Saif Power LtdPSX: SPWL

Transmission of 3rd Quarterly Report for the Period Ended September 30, 2024

Oct 30, 2024 at 6:17 AM UTC · Issued by Saif Power Ltd

SAIF POWER LIMITED

A Saif Group Company

Condensed Interim Financial Information

For Nine Months Ended September 30, 2024

CONTENTS

02	Corporate Information

03	Directors' Review Report to the Shareholders

	Condensed Interim Unconsolidated Financial Statements

06	Condensed Interim Unconsolidated Statement of Financial Position
07	Condensed Interim Unconsolidated Statement of Profit or Loss
08	Condensed Interim Unconsolidated Statement of Comprehensive Income
09	Condensed Interim Unconsolidated Statement of Cash Flows
10	Condensed Interim Unconsolidated Statement of Changes in Equity

11	Notes to the Condensed Interim Unconsolidated Financial Statements

	Condensed Interim Consolidated Financial Statements

17	Condensed Interim Consolidated Statement of Financial Position

18	Condensed Interim Consolidated Statement of Profit or Loss
19	Condensed Interim Consolidated Statement of Comprehensive Income
20	Condensed Interim Consolidated Statement of Cash Flows
21	Condensed Interim Consolidated Statement of Changes in Equity

22	Notes to the Condensed Interim Consolidated Financial Statements

Saif Power Limited

CORPORATE INFORMATION

Board of Directors

Mr. Javed Saifullah Khan	Chairman
Mr. Osman Saifullah Khan	Director
Mrs. Hoor Yousafzai	Director
Mr. Assad Saifullah Khan	Director
Mr. Asif Saifullah Khan	Director
Miss. Saima Akbar Khattak	Independent Director
Mr. Rashid Ibrahim	Independent Director

Audit Committee

Mr. Rashid Ibrahim	Chairman
Mr. Osman Saifullah Khan	Member
Mr. Asif Saifullah Khan	Member

Human Resource and Remuneration Committee

Miss. Saima Akbar Khattak	Chairperson
Mrs. Hoor Yousafzai	Member
Mr. Assad Saifullah Khan	Member

Management

Mr. Sohail H. Hydari

Chief Executive Officer

Mr. Muhammad Shakeel

Chief Financial Officer

Mr. Ghias Ul Hassan

GM Power Plant

Mr. Waseemullah

Company Secretary

Auditors

Grant Thornton Anjum Rahman

302 B, 3rd Floor, Evacuee Trust Complex, Aga Khan Road, F-5/1, Islamabad, Pakistan. Tel: +92 51 2271906, Fax: +92 51 2273874

Legal Advisors

Mr. Muhammad Naeem Amer (MNA) Rehan Advocate High Court

Registered/ Head Office

1st Floor, Kashmir Commercial Complex, Fazal-ul-Haq Road Block E, Blue Area, Islamabad, Pakistan.

Tel: +92-51-2271378-83

Fax: +92-51-2277670

Email: info.spl@saifgroup.com

Website

http://www.saifpower.com

Share Registrar

THK Associates (Private) Ltd. Plot No. 32-C, Jami Commercial Street 2, DHA Phase VII, Karachi. Tel: +92-21- 111 000 322, Email: sfc@thk.com.pk

Banks & Financial Institutions

Allied Bank Limited

Askari Bank Limited

Bank Alfalah Limited

Bank Islami Pakistan Limited

Dubai Islamic Bank Limited

Faysal Bank Limited

First Habib Modaraba

Habib Bank Limited

Habib Metropolitan Bank Limited

Meezan Bank Limited

National Bank of Pakistan

Soneri Bank Limited

Bank Makramah Limited (formaly Summit Bank)

The Bank of Punjab

United Bank Limited

Plant Location

Chak 56/5L, Qadarabad,

Multan Road, District Sahiwal,

Punjab, Pakistan.

2 Saif Power Limited

DIRECTORS' REVIEW REPORT TO THE SHAREHOLDERS

FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2024

The Board of Directors is pleased to present a concise review of Saif Power Limited's "the Company" financial and operational performance on the condensed interim financial statements for the nine months period ended September 30, 2024.

SUMMARY OF FINANCIAL PERFORMANCE

Turnover of the Company was Rs. 8,146 million as compared to Rs. 17,602 million for the same period last year. Dispatch level was 9.88% as compared to 31.01% during the same period last year. Net profit during the period amounts to Rs. 1,054 million as against net loss of Rs. 25 million for the comparable period of 2023 (as explained in earlier reports, it was actually not a loss but reserve creation for major overhauling). Earning per share for the period is Rs. 2.73 as compared to loss per share of Rs. 0.07 during the same period last year.

