K-electric finally publishes financial results for FY 17
Some key figures were released by K-Electric’s board of directors. The company’s financial yearly audits have been behind schedule for the last two years. This back log has been the subject of a lot of controversy among shareholders and industry watchers alike. The financial results were issued to PSX by the Board of Directors.
The company posted a net profit of Rs 10.8 Billion in FY 17 as compared to Rs 31.8 billion for FY 16. The profit for period ending 30 June 2017 is a 67% decrease over the previous year’s profits. That is bad news for shareholders where the earning per share (EPS) have decreased from 1.15 Rs per share to 0.38 Rs per share. This decrease in profit came as a result of tariff restructuring. The new Multi Year Tariff (MYT) (for the control period July 01, 2016 to June 30, 2023).
K-Electric has been the first DISCO to be privatized under the government’s liberalization scheme. According to the CEO, the company invested more than USD 1.7 Billion across its energy value chain. This investment resulted in an additional 1057 MW of power generation capacity. In addition, the investment also increased the fleet efficiency by 6% from 30% in 2009 in 37% in 2017. Furthermore, all of the industry has been exempted from load shedding to ensure good commercial activity.