6 million in the same period last year. Earnings per share (EPS) also fell to Rs1.19, from Rs1.81 in Q1 2024. Despite the profit decline, EPQL announced an interim cash dividend of Rs7.5 per share, equivalent to 75% of the face value.
Despite the drop in profit, the release of the company’s financials led to a sharp uptake in the demand of the company’s stock, driving it up to its highest ever value in history during the day’s trade, i.e., upwards of Rs 37.
EPQL, a subsidiary of Engro Energy Limited, operates a 217 MW power plant in Ghotki, Sindh, primarily based on permeate gas from Qadirpur gas field. The plant is part of Pakistan’s Independent Power Producer (IPP) framework and plays a role in providing reliable electricity to the national grid.
Revenue during the first quarter of 2025 remained virtually unchanged at Rs3.09 billion, up marginally from Rs3.08 billion last year. The cost of revenue also saw a slight decline of 0.19%, helping lift gross profit by 2.35% to Rs467.2 million.
Operationally, the company fared slightly better. Profit from operations rose by 2.4% to Rs358.8 million, while other income surged over 450% to Rs1.2 million.
However, the biggest drag came from a collapse in finance income, which fell by a staggering 89.1% to Rs26 million, compared to Rs237.6 million in the same quarter of 2024. This dramatic reduction largely offset gains in core operations.
Even though taxation expenses declined sharply by 93.8%, it wasn’t enough to prevent a significant drop in overall profitability. Profit before tax fell by 34.5% to Rs384.8 million.
EPQL’s results come at a time when the power sector is facing challenges such as declining gas availability, payment delays from government-run power purchasers, and rising interest rates, all of which impact IPP profitability.
The company’s performance will be closely watched in the coming quarters, especially as it navigates fuel supply constraints and evolving energy sector reforms. A large part of the company’s fate also depends on the proposed sale of Engro’s 68.8% stake in the company. The deal has already fallen through once when the Liberty Mills led consortium’s Public Announcement of Intention to acquire expired in November last year.