PENDING ISSUES

In the case against M/s Sui Northern Gas Pipelines Limited (SNGPL), after the arbitration award in Company's favor for an amount of Rs. 270.66 million (disputed amount of Rs. 239.68 million & related costs of Rs. 30.98 million), the Company filed a petition in the Civil Court Lahore to obtain the enforcement Decree in lieu of the Arbitration award. The Company has already adjusted the awarded amount as above against payables to SNGPL.
SNGPL enforced another arbitration saying that Company could not adjust without a decree from the court. The arbitration tribunal has agreed with SNGPL in its decision dated April 22, 2022. SNGPL has filed a petition in the Lahore High Court. During the year 2023, Civil Court Lahore issued decree in favor of the Company. The Honorable Court, whilst making the
Award a rule of Court, modified the Award to the extent that the interest awarded by the Arbitrator would not run from August 18, 2014 and the date of Award, respectively, but from the date of Honorable Court's Order date. This modification was upheld by Lahore High Court. This modification of interest date in Award made is against the arbitration rules. The Company has challenged this modification in Supreme Court of Pakistan which is pending adjudication. Company is confident that ultimately the money will be retained by the Company.
In the matters of 'Period Weighing Factors' (PWF) and 'Heat Rate Correction
Factor' with Central Power Purchasing Agency (Guarantee) Limited "Power Purchaser", the Company and the Power Purchaser have mutually resolved the matter. The Power Purchaser has made full payment on account of Heat Rate Corrector Factor amounting to Rs. 344 million while the Company has agreed to forgo its claim on 'loss due to application of PWF'. Accordingly, revenue for the previous period has been adjusted with disputed amount of Rs. 97 million on account of PWF. Arbitration and litigation in this regard have been withdrawn by both parties.

KEY OPERATIONAL AND FINANCIAL DATA (STANDALONE)

	Nine Months ended (unaudited)
	Sep 30, 2024	Sep 30, 2023

	Rupees in Million

Turnover	8,146	17,602
Net profit / (loss)	1,054	(25)

Earnings / (loss) per share	2.73	(0.07)

Dispatch level	9.88%	31.01%
Capacity made available - GWHs	1,344	1,337

	Sep 30, 2024	December 31, 2023
		(Audited)
	Rupees in Million
Property, plant and equipment	10,372	10,863

Loan to associated company	2,480	492

Net worth	12,157	12,166
Short term borrowings	7,231	11,669

KEY FINANCIAL HIGHLIGHTS DATA CONSOLIDATED

	Nine Months ended (unaudited)

	Sep 30, 2024	Sep 30, 2023

	Rupees in Million
Turnover	8,146	17,602

Net profit	1,129	194

	Sep 30, 2024	December 31, 2023
	(Unaudited)	(Audited)
	Rupees in Million

Property, plant and equipment	10,371	10,863

Net worth	12,730	12,664

RECEIVABLES FROM POWER PURCHASER

The Company's total receivables are Rs. 8.250 billion (December 31, 2023: Rs. 9.159 billion) at the period end.

INVESTMENTS

In 2023, the sale transaction of assets of Saif Cement Limited ('SCL') has been completed and sale proceeds were transferred to SCL's bank account. The Board of Directors of the Company had recommended the voluntary winding up of SCL. After the approval from shareholders of SCL, during the period, the funds were transferred to the Company, which are payable on demand, subject to the condition that the tax amount will be settled / adjusted upon winding up of the Company.

LOAN TO SAIF TEXTILE MILLS LIMITED, an associated company

In 2023, the Board of Directors of the Company recommended long term loan maximum up to Rs. 1 (one) billion in compliance with requirements of section 199 of the Companies Act 2017 on as and when required basis. The same was approved by the shareholders in their Extraordinary General Meeting held on September 11, 2023. At the period end, the outstanding amount of long-term loan amounts to Rs. 999.98 million (December 31, 2023: Rs. 492.30 million.)
During the period, the Board of Directors of the Company recommended unsecured running finance facility up to Rs. 1,500 million in compliance with requirements of section 199 of the Companies Act 2017. The same was approved by the shareholders of the Company in their Extra Ordinary General Meeting held on April 15, 2024. At the end of the period, the outstanding amount of running finance facility amounts to Rs. 1,480 million.

