Saif Power : Transmission of Quarterly Report for the Period Ended June 30, 2023

SAIF POWER LIMITED

A Saif Group Company

Condensed Interim Financial Information

For Six Months Ended June 30, 2023

CONTENTS

02	Corporate Information
03	Directors' Review Report to the Shareholders
05	Independent Auditors' Review Report
	Condensed Interim Unconsolidated Financial Statements
07	Condensed Interim Unconsolidated Statement of Financial Position
08	Condensed Interim Unconsolidated Statement of Profit or Loss
09	Condensed Interim Unconsolidated Statement of Comprehensive Income
10	Condensed Interim Unconsolidated Statement of Cash Flows
11	Condensed Interim Unconsolidated Statement of Changes in Equity
12	Notes to the Condensed Interim Unconsolidated Financial Statements
	Condensed Interim Consolidated Financial Statements
18	Condensed Interim Consolidated Statement of Financial Position
19	Condensed Interim Consolidated Statement of Profit or Loss
20	Condensed Interim Consolidated Statement of Comprehensive Income
21	Condensed Interim Consolidated Statement of Cash Flows
22	Condensed Interim Consolidated Statement of Changes in Equity
23	Notes to the Condensed Interim Consolidated Financial Statements

Saif Power Limited

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CORPORATE INFORMATION

Board of Directors

Mrs. Hoor Yousafzai	Chairperson
Mr. Javed Saifullah Khan	Director
Mr. Osman Saifullah Khan	Director
Mr. Assad Saifullah Khan	Director
Mr. Rana Muhammad Shafi	Director
Miss. Saima Akbar Khattak	Independent Director
Mr. Rashid Ibrahim	Independent Director

Audit Committee

Mr. Rashid Ibrahim	Chairman
Mr. Osman Saifullah Khan	Member
Mr. Rana Muhammad Shafi	Member

Human Resource and Remuneration Committee

Miss. Saima Akbar Khattak	Chairman
Mrs. Hoor Yousafzai	Member
Mr. Assad Saifullah Khan	Member

Management

Mr. Sohail H. Hydari

Chief Executive Officer

Mr. Hammad Mahmood

Chief Financial Officer

Mr. Ghias Ul Hassan

GM Power Plant

Mr. Waseemullah

Company Secretary

Auditors

Grant Thornton Anjum Rahman

302 B, 3rd Floor, Evacuee Trust Complex, Aga Khan Road, F-5/1, Islamabad, Pakistan. Tel: [phone], Fax: [phone]

Legal Advisors

Mr. Muhammad Naeem Amer (MNA) Rehan Advocate High Court

Registered/ Head Office

1st Floor, Kashmir Commercial Complex, Fazal-ul-Haq Road Block E, Blue Area, Islamabad, Pakistan.

Tel: [phone]

Fax: [phone]

Email: [e-mail]

Website

http://www.saifpower.com

Share Registrar

THK Associates (Private) Ltd. Plot No. 32-C, Jami Commercial Street 2, DHA Phase VII, Karachi. Tel: [phone], Email: [e-mail]

Banks & Financial Institutions

Allied Bank Limited

Askari Bank Limited

Bank Alfalah Limited

Bank Islami Pakistan Limited

Dubai Islamic Bank Limited

Faysal Bank Limited

First Habib Modaraba

Habib Bank Limited

Habib Metropolitan Bank Limited

Meezan Bank Limited

National Bank of Pakistan

Soneri Bank Limited

Summit Bank Limited

The Bank of Punjab

United Bank Limited

Plant Location

Chak 56/5L, Qadarabad,

Multan Road, District Sahiwal,

Punjab, Pakistan.

2 Saif Power Limited

DIRECTORS' REVIEW REPORT TO THE SHAREHOLDERS

FOR THE HALF YEAR ENDED JUNE 30, 2023

The Board of Directors is pleased to present a concise review of Company's financial and operational performance on the condensed interim financial statements for the period ended June 30, 2023.

SUMMARY OF FINANCIAL PERFORMANCE

Turnover of the Company was Rs. 10,210 million as compared to Rs. 11,929 million for the same period last year. Dispatch level was 28.42% as compared to 37.46% during the same period last year. Net loss during the period was Rs. 742 million as against net profit of Rs. 960 million for the comparable period of 2022. Loss per share for the period is Rs. 1.92 as compared to earnings per share of Rs. 2.48 last year.

