K-Electric Announces Financial Results for FY2016: Reports 15.6% Growth in Profit

K-Electric Announces Financial Results for FY2016: Reports 15.6% Growth in Profit

Karachi, August 09, 2017: The Board of Directors of K-Electric Limited convened on Wednesday at KE headquarters, to review the Company’s performance for the year ended 30 June 2016.

In its financial results issued to the PSX, KE declared profits of PKR 32.75 billion including deferred tax of Rs 7.95 billion during the period as compared to PKR 28.32 billion during the same period of FY 2015. The company’s earnings per share (EPS) also increased to 1.19 rupees per share as compared to 1.03 rupees.

The main reason for efficiency improvement is due to the reduction in transmission and distribution losses, which decreased to 22.2% compared to 23.7% last year, showing a reduction of 1.5%. The reduction in T&D losses, 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 by 28.1%.

The Board in recognition of the continuing improvement plan by K Electric across all operations decided not to declare any dividend, and to reinvest the profit earned in the business. Capital expense of PKR 26 billion has been invested in generation, transmission and distribution during the reporting period. The board emphasized the need for significant investment in reducing the supply and demand gap by adding more generation and enhancing the transmission and distribution network. In this regard, cash generated will be invested back in the business, with no dividend to the shareholders.

The Board further observed that a favorable result of Company’s review petition on Multi-Year Tariff (MYT) determination 2017, pending with NEPRA is critical for sustaining the transformation, efficient operations and profitability of the Company.

According to Tayyab Tareen, CEO, K-Electric, “KE’s financial results have shown a sustained improvement over the years. KE’s transformation continues to be recognized as a success story of privatization and strengthens our position as a progressive power utility. The growth in EPS and EBITDA is yet another reflection of our strong performance, sustained investments in our systems and infrastructure to enhance fleet efficiency and services to our customers. We are optimistic that we will continue to build infrastructure for enhancing our ability to serve our customers.”

The power utility remains fully committed to its vision statement of ‘Energizing Karachi’ while serving over 25 million people of Karachi and its adjoining areas.