Karachi May 25 2023: K-Electric successfully issued multiple Rated, Privately Placed, Unsecured, Short-Term Sukuk Issues in aggregate of PKR 10,000 Million.
The Bank of Punjab acted as the Mandated Lead Advisor & Arranger and Issue / Investment Agent for the Sukuk Issues.
KE reported a net loss of PKR (16.3) billion during 1QFY23 (1QFY22: 2.9 billion). However, the decline in net profit of the Company was observed on the back of a significant increase in fuel prices, exponential finance cost, increase in significant rupee devaluation and increase in Tariff differential. Working Capital also remains a challenge because the delayed payments from the government resulted in enhanced borrowings ultimately curtailing profitability because of increased finance cost.
The Company is pursuing its 900 MW RLNG project on a fast-track basis in unit-I & II of 450 MW each. KE has witnessed the synchronization of 900MW RLNG - fired power project (BQPS-III). Both Units have achieved base load operations. The generation capacity of the Company will increase and being an efficient plant, electricity will be produced at a lower rate which would have a positive impact on the working capital of the Company.
K-Electric, a vertically-integrated power utility, has been in operations for more than a century. Total installed capacity of K-Electric is 2,817MW, having an arrangement under a power purchase agreement for 1,650+ MW. At the end-jun22, KES Power Limited (KESP) held 66.4% share in K-Electric, while Government of Pakistan owned 24.4%. KES Power has entered into a share purchase agreement with Shanghai Electric Power Company Limited (SEP) for sale of up to 66.4% shares of K-Electric. The transaction is in process and will close once customary closing conditions and requisite regulatory approvals are obtained. K-Electric has ten member board. Mr.Moonis Alvi, CEO is associated with the company since 2008. He is supported by an experienced team.
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