CORPORATE

BRIEFING SESSION

2023

BRIEF HISTORY OF NCPL

2007

  • INCORPORATION
  • TARIFF DETERMINED BY NEPRA
  • EPC, IA & PPA EXECUTED

STARTED IN-HOUSE

- FINANCIAL

OPERATIONS AND

MAINTENANCE

CLOSING

GUARANTEE BY

2009

GOP

LISTED ON

STOCK

2015

EXCHANGE

FIRST YEAR OF

2020

COMPLETED

PROFITABLE

STARTED

OPERATIONS

TENURE OF

DEBT

COMMERCIAL

COMPONENT

OPERATIONS

IN CAPACITY

TARIFF

2021

SIGNED MASTER & PPA AMENDMENT AGREEMENT

2011

NCPL Technology

Gross Capacity

200.00 MW

Net Capacity

195.722 MW

Number of Wartsila Finland 18V46 Engines

11

Number of PB Steam Turbine

1

Gross Capacity - Engine

16.9 MW

Gross Capacity - Steam Turbine

14.0 MW

Engine Type

W18V46C

Generator Type

Converteam/ABB

Rated Voltage - Generator

15kV

Primary Fuel

Residual Furnace Oil (RFO)

Back Up Fuel

High Speed Diesel

Financial Highlights

Financials

Description

2023

2022

2021

2020

2019

2018

PKR in Millions

Revenue

25,416

11,643

13,023

15,021

16,594

18,221

EBITDA

5,592

4,334

4,301

7,379

5,941

5,522

Net Profit

3,956

2,503

2,509

4,606

3,417

3,406

Earnings

Description

2023

2022

2021

2020

2019

2018

EPS (PKR/Share)

10.77

6.82

6.83

12.54

9.30

9.27

Cash Dividend (PKR/Share)

-

10

-

-

2.00

1.00

Dividend Payout

-

147%

-

-

22%

11%

Dividend Yield

-

67.37%

-

-

8.89%

2.97%

Year at a Glance

Financials

Description

20232022

PKR in Millions

Receivable from Power Purchaser

13,747

13,718

Short term Borrowings

975

10,852

Inventory

809

2,254

Operations

Description

2023

2022

Electricity units dispatched

386 GWH

882 GWH

Capacity Factor

22.52%

51.47%

Plant Availability

91.40%

91.54%

Number of Employees

149

153

Tariff Comparison

Capacity Tariff Before And After Debt Component

3.5

3

PKR/KwH

2.5

2

1.5

1

0.5

0

Tariff : 3.268

1.7436

0.1990

0.7957

0.1068

0.4234

Tariff : 2.255

0 0.3207

0.8252

0.2641

0.7979

2019-2020

2022-2023

(with Debt Component)

(without Debt Component)

Fixed O&M

Insurance

ROE & ROEDC

Working Capital Cost Debt Component

Receivables - June 2023 v June 2022

70.00%

8.43 bln

60.00%

50.00%

40.00%

4.3 bln

Jun-23 - 12.84 bln

3.9 bln

30.00%

Jun-22 - 13.45 bln

2.84 bln

2.7 bln

20.00%

2.16 bln

10.00%

0.85 bln

1.01 bln

0.00%

0.0%

0.0%

Not due

0-30

31-90

91-180

181-365

1 to 2 years

Above 2 years

*Includes billed receivables only.

Dividend History NCPL

  • Since its first year of profitable operations in 2011, NCPL has distributed dividends equivalent to 487.5% (Rs. 17.9 bln) of the total share capital over the span of 12 years, which roughly translates to an average yearly dividend pay out of 40% which is a healthy pay out to the shareholders.
  • In the year ended June 30, 2022, 100% dividend was paid by the company.
  • Circular debt in Pakistan, with a particular focus on Independent Power Producers (IPPs), is a persistent and complex issue that has plagued the country's energy sector for many years. As on 20-Oct 2023, outstanding receivables amounted to Rs. 14.51 bln, which is an alarming figure and increasing every passing day.
  • Nonetheless, in the year 2023, the economic downturn and recession had a profound impact. Escalating interest rate introduced considerable uncertainty regarding the overall future prospects, particularly within the power sector. The interest rates during the year 2023 are at all time high, with the interest rates reaching up to 26%.
  • It is a policy of the Board of Directors to avoid highly expensive financing up to the maximum extent, pursuant to that policy the announcement of dividends for the year 2023 was deferred for a shorter period of time.
  • Further, keeping in view the above-stated factors, the economic situation and the negative impact it had on the ability of the power purchaser to timely pay off the debt, the directors of the company in order to protect the interest of the shareholders decided not to announce dividend for the year 2023.
  • Looking further, keeping close watch on the economic conditions, changes observed and the various initiatives by the government to control transmission losses and improve recoverability, our directors are of the view that the economic conditions of the country are on the track towards improvement, and they hope to continue their past practice of healthy dividend payouts.

RFO Generation in the country

40,000

50.00%

37,108

47.08%

45.00%

35,000

40.00%

30,000

28,159

35.00%

25,000

30.60%

30.00%

20,000

25.00%

17,092

15,000

13,826

20.00%

18.36%

15.47%

10,596

15.00%

10,000

7,909

11.96%

10.00%

9.79%

5,000

5.00%

-

0.00%

2016-17

2017-18

2018-19

2019-20

2020-21

2021-22

RFO Generation (GWH)

Percentage of RFO in total thermal generation

Source: NEPRA's State of Industry Report

*State of industry report for 2023 is yet to be published by NEPRA.

Circular Debt - Transmission, Distribution and Recovery Losses

2021-2022

2.62%

2020-2021

2.78%

2019-2020

2.76%

2018-2019

2.83%

2017-20182.43%

0.00%

17.13%

9.49%

17.95%

2.70%

18.86%

11.23%

17.61%

9.75%

18.32%

12.29%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

Transmission loss

Distribution Losses

Recovery Loss

Source: NEPRA's State of Industry Report

*State of industry report for 2023 is yet to be published by NEPRA.

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Nishat Chunian Power Ltd. published this content on 23 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 October 2023 10:29:40 UTC.