KE net profit jumps to Rs 3.39 billion during July-September Fiscal Year 2016

K-Electric's profit after tax grew by 108 per cent or more than Rs 3.39 billion during the first quarter of current fiscal year (July-SeptFY16), according to figures released by the company. During the period under review, KE earned Rs 6.55bn compared to Rs 3.14bn the power utility had made in the corresponding period of FY15. The KE management attributed the significant increase in its revenues to improved fleet efficiency, 1.5pc reduction in Transmission and Distribution (T&D) losses, financial charges and 110 GWh growth in units sent out.
During the period under review, the generation fleet utilisation improved by 3.57pc, KE's own generation was 2,955 GWh as compared to 2,853 GWh. Gas availability was 222 MMCFD (on cumulative average basis) as compared to 213 MMCFD in the corresponding period of last year. It claimed that better utilisation of fleet resulted in improved fleet efficiency ie 36.74pc as compared to 36.5pc. The company consumed fuel and oil worth Rs 16.8bn during the first three months of the current fiscal year as compared to Rs 21.45bn during the same period last year.
KE purchased electricity worth Rs 15.9bn during the said period as against Rs 20.7bn in the same period of last year. The power utility purchased electricity worth Rs 10.24bn from National Transmission and Dispatch Company (NTDC), Rs 4.9bn from Independent Power Producers (IPPs). Besides, electricity amounting to Rs 702 million was purchased from Karachi Nuclear Power Plant during the first three months of FY 15-16. During the period under review, KE earned some Rs 45.82bn from the sale of energy as against Rs 41.6bn during the first three months of last year. The power utility purchased some 1,927 GWh units during the period under review as against 1908 GWh units in the same period of last year.
Moreover, the power utility received some Rs 6bn on account of tariff adjustment from the federal government as against Rs 14.21bn during July-September FY14-15. During the financial year ended 30 June 2015, KE pre-paid expensive foreign (IFC/ADB) and local loans through the issuance of SUKUK at lower rates. This along with improved profit levels and reduction in furnace oil rates led to decline in financial charges considerably during the period under review.
The KE, however, regretted that receivables from government entities, including Karachi Water and Sewerage Board and City District Government Karachi, continued to increase. The power utility's management has been taking up the matter with the federal and provincial governments to ensure recovery as the stuck up amount was significantly hampering the company's ability to enhance the pace of investment in its infrastructure.