Nishat Power Limited · PSX:NPL
Nishat Power — FY2021 Earnings Presentation
17 slides from Nishat Power's earnings presentation, 2021
Slide 1: Corporate Briefing Session on Annual Audited Accounts FY June 2021
NISHAT POWER LIMITED Corporate Briefing Session on Annual Audited Accounts for the Financial Year ended June 2021
Slide 2: Contents
Contents Company Brief Operational Highlights Financial Highlights Strategic/Operational Developments MoU/Agreements Challenges Business outlook Questions and Answers
Slide 3: Company Brief
Company Brief 200 MW RFO Fired – Combined Cycle Thermal Power Plant Term of Power Purchase Agreement – 25 years Located at 66KM on Multan Road, Tehsil Pattoki Subsidiary of Nishat Mills Limited with 51% equity ownership Established under the “Power Policy 2002” Incorporated in year 2007
Slide 4: Operational Highlights: Capacity Utilization
Operational Highlights Capacity Utilization %age 100% 90% 82% 80% 74% 72% 68% 70% 60% 50% 39% 40% 31% 30% 20% 16% 10% 0% Year 2015 Year 2016 Year 2017 Year 2018 Year 2019 Year 2020 Year 2021 Reducing trend due to induction of energy through RLNG/COAL.
Slide 5: Operational Highlights: Capacity Utilization FY2021 vs 2020
Operational Highlights Capacity Utilization (%age) Financial Year 2021 vs 2020 80% 68% 70% 60% 58% 52% 52% 47% 47% 49% 50% 38% 40% 34% 28% 30% 19% 20% 16% 11% 14% 10% 10% 6% 5% 2% 3% 0% 0% 0% 0% 0% 0% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun FY 2020 FY 2021
Slide 6: Financial Highlights
Financial Highlights Rs in million FY 2020 FY 2021 8,000 6,348 6,000 4,871 4,000 3,443 2,681 2,000 - Gross Profit Net Profit 60.0 54.1 % 50.0 41.5 % 40.0 30.1 % 30.0 23.5 % 20.0 13.76 10.0 7.57 - Gross Profit %age Net Profit %age Earning per Share The main reason of decrease in profits is attributab
Slide 7: Strategic/Operational Developments
Strategic/Operational Developments Maintenance Reserve The maintenance of Power Plant involves cyclical activities and costs. To cater for major maintenance costs in coming years, the management has created a capital reserve amounting to Rs.3bln Lalpir Solar Power (Private) Limited - LSPPL The Share
Slide 8: MoU/Agreements
MoU/Agreements MoU At the request of the Government of Pakistan and in the larger national interest the Company voluntarily agreed to alter certain contractual arrangements for the sustainability of the power sector and an MoU was signed On August 13, 2020, Agreements To convert the MoU into a bindi
Slide 9: MoU/Agreements: Timeline of Significant Events
MoU/Agreements Timeline of Significant Events Date Description 03-Jun-20 Committee for negotiations with Independent Private Power Producers MoU with Committee for negotiations with Independent Private Power 13-Aug-20 Producers 19-Aug-20 Material Information to Pakistan Stock Exchange for execution
Slide 10: MoU/Agreements: Agreements Package
MoU/Agreements AGREEMENTS PACKAGE • Master Agreement, Power Purchase Agreement (PPA) Amendment and Novation Package (PPA, Implementation Agreement and Guarantee Agreement) SALIENT FEATURES OF PACKAGE PAYMENT MECHANISM • Payment of receivables (Rs 14,253 bln) • 1st Payment - 40% • Tariff Adjustment A
Slide 11: Challenges: Receivables and Circular Debt
Challenges Receivables and Circular Debt. Rs in mln Trade Receivable - FY 2020 & 2021 20,000 18,000 19,045 19,620 18,802 18,491 18,964 16,000 18,111 18,233 17,392 14,000 12,000 10,000 8,000 6,000 4,000 3,062 3,184 3,240 3,565 1,623 3,348 1,842 2,020 2,000 - Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20
Slide 12: Challenges: Liquidity Crises & Dividend Payouts
Challenges Rs in mln Liquidity Crises & Dividend Payouts 25,000 80% 75% 70% 20,000 18,233 18,964 60% 15,643 15,000 49% 50% 12,329 40% 10,000 8,944 30% 6,384 6,420 3,642 4,579 4,751 20% 5,000 20% 1,799 17% 10% - 14% 14% - 0% 2016 2017 2018 2019 2020 2021 Short term borrowings Receivable from Power Pu
Slide 13: Challenges: Arbitration Disputes
Challenges Arbitration Disputes Capacity Revenue receivable Rs. 816 million withheld by CPPA. Pursuant to the PPA Amendment Agreement on 12-Feb-2021, the dispute has been amicably resolved. The disputed period has been treated as an Other Force Majeure Event (‘OFME’) under the PPA commenced on Jun
Slide 14: Challenges: Arbitration Disputes
Challenges Arbitration Disputes The company is entitled for certain delayed payment charges under PPA. However, CPPA-G had disallowed it, the Company got final favorable decision in July 2020 through International Arbitration Award. Pursuant to the Master Agreement on 12-Feb-2021, CPPA-G has agree
Slide 15: Business Outlook
Business Outlook • We foresee circular debt to remain a challenge for the government and the energy sector particularly in the near future unless concrete policy measures are taken to address the underlying causes. • Due to increased power generation capacity of the country, the Company’s capacity u
Slide 16: Questions and Answers
NISHAT POWER LIMITED Questions and Answers
Slide 17: Thank You
NISHAT POWER LIMITED Thank You