With a healthy growth of 89 percent, net profit of K-Electric reached Rs 12.88 billion during the last fiscal year (FY14) as compared to Rs 6.82 billion earned in the previous year (FY13). As the power utility has earned a healthy profit, the company board after a gape of 19 years proposed a 15 percent dividend only for minority shareholders. However, the proposed cash dividend for minority shareholders is subject to waiver from all the majority shareholders (GoP, KESP, IFC and ADB).
According to K-E's financial report for the year ended 30 June 2014, earring per share has reached Rs 0.46 per share in FY14 up from Rs 0.26 per share in FY13. During the period under review, subsidy from the federal government reduced by 26 percent, as K-Electric received Rs 55.37 billions on account of tariff adjustment (subsidy) compared to Rs 76.61 billions received by the company in FY13.
The power utility continued to purchase electricity from the external sources, some Rs 82.9 billions were spent on account of purchase of electricity during FY14, while it spent some Rs 78.37 billion during the said period of FY13. On the other hand, the own generation of K-Electric continued to reduced every year.
The company consumed fuel and oil worth Rs 147.3 billions in period under review as compared to fuel and oil consumption worth Rs 146 billion during the corresponding period of last financial year. Sources said that despite payment of such a huge amount by the government to the company on the account of Fuel Adjustment Charges (FAC), the company is also claiming FAC from the consumers every quarter with the approval of National Electric Power Regulatory Authority (NEPRA).
They were of the view that the power utility had significantly enhanced its financial position during the last few years. They blamed the company that it improved its financial position through 'unfair means' including excessive billing to the consumers, bank charges, and demanding meter security deposit from existing consumers on the false plea that the connected load has exceeded or crossed the limit from the sanctioned load. They said that company should step-up to improve its technical capability with a view to strengthen its financial position.
Meanwhile, Mazhar Cahudhry, General Secretary KESC Shareholders, appreciated the decision of the present management of giving 15 percent dividend to the minority shareholders after a long span of 19 years. While elaborating, he said that there are around 15 thousand minority shareholders out of which two thousands are widows and orphans. He said that they appreciated the good gesture of the company to give dividend to only minority shareholders. He further said: "We hope that the major four shareholders will give waiver and consider this fact and will also support us in this regard."
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