KAPCO Reports Decreased Quarterly Profits Amid Rising Costs

Lahore: Kot Addu Power Company Limited (KAPCO) has released its unaudited financial statements for the quarter ended September 30, 2024, showing a decline in profits as costs continue to rise.

For the quarter, KAPCO reported a revenue decline, with the financial documents highlighting that the company did not generate any revenue from contracts with customers during this period. This marks a significant shift from previous practices, where revenue details were typically disclosed.

According to information available from the Pakistan Stock Exchange (PSX), the cost of sales was not reported, and gross profit figures were similarly withheld. However, the document indicated an increase in plant maintenance and preservation costs to 977.83 million Rupees from the previous year’s 798.71 million. Administrative expenses rose marginally to 141.31 million Rupees from 184.43 million in 2023, while other operating expenses decreased to 233.12 million from 136.43 million Rupees.

The operating profit showed a dramatic decrease to 1,269.61 million Rupees compared to 3,256.38 million in the same quarter of the previous year. Finance costs surged to 205.47 million Rupees, up from 1,319.08 million, further eating into the bottom line.

Profit before levy and income tax stood at 1,064.11 million Rupees, a sharp drop from 1,937.30 million Rupees year-over-year. After accounting for an income tax of 98.10 million Rupees, the net profit for the period was finalized at 1,162.21 million Rupees, down from 1,181.68 million Rupees in the corresponding quarter of 2023. This resulted in earnings per share declining slightly to 1.32 Rupees from 1.34 Rupees.

These figures illustrate a challenging quarter for KAPCO as it navigates financial turbulence amid heightened operational costs and an apparent halt in revenue from customer contracts. The annexed notes to the financial statements, numbered 1 to 18, were cited as integral to understanding the detailed financial outcomes, though specific details from these notes were not disclosed in the summary.

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