KARACHI
K-Electric (KE) held its 106th Annual General Meeting (AGM) for the FY 2016, chaired by Independent Director Khalid Rafi, in the presence of CEO Tayyab Tareen, CFO Moonis Alvi, Company Secretary Rizwan Dalia and other members of KE leadership.
On this occasion, the management of KE apprised the shareholders about the development of $ 1 billion 900 MW Bin Qasim Power Station III Project and the progress of $ 440 million TP-1000 (Transmission Enhancement Plan) project. KE has further intensified its drive against power theft and illegal abstraction.
“Installation of Aerial Bundled Cables (ABC), which is an innovative concept for power distribution guaranteeing both safety and higher system efficiencies, is also part of our vision to further enhance the reliability of power supply across KE’s network,” it was told.
The power utility declared profits of Rs 32.75 billion including deferred tax of Rs 7.95 billion during FY 2016 as compared to Rs 28.32 billion during the same period of FY 2015 – reporting a growth of 15.6 per cent. The company’s earnings per share (EPS) also increased to 1.19 rupees per share as compared to 1.03 rupees. Moreover, reduction in T&D losses, which decreased to 22.2 per cent compared to 23.7 per cent last year, showing a reduction of 1.5 per cent, together with the gains resulting from higher electricity units sent out (FY 2016: 16,545 GWh; FY 2015: 16,111 GWh), have led to an improvement in EBITDA of 28.1 per cent.
The management also shared the power utility’s robust business plan backed by an investment of over Rs 254 million in view of the growing power demands and to strengthen the city’s power infrastructure.
“In consideration of the power demand-supply gap of the megacity, there is a need to upgrade the power infrastructure through additional investment. However, it is not financially viable unless the review petition on MYT pending with NEPRA is decided with a view to undertaking the sustainability of KE’s future cash flows to undertake large-scale projects in a realistic manner,” KE management highlighted.
The shareholders were briefed about the power utility’s CSR initiatives which benefit around 3.9 million lives annually with initiatives like provision of free or subsidized electricity to key healthcare and welfare organisations.
It is pertinent to note that KE has to date not paid out any dividend and the profits declared in annual audited accounts have been re-invested into the business.
This, in turn, has benefited customers through improvement in supply and quality of service.
