KARACHI: Nishat Power Limited (PSX: NPL) swung to a consolidated net loss of Rs3.28 billion for the nine months ended March 31, 2025, compared to a profit of Rs3.85bn in the same period last year, primarily due to a one-off Rs5.59bn adjustment payable to the Central Power Purchasing Agency Guarantee Limited (CPPA-G) and a steep decline in revenue.
Despite the downturn, the Board of Directors declared an interim cash dividend of Rs2 per share, equivalent to 20% of the face value.
The company’s earnings per share (EPS) dropped to negative Rs8.93, versus a positive EPS of Rs10.48 in the corresponding period last year.
Revenue from contracts with customers nosedived by 67.6% year-on-year to Rs4.03bn, reflecting reduced dispatch and lower off-take under the power purchase agreement. Although cost of sales fell by 77.3% to Rs1.93bn—thanks to lower generation—the gross profit declined by 47% to Rs2.1bn.
Administrative expenses surged by 81.2% to Rs238m, while other operating income more than doubled to Rs554m, up from Rs236m last year. Still, these were not enough to counter the massive receivable adjustment related to CPPA-G.
Operating profit dropped 41% to Rs2.4bn, while finance costs saw a dramatic reduction of nearly 94% to Rs13.5m due to lower borrowings and interest rates. However, the Rs5.59bn adjustment related to CPPA-G overshadowed operational improvements, leading to a pre-tax loss of Rs3.19bn.
Following a taxation expense of Rs88.8m, the company’s bottom line settled at a net loss of Rs3.28bn.
NPL’s swing into losses underscores the severe impact of circular debt and payment reconciliation issues plaguing Pakistan’s power sector. The CPPA-G adjustment suggests a retrospective liability or revenue clawback, reflecting tightening oversight and settlement processes in government-backed contracts. While the company managed to declare a dividend—possibly to maintain investor confidence—persistent revenue instability and large receivable risks continue to cast a shadow over independent power producers. Investors and sector stakeholders will be watching how NPL addresses working capital pressures and engages with CPPA-G for future settlements.
