Power Generation & Distribution: SOUTHERN ELECTRIC POWER COMPANY LIMITED - Nine Months Ended March 31 2004

The company was incorporated in Pakistan on December 1994 as a public limited company. Southern Electric Power Company's shares are quoted on all three stock exchanges. It has established a 117 Megawatt Power Generation station near Raiwind Lahore.
During the nine months under review the company registered turnover at Rs 1.594 billion (9M 2002-03: Rs 1.980 billion) and gross profit at Rs 571.83 million (9M 2002-03: Rs 700.97 million) registering substantial decline by 19.5% and 18.4% respectively as compared to the figures posted in the same period last year (SPLY).
Operating expenses were higher by Rs 10.14 million but there were large saving in the financial and other charges which reduced sharply by Rs 121.59 million. On the other hand other income also declined by Rs 6 million.
The company posted profit for the 9 months under review at Rs 241.47 million (9M 2002-03: Rs 265.17 million) registering 8.9% decline as compared to the SPLY. But one point is very clear that the profitability of 3rd quarter 2003-04 was identical to the 3rd quarter 2002-03 profit around Rs 40 million.
Hence the directors summarised the Q3 profit, "Despite higher maintenance costs, lower dispatch factor (down by 17%) and the strengthening of Pak rupee vis-à-vis the US dollar resulting in lower capacity and energy revenues, the profitability for the quarter remained consistent with the same quarter last year.
This was mainly due to reduction in fuel charges."

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Performance Statistics                (Million Rupees)

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Balance Sheet                                  -As At-

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                                 March 31      June 30

                                     2004         2003

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Share Capital-Paid-up:           1,242.51     1,242.51

Unappropriated Profit:           1,139.14       897.66

Shareholders Equity:             2,381.65     2,140.17

L.T. Debts:                      3,721.60     4,142.61

Deferred Liability:                 17.62        14.77

Current Liabilities:             1,383.19     1,279.25

Fixed Capital Expenditure:       6,651.32     6,785.59

Current Assets:                    852.74       791.21

Total Assets:                    7,504.06     7,576.80

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Profit & Loss A/c For

 The Nine Months Ended March 31      2004         2003

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Turnover:                        1,594.24     1,979.60

Gross Profit:                      571.83       700.97

Financial & Other (Charges):      (268.79)    (390.38)

Operating Profit:                  240.98       258.69

Other Income:                        0.49         6.48

Profit For The Period:             241.47       265.17

Earnings Per Share (Rs)              1.94         2.63

Share Price (Rs) on 27-9-04:        13.70            -

Price/Earning Ratio:                 7.06            -

Book Value of Share (Rs):           19.17        17.22

Debt/Equity Ratio:                  61:39        66:34

Current Ratio:                       0.62         0.62

Gross Profit Margin (%):            35.87        35.41

Net Profit Margin (%):              15.15        13.39

R.O.A (%):                           3.22         3.50

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