Karachi: Engro Powergen Qadirpur Ltd (EPQL) reported a significant decrease in its net profit after tax, with a drop of 71% year-on-year to PkR460 million, or an earnings per share of PkR1.42, for the first half of the calendar year 2025. The decline was attributed to reduced operational capacity, changes in contractual agreements, and decreased financial income.
EPQL’s electrical output reached 363 gigawatt-hours, reflecting a load factor of 39%, down from 437 gigawatt-hours and a load factor of 46% in the same period last year. This decline follows the company’s shift to a hybrid “take and pay” model, following an amendment agreement signed in February 2025.
The agreement led to a bullet payment received in March 2025, which enabled EPQL to distribute dividends of PkR10 per share during the first half of the year. The company’s receivables stood at PkR2.7 billion by the end of the second quarter of 2025, a significant reduction from PkR10.5 billion in the same period last year, attributed to payments from the Central Power Purchasing Agency (Guarantee) Limited. Although collection rates have improved, they remain below 100%.
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EPQL improved its position in the National Transmission and Despatch Company’s merit order, moving up to ninth place from eleventh. A scheduled 20-day outage in May 2025 did not affect the company’s availability factor, which remained at 100% for the first half of the year.
The management noted a 4% year-on-year increase in national power demand during the period and anticipates continued growth throughout the year. They are awaiting regulatory approval for initiating gas supply from Pakistan Exploration Limited, with expectations that it could enhance the plant’s load factor to 48-50%.
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EPQL continues to explore alternative fuel sources to boost operational efficiency and remains in discussions with authorities regarding regulatory approvals. The stock is not currently under formal coverage by AKD Securities Limited.
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