K-Electric (KE) held its 108th Annual General Meeting (AGM) - FY 2018, at a local hotel in Karachi. The meeting was chaired by Ikram Sehgal, Chairman KE Board, with Moonis Alvi, CEO K-Electric also in attendance, along with Aamir Ghaziani, CFO; Rizwan Dalia, Company Secretary and CPO and other members of the Board and KE leadership.
KE's performance reflected sustained improvement driven by an investment of more than PKR 44 billion in FY 18 across the power value chain. For FY 18, KE declared a profit of PKR 12.3 billion compared to PKR 10.4 billion during FY 17, resulting in earnings per share (EPS) increasing to 0.45 rupees in FY 18 from 0.38 rupees per share in FY 17. This was accompanied by marked improvement in EBITDA, which increased to PKR 32.4 billion (FY 17: PKR 25.8 billion), a 26% increase over last year. Continuous reduction in TandD losses from 21.7% in FY 17 to 20.4% in FY 18 along with higher units sent-out (16,580 GWh in FY 17 to 17,419 GWh in FY 18) are the major contributing factors towards improved financial results. The Company's Contribution margin rose more than 11% to PKR 67.8 billion from PKR 60.7 billion in FY 17 and balance sheet continues to show consolidation with total assets increasing to PKR 474 billion compared to PKR 396 billion in FY 17.
Shareholders were told about prevailing challenges such as the circular debt situation, which remains a key concern and a severe drain on cash flows. As of September 2019, the outstanding receivables of KE have ballooned to PKR 214 billion on account of outstanding payments from various federal and provincial public sector entities and are nearly two times its payables of around PKR 117 billion. KE management also apprised shareholders about the company's business plan and targets geared towards catering to Karachi's increasing power demand.
The power utility continues to forge ahead in enhancing generation capacity, both through its own sources as well as independent power producers (IPP) and remains committed to continue to invest across the value chain, which will further improve operational performance, thus benefitting consumers. KE has already signed project contracts with Siemens AG and Harbin Electric International for setting-up 900 MW Re-gasified Liquefied Natural Gas (RLNG) power plant at its Bin Qasim Power Complex and is also actively pursuing the 700 MW coal-fired plant being built in collaboration with China Machinery Engineering Corporation (CMEC). However...