AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
KARACHI: Kot Addu Power Company Limited (KAPCO) shared its FY25 financial results and strategic developments during an analyst briefing, highlighting substantial earnings, new business models, and diversification efforts.
KAPCO announced earnings of PkR2.5 billion, translating to an earnings per share (EPS) of PkR2.9. This performance was bolstered by PkR7.1 billion in income from mutual fund investments. The company reported generating 53 GWh of electricity during the fiscal year, a notable change from FY24 when it produced none.
The company has adopted a Hybrid Take-or-Pay model for 495MW of its capacity for a three-year term. This agreement ensures a minimum return of 25% on available capacity, along with revisions to indexation mechanisms, operation and maintenance sharing ratios, and heat rate tests.
KAPCO signed a Tri-Partite Purchase Agreement (TPPA) for its generation plant and switchyard, effective from September 12, 2025. This agreement was accompanied by the completion of heat rate tests.
Trade receivables saw a significant reduction to PkR1.9 billion in FY25, down from PkR10.9 billion in FY24, primarily due to payments received from the Central Power Purchasing Agency (CPPA-G).
In its diversification efforts, KAPCO, in alliance with Fauji Foundation, is bidding to acquire 84.06% equity in Attock Cement Ltd, with each partner set to hold 42.03% equity if successful. The company is also exploring other sectors for expansion.
KAPCO has submitted bids for K-Electric’s solar projects, specifically 120MW in Halkani and 150MW in Metha Ghar, emerging as the lowest bidder. Regulatory approval for these projects is still pending.
As part of the Indicative Generation Capacity Expansion Plan (IGCEP) 2022-31, KAPCO’s inclusion is set till September 2025. The subsequent IGCEP 2025-35 has been submitted for approval to the National Electric Power Regulatory Authority (NEPRA), extending the company’s inclusion until September 2028.