Saif Power Ltd (SPWL) began calendar-year 2025 with what at first glance looks like a respectable rebound. First-quarter net turnover rose 40% year-on-year to Rs1.49 billion, yet the surge in fuel and maintenance costs meant cost of sales almost doubled (+99%) and the gross margin collapsed from 43% to 19%. After finance costs, the company eked out only Rs36 million in net profit – just 2.4% of revenue – even though that figure is 16-times the Rs2 million booked a year earlier.
Look further back and the picture is no prettier. Full-year 2024 revenue halved to Rs9.67 billion from Rs19.04 billion in 2023 as plant utilisation sank to an abysmal 8.23%, despite an impressive 94.2% availability factor. In other words, the 225 MW combined-cycle plant was mechanically ready but seldom dispatched by the grid operator.
The perpetual curse of Pakistan’s independent power producers – ballooning receivables from the Central Power Purchasing Agency (CPPA-G) – is back with a vengeance. Although a landmark settlement in early 2025 released Rs5.2 billion of overdue invoices, receivables had already rebuilt to between Rs2 billion and Rs2.5 billion by May . As of 31 December 2024, the figure still stood at Rs8.2 billion, even after management voluntarily waived Rs1.36 billion in late-payment interest to secure the deal. The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
