Years of 26
Excellence
KAPCO - 26 Years of Excellence
&
Way Forward!
October 26, 2023
KAPCO - A Symbol of Successful Public Private Partnership
KAPCO - Overview
➢ Construction By WAPDA - 5 Phases (1985-1996) |
Current shareholding structure
➢ Company | April 1996 (to acquire Power complex from WAPDA) |
Incorporation | |
June 1996 - Thru International Competitive Bidding | |
➢ Privatisation - 36% shares sold to National Power UK with | |
management control | |
40.25%
WAPDA
49.27%
Gen Public
(over 65,000 shareholders)
5.48%
KAPCO BESOS
Trust
5.00%
United Bank
Ltd
➢ Listing | 2005 - Listed on Stock Exchanges |
➢ PPA | 25 Years till Jun 2021 |
(extended till Oct-2022 thru settlement) | |
➢ Generation | Initial expiry - 21-Sep-21 |
License | Extended till 21-Sep-24 |
➢ Capacity | 1600 MW (ADC 1345MW) |
➢ Fuel | Only Multi Fuel Plant - LSFO, Gas/RLNG, HSD |
➢ Technology | CCGT - 10 Gas Turbines, 5 Steam Turbines |
ISO 19001 - 2015 Quality Management System | |
➢ Certifications | ISO 14001 - 2015 Environment Management |
ISO 45001 - 2018 Occupational Health & Safety | |
Management | |
KAPCO
- KAPCO is the shining example of Privatisation - Public Private Partnership.
- KAPCO is being managed and operated according to best international utility practices since its privatization in 1996.
- Total dividend payment since 1996: Rs. 154.3 billion (Rs. 175.3/share). Since listing in 2005 Rs. 118.7 billion(Rs. 134.9/share)
- KAPCO paid around Rs. 71 billionof tax to Govt of Pakistan
KAPCO - Techno Commercial Strengths
KAPCO - Techno Commercial & Strategic Importance
Technical
- Included in approved IGCEP 2022-31 based on technical strengths
- Optimum size machines and lesser ramp-up Quick Start, can support peaking demand
- 10 Gas Turbines with HRSG, 5 Steam Turbines
- 6 units are connected at 132 KV system
- 9 Units connected at 220 KV system
- 4 auto transformers with 500 MVA Auto Transformer capacity
- Multi-Fuel /Fuel Flexibility
- KAPCO Complex (EB-1) highest efficiency among furnace oil based power plants in the country
Useful/ Technical Life
- An independent study has been conducted by M/S Ramboll UK on the remaining useful of major equipment of KAPCO Plant
- Based on the study, assessed plant life is more than 10 years
Switchyard Facility
- KAPCO has 132KV~220KV switchyard (500MVA) which is being used by NPCC without any contractual arrangement
- KAPCO Power House is primary sourcefor feeding to remote areas of Layyah, Chowk Azam, Rang Pur, Kot Sultan, Noor Ahmad Wali, Shadan Lund, Tounsa Sharif etc (15 Grid Stations owned by MEPCO, 1 Consumer Grid Station, 1 FESCO Grid Station)
- Low Voltage problem may also aggravate incase of feeding from alternate source especially in summer peak
Energy Security
- KAPCO has blackstart facility to support in case of countrywide blackout
- Multi-Fuel/Fuel Flexibility [Gas / FO / HSD]
- KAPCO has the largest oil storage capacity by any IPP (LSFO 156KT, HSD 40ML). 6 Treatment Plants
- KAPCO is key national & strategic asset and can play its role in the fuel/ energy security of the Country
- KAPCO has dedicated pipelines for Fuel Supply and Gas/RLNG supply (300MMCFD)
KAPCO - Financial Performance 2022-23
Balance Sheet - Breakup June 30, 2023
Non Current Assets | ||
Non Current Liabilities | Current Liabilities | 3.0 |
2.9 | ||
32.8 | ||
Equity 66.1
Current Assets
98.9
Rs in Billion
Current Assets
Description | 2023 | 2022 |
PIB/Sukuk | 50.1 | 54.1 |
Trade Receivables | 26.6 | 62.2 |
Fuel Inventory & Stores | 15.5 | 9.9 |
Advances, deposits, Tax | 4.8 | 6.6 |
Cash & Bank | 1.9 | 1.0 |
98.9 | 133.8 | |
Current Liabilities
Description | 2023 | 2022 |
Bank Finances | 22.1 | 37.4 |
Trade & other payables | 9.6 | 21.5 |
Dividend | 1.1 | 1.0 |
Contract liability | - | 4.6 |
Tax, Others | - | 1.9 |
32.8 | 66.3 | |
Financial Performance: 2023 vs. 2022
Rs in Million | ||
2022-23 | 2021-22 | |
Generation (GWh) | 588 | 4,980 |
Revenue | 25,435 | 136,600 |
Cost of Sales | (26,004) | (128,068) |
Gross Profit | (569) | 8,532 |
Administrative Expenses | (843) | (977) |
Other Expenses | (1,360) | (277) |
Other Income | 15,844 | 12,619 |
Operating Profit | 13,072 | 19,897 |
Finance Cost | (6,253) | (4,373) |
Profit Before Tax | 6,819 | 15,524 |
Tax | (2,861) | (5,630) |
Net Profit | 3,959 | 9,894 |
EPS (Rs / Share) | 4.50 | 11.24 |
Main Reasons for Variance in net profit:
- No revenue post Oct-22 due to PPA expiry;
- Fixed Cost (including salaries) post PPA period;
- FV loss on PIBs and Sukuk - Rs. 1.0 billion
- Insurance, WPPF, WWF and additional income tax charged to P&L. Previously they were pass-through
- Tax rate increased from 33% to 39% (previous PPA rate 36%)
Way Forward!
Tariff Update & Diversification Plans
Tariff Update
-
Generation license:
Generation License extended till 21-Sep-2024. If CTBCM is implemented then there will be no need to extension of generation license, otherwise, extension will be applied before expiry, - IGCEP (2022-31)
IGCEP (2022-31) was approved by NEPRA in Feb-2023 and included minimum 500MW capacity from KAPCO till 2026 due to system constraints. - Tariff Submission & Provisional Tariff
Revised Tariff was submitted in Mar-2023 and NEPRA issued provisional tariff on 4-Aug-2023 on take- and-pay' basis for 500MW in line with IGCEP. - Review Petition for Provisional Tariff
Being aggrieved with the provisional tariff, the Company submitted a Review Petition before NEPRA to record its reservations. - Public Hearing for Final Tariff
NEPRA conducted public hearing for Final Tariff on 3-Oct-2023 where KAPCO management presented its case adequately by highlighting the significant of KAPCO Plant (including its switchyard and blackstart facility). Final Tariff determination is expected to be issued soon
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Disclaimer
Kot Addu Power Company Limited published this content on 26 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 October 2023 14:58:47 UTC.