Years of 26

Excellence

KAPCO - 26 Years of Excellence

&

Way Forward!

October 26, 2023

KAPCO - A Symbol of Successful Public Private Partnership

KAPCO - Overview

➢ Construction By WAPDA - 5 Phases (1985-1996)

Current shareholding structure

➢ Company

April 1996 (to acquire Power complex from WAPDA)

Incorporation

June 1996 - Thru International Competitive Bidding

➢ Privatisation - 36% shares sold to National Power UK with

management control

40.25%

WAPDA

49.27%

Gen Public

(over 65,000 shareholders)

5.48%

KAPCO BESOS

Trust

5.00%

United Bank

Ltd

➢ Listing

2005 - Listed on Stock Exchanges

➢ PPA

25 Years till Jun 2021

(extended till Oct-2022 thru settlement)

➢ Generation

Initial expiry - 21-Sep-21

License

Extended till 21-Sep-24

➢ Capacity

1600 MW (ADC 1345MW)

➢ Fuel

Only Multi Fuel Plant - LSFO, Gas/RLNG, HSD

➢ Technology

CCGT - 10 Gas Turbines, 5 Steam Turbines

ISO 19001 - 2015 Quality Management System

➢ Certifications

ISO 14001 - 2015 Environment Management

ISO 45001 - 2018 Occupational Health & Safety

Management

KAPCO

  • KAPCO is the shining example of Privatisation - Public Private Partnership.
  • KAPCO is being managed and operated according to best international utility practices since its privatization in 1996.
  • Total dividend payment since 1996: Rs. 154.3 billion (Rs. 175.3/share). Since listing in 2005 Rs. 118.7 billion(Rs. 134.9/share)
  • KAPCO paid around Rs. 71 billionof tax to Govt of Pakistan

KAPCO - Techno Commercial Strengths

KAPCO - Techno Commercial & Strategic Importance

Technical

  • Included in approved IGCEP 2022-31 based on technical strengths
  • Optimum size machines and lesser ramp-up Quick Start, can support peaking demand
  • 10 Gas Turbines with HRSG, 5 Steam Turbines
  • 6 units are connected at 132 KV system
  • 9 Units connected at 220 KV system
  • 4 auto transformers with 500 MVA Auto Transformer capacity
  • Multi-Fuel /Fuel Flexibility
  • KAPCO Complex (EB-1) highest efficiency among furnace oil based power plants in the country

Useful/ Technical Life

  • An independent study has been conducted by M/S Ramboll UK on the remaining useful of major equipment of KAPCO Plant
  • Based on the study, assessed plant life is more than 10 years

Switchyard Facility

  • KAPCO has 132KV~220KV switchyard (500MVA) which is being used by NPCC without any contractual arrangement
  • KAPCO Power House is primary sourcefor feeding to remote areas of Layyah, Chowk Azam, Rang Pur, Kot Sultan, Noor Ahmad Wali, Shadan Lund, Tounsa Sharif etc (15 Grid Stations owned by MEPCO, 1 Consumer Grid Station, 1 FESCO Grid Station)
  • Low Voltage problem may also aggravate incase of feeding from alternate source especially in summer peak

Energy Security

  • KAPCO has blackstart facility to support in case of countrywide blackout
  • Multi-Fuel/Fuel Flexibility [Gas / FO / HSD]
  • KAPCO has the largest oil storage capacity by any IPP (LSFO 156KT, HSD 40ML). 6 Treatment Plants
  • KAPCO is key national & strategic asset and can play its role in the fuel/ energy security of the Country
  • KAPCO has dedicated pipelines for Fuel Supply and Gas/RLNG supply (300MMCFD)

KAPCO - Financial Performance 2022-23

Balance Sheet - Breakup June 30, 2023

Non Current Assets

Non Current Liabilities

Current Liabilities

3.0

2.9

32.8

Equity 66.1

Current Assets

98.9

Rs in Billion

Current Assets

Description

2023

2022

PIB/Sukuk

50.1

54.1

Trade Receivables

26.6

62.2

Fuel Inventory & Stores

15.5

9.9

Advances, deposits, Tax

4.8

6.6

Cash & Bank

1.9

1.0

98.9

133.8

Current Liabilities

Description

2023

2022

Bank Finances

22.1

37.4

Trade & other payables

9.6

21.5

Dividend

1.1

1.0

Contract liability

-

4.6

Tax, Others

-

1.9

32.8

66.3

Financial Performance: 2023 vs. 2022

Rs in Million

2022-23

2021-22

Generation (GWh)

588

4,980

Revenue

25,435

136,600

Cost of Sales

(26,004)

(128,068)

Gross Profit

(569)

8,532

Administrative Expenses

(843)

(977)

Other Expenses

(1,360)

(277)

Other Income

15,844

12,619

Operating Profit

13,072

19,897

Finance Cost

(6,253)

(4,373)

Profit Before Tax

6,819

15,524

Tax

(2,861)

(5,630)

Net Profit

3,959

9,894

EPS (Rs / Share)

4.50

11.24

Main Reasons for Variance in net profit:

  • No revenue post Oct-22 due to PPA expiry;
  • Fixed Cost (including salaries) post PPA period;
  • FV loss on PIBs and Sukuk - Rs. 1.0 billion
  • Insurance, WPPF, WWF and additional income tax charged to P&L. Previously they were pass-through
  • Tax rate increased from 33% to 39% (previous PPA rate 36%)

Way Forward!

Tariff Update & Diversification Plans

Tariff Update

  • Generation license:
    Generation License extended till 21-Sep-2024. If CTBCM is implemented then there will be no need to extension of generation license, otherwise, extension will be applied before expiry,
  • IGCEP (2022-31)
    IGCEP (2022-31) was approved by NEPRA in Feb-2023 and included minimum 500MW capacity from KAPCO till 2026 due to system constraints.
  • Tariff Submission & Provisional Tariff
    Revised Tariff was submitted in Mar-2023 and NEPRA issued provisional tariff on 4-Aug-2023 on take- and-pay' basis for 500MW in line with IGCEP.
  • Review Petition for Provisional Tariff
    Being aggrieved with the provisional tariff, the Company submitted a Review Petition before NEPRA to record its reservations.
  • Public Hearing for Final Tariff
    NEPRA conducted public hearing for Final Tariff on 3-Oct-2023 where KAPCO management presented its case adequately by highlighting the significant of KAPCO Plant (including its switchyard and blackstart facility). Final Tariff determination is expected to be issued soon
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Kot Addu Power Company Limited published this content on 25 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 October 2023 06:14:36 UTC.