Saif Power Limited

Updated 09 Jan, 2020

It is a subsidiary company of the Saif Group, a diversified industrial and services conglomerate in Pakistan with investments in power generation (Saif Power Ltd), oil and gas exploration (Saif Energy Ltd), real estate (Elite Estate Pvt. Ltd), textile (Saif Textile, Kohat Textile, Mediterranean Textile Company), bio fuel and organic compost (Lahore Compost Ltd), IT and communications (Softech Systems Ltd), and healthcare (Saif Healthcare Ltd). It was incorporated on 11 November 2004 as a public limited company under the Companies Ordinance 1984.

Saif Power Limited has a combined cycle thermal power plant with a gross capacity of 225 MW. The plant consists of 2 gas turbines from GE France and a steam turbine from Siemens Sweden. The plant uses natural gas as the primary source of fuel, and HSD as secondary source of fuel. The plant commenced its operations on 30th April 2010 under a 30-year Power Purchase Agreement (PPA) with NTDC, a Gas Supply Agreement (GSA) with SSGC, and a Fuel Supply Agreement (FSA) with Shell.

Shareholding pattern Majority of the shares at Saif Power Limited (51 percent) rest with Saif Holding Limited (SHL), which is responsible for business development and investment activities of the Saif Group, and also provides consultancy and other related services to its associated companies. SHL also provides local support and other representative services to leading transnational corporations; it is also the third party sales representative in Pakistan for Motorola Inc. SHL is also the regional service provider in Pakistan, Afghanistan and Central Asian Republics for Iridium Communications Inc., which operates a system of active satellites used for worldwide voice and data communication from hand-held satellite phones and other units.

Another key shareholder holding over 17 percent of the company's share is a foreign company Orastar Limited, and according to the internet, the company is under the laws of British Virgin Islands. The main activity of the company is investments with a wide-ranging portfolio. Over 15 percent of the shares are held by the banks, DFIs and NBFIs, and over 5 percent rest with the general public.

A key receivable issue for Saif Power for long has been an amount of Rs 239.68 million relating to capacity purchase price not acknowledge by NTDC. The reason for this quoted in the firm's annual accounts was non-supply of gas by SNGPL. The arbitration award in SPWL's favour for an amount of Rs 239.68 million against SNGPL was challenged by SNGPL in Lahore High Court (LHC), which was dismissed in the company's favour. The company however, filed a petition in LHC to obtain decree in lieu of the arbitration award and adjusted against payables to SNGPL. SNGPL has filed suit for recovery against this adjustment including a claim for a mark-up from the date of such adjustment. However, as per the company, no amount is payable to SNGPL.

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Saif Power Limited-Shareholdings as on 31 Dec, 2018
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Category of shareholder                  Percentage
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SPONSORS, DIRECTORS, CEO AND CHILDREN        0.0032
ASSOCIATED COMPANIES                         51.045
Saif Holding Limited                         51.045
Saif Textile Mills Limited                    0.000
BANKS, DFI AND NBFI                          15.776
INSURANCE COMPANIES                           1.615
MODARABAS AND MUTUAL FUND                     3.463
GENERAL PUBLIC (LOCAL)                        5.129
GENERAL PUBLIC (FOREIGN)                      0.607
OTHERS                                        2.507
FOREIGN COMPANIES                            19.855
ORASTAR LIMITED                              17.083
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Total                                           100
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Source: Company accounts

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Saif Power Limited
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Rs(mn)                                    9MCY19     9MCY18      YoY
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Turnover-net                              13,284     14,403      -8%
Cost of sales                              9,530     11,383     -16%
Gross Profit                               3,754      3,020      24%
Administrative expenses                      119        110       9%
Finance cost                                 937        606      55%
Other income                                   2          2     -19%
Profit for the period                      2,700      2,306      17%
Earnings per share- basic and diluted       6.99       5.97      17%
Gross margins                             28.26%     20.97%
Net margins                               20.32%     16.01%
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Source: Company Accounts

Copyright Business Recorder, 2020

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