Nishat Power Limited · PSX:NPL
Nishat Power — FY2019 Earnings Presentation
17 slides from Nishat Power's earnings presentation, November 2019
Slide 1: Corporate Briefing Session on Annual Audited Accounts FY June 2019
NISHAT POWER LIMITED Corporate Briefing Session on Annual Audited Accounts for the Financial Year ended June 2019
Slide 2: Contents
Contents Company Brief Operational Highlights Financial Highlights Strategic/Operational Developments 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
Operational Highlights Capacity Utilization %age 90% 82% 80% 74% 72% 70% 68% 60% 50% 39% 40% 30% 20% 10% 0% Year 2015 Year 2016 Year 2017 Year 2018 Year 2019 Reducing trend due to induction of energy through RLNG/COAL and other renewable power plants
Slide 5: Operational Highlights
Operational Highlights Capacity Utilization (%age) Financial Year 2019 vs 2018 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Financial Year 2019 Financial Year 2018
Slide 6: Financial Highlights
Financial Highlights Rs in million FY 2019 FY 2018 6,000 4,998 5,000 4,226 4,000 3,770 3,211 3,000 2,000 1,000 - Gross Profit Net Profit 40.0 32.1 % 30.0 24.9 % 24.2 % 19.0 % 20.0 10.65 9.07 10.0 - Gross Profit %age Net Profit %age Earning per Share
Slide 7: Financial Highlights
Financial Highlights The net profit for year 2019 increased by 17.4% as compared to year 2018, the analysis of reasoning is as follows: Impact on Net Profit 25.0% 20.0% 18.8% 15.0% 10.0% 6.6% 5.0% 2.0% 0.0% -5.0% -10.0% -10.0% -15.0% Higher Tariff Due to Rising Receivables and Lower Plant Operation
Slide 8: 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 9: Strategic/Operational Developments
Strategic/Operational Developments Lalpir Solar Power (Private) Limited - LSPPL During the year, the NEPRA has given generation license to LSPPL. LSPPL applied to Central Power Purchasing Agency for consent to Purchase Power from this project called, Power Acquisition Request (PAR). Recently, Compet
Slide 10: Corporate Social Responsibility
Corporate Social Responsibility • Exhaust gas insulation – Environment and pollution control by adopting latest state of art technology • Renovation of ambulance 1122 • Plantation of trees • Creation of jobs for local community • Road access
Slide 11: Challenges
Challenges Receivables and Circular Debt. Trade Receivable - FY 2019 Receipts in Quarter Total Receivable Rs. in Millions 18,000 15,643 16,000 14,302 13,643 14,000 12,311 12,000 10,000 8,000 6,000 4,903 4,000 4,421 4,000 2,000 1,089 - Sep-18 Dec-18 Mar-19 Jun-19
Slide 12: Challenges
Challenges Liquidity Crises & Dividend Payouts 18,000 80% 75% 16,000 70% 68% 15,643 14,000 60% 12,000 12,329 49% 50% RS IN MILLION 10,000 40% 8,000 8,944 8,050 30% 6,000 6,384 6,420 20% 4,000 4,579 17% 14% 2,000 10% 1,799 932 - - 0% 2015 2016 2017 2018 2019 Short term borrowings Receivable from NTDC
Slide 13: 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 14: Challenges
Challenges Arbitration Disputes Delayed payment charges Rs. 1,084 million disallowed by NTDC Arbitrator has rejected NTDC’s objection to the maintainability of the arbitration proceedings Lahore High Court has restrained NTDC from taking steps for delaying the arbitration proceedings
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 ut
Slide 16: Questions and Answers
Questions and Answers
Slide 17: Thank You
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