In the previous years, expenses against overhaul of the plant were charged annually based on the operating hours the plant operated in a year. This was rectified last year in the light of the relevant opinion issued by the Institute of Chartered Accountants of Pakistan and relevant International Accounting Standards during the year ended 31 December 2022. During the period, such interval of specific operating hours of plant operation was completed after a period of almost six years, as a result of which the amount of such overhaul was charged to profit and loss account in the current period, which resulted in loss for the period as operation and maintenance cost increased significantly as compared to the comparable period.

PENDING ISSUES

In the case against M/s Sui Northern Gas Pipelines Limited (SNGPL), after the arbitration award in Company's favor for an amount of Rs.

270.66 million (disputed amount of Rs. 239.68 million & related costs of Rs. 30.98 million), the Company filed a petition in the Civil Court Lahore to obtain the enforcement Decree in lieu of the Arbitration award. The Company has already adjusted the awarded amount as above against payables to SNGPL.

SNGPL enforced another arbitration saying that Company could not adjust without a decree from the court. The arbitration tribunal has agreed with SNGPL in its award. SNGPL has filed a petition in the Lahore High Court, however, the Company's legal advisors are confident that ultimately the money will be retained by the Company.

Central Power Purchasing Agency (Guarantee) Limited (CPPA-G) has applied 'Period Weighing Factors' (PWF) on monthly Capacity Purchase Price (CPP) of the Company since last year. As a result of this, different quarters will have different profit and loss figures. On annual basis, Company would bear a loss as PWF does not equal to 1 (one) in practice. Further, as explained in note 12, the Company has proceeded and filed request for arbitration in London Court of International Arbitration during the period.

Similarly, for deductions by CPPA-G on account of 'Heat Rate Correction Factor', as explained in note 12, in addition of obtaining stay order against these deductions from Civil Court, Islamabad, the Company has proceeded and filed request for arbitration in London Court of International Arbitration during the period.

KEY OPERATIONAL AND FINANCIAL DATA (STANDALONE)

	Six Months Ended
	June 30, 2023	June 30, 2022
		(Re-stated)
	Rupees in Million
Turnover	10,210	11,929
Net (loss) / profit	(742)	960
(Loss) / earnings per share	(1.92)	2.48
Dispatch level	28.42%	37.46%
Capacity made available - GWHs	886	885

	June 30, 2023	December 31,
		2022
	Rupees in Million
Property, plant and equipment	11,194	11,302
Net worth	12,158	13,867
Short term borrowings	8,907	15,527
KEY FINANCIAL HIGHLIGHTS DATA CONSOLIDATED
	Six Months Ended
	June 30, 2023	June 30, 2022
		(Re-stated)
	Rupees in Million
Turnover	10,210	11,929
Net (loss) / profit	(569)	1,189
	June 30, 2023	December 31,
		2022
	Rupees in Million
Property, plant and equipment	11,194	11,302
Net worth	12,568	14,102

RECEIVABLES FROM POWER PURCHASER

The Company's total receivables are Rs. 12.25 billion (December 31, 2022: Rs. 11.65 billion) at the period end.

INVESTMENT IN SAIF CEMENT LIMITED (SCL)

In 2021, the Board of Directors of the Company approved the proposal for sale of land and other assets of SCL which was also approved by the shareholders in the Extra Ordinary General Meeting held on June 26, 2021. During the period, transaction for sale of assets of SCL was completed and related amount have been transferred to SCL's bank account.

EVENTS AFTER REPORTING DATE

a) The Board of Directors of the Company, in its Board Meeting held on August 29, 2023 have approved interim cash dividend of Rs. 1.29 per share.

b) The Board of Directors of the Company has recommended voluntary winding up of SCL. Once liquidation is completed after approval of shareholders, proceeds from liquidation will be used to payback to the Company and other sponsors according to their investment.

ACKNOWLEDGEMENTS

Directors of the Company would like to show their appreciation to its customers, suppliers, financial institutions, regulators and to all other stakeholders for their cooperation and support during the period.

Directors would also like to express their deep appreciation for the services, loyalty and efforts being continuously rendered by the employees of the Company and hope that they will continue to do so in the future.

On behalf of the Board,

Hoor Yousafzai

Chairperson

Islamabad

August 29, 2023

Saif Power Limited

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