Nishat Power Limited · PSX:NPL
Nishat Power — Investor Presentation (September 2020)
17 slides from Nishat Power's investor presentation, September 2020
Slide 1: Nishat Power Limited Corporate Briefing Session
NISHAT POWER LIMITED Corporate Briefing Session on Annual Audited Accounts for the Financial Year ended June 2020
Slide 2: Contents
Contents Company Brief Operational Highlights Financial Highlights Strategic/Operational Developments Challenges Election of Directors Memorandum of Understanding 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
Operational Highlights Capacity Utilization %age 100% 90% 82% 80% 74% 72% 68% 70% 60% 50% 39% 40% 30% 20% 16% 10% 0% Year 2015 Year 2016 Year 2017 Year 2018 Year 2019 Year 2020 Reducing trend due to induction of energy through RLNG/COAL and reduction in economic activities.
Slide 5: Operational Highlights
Operational Highlights Capacity Utilization (%age) Financial Year 2020 vs 2019 100% 89% 90% 80% 70% 68% 62% 60% 52% 50% 47% 45% 46% 43% 43% 41% 40% 38% 30% 28% 28% 20% 16% 11% 10% 2% 0%0% 2%0% 2%0% 0% 0% 0% FY 2019 FY 2020
Slide 6: Financial Highlights
Financial Highlights Rs in million FY 2019 FY 2020 7,000 6,420 6,000 4,998 4,943 5,000 3,770 4,000 3,000 2,000 1,000 - Gross Profit Net Profit 60.0 54.7 % 50.0 42.1 % 40.0 32.1% 30.0 24.2% 20.0 13.96 10.65 10.0 - Gross Profit %age Net Profit %age Earning per Share GP increased by Rs 1,422 million wh
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. 3 billion out of retained earnings – this amount will no
Slide 8: Strategic/Operational Developments
Strategic/Operational Developments Lalpir Solar Power (Private) Limited - LSPPL In the financial year 2016, the Company incorporated a wholly owned subsidiary, Lalpir Solar Power (Private) Limited (‘LSPPL’), since then the Company has taken up 100,000 shares of the LSPPL. The LSPPL’s Power Acquisiti
Slide 9: Challenges
Challenges Receivables and Circular Debt. Trade Receivable - FY 2019 & 2020 20,000 18,000 18,802 19,045 18,111 18,233 16,000 14,302 15,643 14,000 13,643 12,000 12,311 10,000 8,000 6,000 4,903 4,000 4,421 4,000 3,062 3,184 1,842 2,005 2,000 1,089 - Sep/18 Dec/18 Mar/19 Jun/19 Sep/19 Dec/19 Mar/20 Jun
Slide 10: Challenges
Challenges Liquidity Crises & Dividend Payouts 20,000 80% 75% 18,000 18,233 70% 68% 16,000 15,643 60% 14,000 49% 50% 12,000 RS IN MILLION 12,329 10,000 40% 8,000 8,944 8,050 30% 6,000 6,420 6,384 20% 4,000 4,579 17% 14% 4,751 14% 10% 2,000 932 - 1,799 - 0% 2015 2016 2017 2018 2019 2020 Short term bo
Slide 11: Challenges
Challenges Arbitration Disputes Capacity Revenue receivable Rs. 816 million withheld by NTDCL – the management believes that the disputed amount is likely to be recovered due to favourable decisions from the Expert and in International Arbitration Award. Ancillary recoverables under the award are
Slide 12: Challenges
Challenges Arbitration Disputes The company is entitled for delayed payment charges under PPA. However, NTDC had disallowed it, the Company got final favorable decision in July 2020 through International Arbitration Award. On prudence basis, the company has not recognized the income and correspo
Slide 13: Election of Directors
Election of Directors Carried on August 22, 2020 1. Mian Hassan Mansha (Chairman) 2. Mr. Ahmad Aqeel 3. Ms. Maleeha Humayun Bangash 4. Mr. Mahmood Akhtar 5. Mr. Ghazanfar Hussain Mirza (Chief Executive) 6. Mr. Shahzad Ahmad Malik 7. Mr. Norez Abdullah
Slide 14: Memorandum of Understanding (MoU)
Memorandum of Understanding (MoU) MoU signed with Committee for Negotiations with IPPs on Aug 13, 2020 The terms of the MoU are subject to approval of Board of Directors of the Company NEPRA Federal Cabinet Any other corporate approvals that may be required Followed by legal documentation to
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
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