K-Electric Limited has finally announced its financial results for the year that ended 30 June, 2017.
After years of delays, K-Electric Limited finally held a meeting on July 4th, 2019 to announce the results.
Along with 2017 results, the company also released the financial results for the quarters that ended September 30, 2016, December 31, 2016, and March 31, 2017.
The delay in filing of financial statements was caused due to “an unprecedented delay in notification of tariff, which was beyond its control and the board of directors”, claimed the power utility company.
K-Electric, in its various announcements, informed the SECP, PSX, and shareholders of the company that due to non-availability of valid tariff for the year starting July 2016 the company was unable to prepare the financial results.
Fiscal Year 2016-2017
In its financial results issued to the PSX, KE declared profits of Rs 10.4 billion as compared to Rs 31.8 billion during the same period of FY 2016, down by 67.26% .
A decline in profits was seen mainly due to a significant reduction in tariff level along with a change in tariff structure under the new Multi-Year Tariff (MYT) for the control period July 01, 2016 to June 30, 2023.
Overall sales of the company were Rs. 183 billion as compared to Rs. 188 billion in the previous year. The cost of sales of the company grew by 10% which dragged down the gross profit to Rs. 39.52 billion, down by 30.84%.
Earnings per share (EPS) were reduced to 0.38 rupees per share in FY17 from 1.15 rupees per share in FY16.
A major concern for KE, as with other power sector companies, remains the prevailing circular debt situation affecting the sustainability of the sector.
As of June 2019, the outstanding receivables of KE have ballooned to PKR 177 billion on account of outstanding payments from various federal and provincial public sector entities and are nearly two times its payables which total around PKR 99 billion. Other income of the company was up by 41% to Rs. 9.39 billion.
However, KE’s balance sheet remains healthy, with total assets amounting to PKR 396 billion in FY 17 as compared to PKR 378 billion in FY 16.
The company availed tax credit of Rs. 1.7 billion during FY17 compared to Rs. 6.9 billion in FY16 as the company is availing benefits of its previous year losses.
First Nine Months FY 2017
The company booked a profit of Rs. 6.6 billion for the nine months that ended on March 31st, 2017 as compared with a profit of Rs. 22.10 billion in the same period last year which is massively down by 70.07%.
The company posted sales of Rs. 131.5 billion as compared with Rs. 132 billion in the previous year.
However, the biggest relief came in the form of a reduction in tax expense by a whopping 92%.
The Earnings per share of the company for the aforesaid period were stated at Rs. 0.24, as compared to Rs 0.8 in the corresponding period last year.
Investment Plan
KE is looking to invest up to $3 billion over the next few years. Between 2009 and 2017, it has invested over USD 1.7 billion across the energy value chain resulting in addition to over 1,057 MW of efficient power generation capacity
At the time of filing this report, KEL’s shares at the bourse were trading at Rs. 4.19, down by Rs. 0.10 or -2.33% with a turnover of 445,000 shares on Friday.
