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K-Electric announces its financial results for FY2017

K-Electric Limited has finally announced its financial results for the year that ended 30 June, 2017. After years of delays, K-Electric Limited finally held a meeting on July 4th, 2019 to announce the results. Along with 2017 results, the company also released the financial results for the quarters that ended September 30, 2016, December 31, 2016, and March 31, 2017.

In its financial results issued to the PSX, KE declared profits of Rs 10.4 billion as compared to Rs 31.8 billion, down by 67.26% during the same period of FY 2016. A decline in profits was seen mainly due to a significant reduction in tariff level along with a change in tariff structure under the new Multi Year Tariff (MYT) for the control period July 01, 2016 to June 30, 2023.

Overall sales of the company came at Rs. 183 billion as compared with Rs. 188 billion in the previous year. The cost of sales of the company grew by 10% which dragged down the gross profit to Rs. 39.52 billion, down by 30.84%. Earnings per share (EPS) were reduced to 0.38 rupees per share in FY17 from 1.15 rupees per share in FY16.

A major concern for KE, as with other power sector companies, remains the prevailing circular debt situation affecting the sustainability of the sector. As of June 2019, the outstanding receivables of KE have ballooned to PKR 177 billion on account of outstanding payments from various federal and provincial public sector entities and are nearly two times its payables which total around PKR 99 billion. Other income of the company was up by 41% to Rs. 9.39 billion. However, KE’s balance sheet remains healthy, with total assets amounting to PKR 396 billion in FY 17 as compared to PKR 378 billion in FY 16.

KE is looking to invest up to $3 billion over the next few years. Between 2009 and 2017, they have invested over USD 1.7 billion across the energy value chain resulting in addition to over 1,057 MW of efficient power generation capacity.

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