ACKNOWLEDGEMENTS

Directors of the Company would like to show their appreciation to CPPA

NTDC, suppliers, financial institutions, regulators and to all other stakeholders for their cooperation and support during the period.

Directors would also like to express their deep appreciation for the services, loyalty and efforts being continuously rendered by the employees of the Company and hope that they will continue to do so in the future.

On behalf of the Board,

Javed Saifullah Khan

Director

Islamabad

October 29, 2024

Saif Power Limited

ےیل ےک تدم یک ہام ون یلاو ےنوہ متخ وک 2024 ربمتس 03

							:(		):ں
	(	)	31	(		) ء
	(	ء2023	2024		30
		10,863			10,372		روا	،

			492			2,480
			12,166			12,157
			11,669			7,231
								:(	):ں
	ء 2023	30	ء 2024	30
			(
			17,602			8,146
			194			1,129
	(	)	31	(		) ء
		ء2023	2024	30			،
			10,863			10,371
			12,664			12,730
						:	و	ف	را
۔ (	برا9.159 :2023	31	برا 8.250		:ىر

SCL						SCL			SCL	2023
			SCL

		.				:ض
			199	2017					a)

11				برا		1		ب	2023
		492.30 :2023	31		999.98
199	2017				(b)
				1,500

						2024		15
	1,480				سا			:فا	ا

			پآ						پآ

				:		ڈر	روا	ز	اڈفآڈر
								ن	ا	و
	2024	29

202430

			:	د	ر
17,602				8,146
	31.01		ر	9.88
25			2023		1,054
،	2.73	-	0.07

				:	ءا ا ز
،		SNGPL)		ز	(a)
239.68		ڈرا	270.66	30.98

		۔ ى د	ا
	2022	22	(SNGPL)

			2023
۔	2014	18	.
	سا
				۔

روا(PWF) 'زو' "ررو" (ر)ارول(b)

344

ىركىٰ دا'ناوواردPWF 97

				PWF
			:(	):ں
ء 2023	30	ء2024	30
	(
17,602	8,146	(	)
(25)	1,054
(0.07)	2.73	(	)
	31.01	9.88	ل
1,337	1,344	GWHS	ب

(	) 31	(	) ء
202ء	3	2024	30

4 Saif Power Limited

UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024

Saif Power Limited

SAIF POWER LIMITED

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

AS AT SEPTEMBER 30, 2024

Note

Share capital and reserves

Un-audited	Audited
September 30,	December 31,
2024	2023

(Rupees)

Share capital
Unappropriated profit - revenue reserve
Maintenance reserve	5
Total equity
Liabilities
Lease liabilities
Non-current liabilities
Trade and other payables	6
Short term borrowings
Sub-ordinated loan	7
Markup accrued	8
Unclaimed dividend
Current portion of lease liabilities
Current liabilities
Total liabilities
Total equity and liabilities
Contingencies and commitments	9
Assets
Property, plant and equipment	10
Right of use assets
Loan to associated company	11
Non-current assets
Loan to associated company	11
Stock in trade - HSD
Trade debts	12
Other receivables	13
Advances
Advance income tax
Trade deposits and prepayments
Short term investments
Bank balances
Assets classified as held for sale	14

Current assets

Total assets

The annexed notes 1 to 22 form an integral part of these financial statements.

3,864,717,790

8,001,717,784

291,196,994

12,157,632,568

24,441,214

2,284,909,686

7,231,058,328

479,294,725

1,325,087,678

26,934,538

11,570,991

11,358,855,946

11,383,297,160

23,540,929,728

10,371,850,669

40,897,847

999,981,000

11,412,729,516

1,480,441,705

399,899,817

8,250,334,048

933,375,507

6,823,743

20,037,654

213,842,640

31,127,052

3,139,406

11,339,021,572

789,178,640

12,128,200,212

23,540,929,728

3,864,717,790

8,087,810,847

213,728,363

12,166,257,000

9,436,235

411,968,780

11,669,326,413

730,519,567

1,390,558,249

118,163,748

6,801,757

14,327,338,514

14,336,774,749

26,503,031,749

10,862,567,248

24,098,636

492,300,000

11,378,965,884

399,899,817

9,159,264,055

678,076,008

1,923,347

9,771,832

128,239,903

3,956,220,043

1,492,220

14,334,887,225

789,178,640

15,124,065,865

26,503,031,749

Chief Financial Officer

Chief Executive Officer

Director

6 Saif Power Limited

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (UNAUDITED)

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024

						Unaudited

			Three months ended		Nine months ended
			September 30,		September 30,		September 30,	September 30,
			2024	2023					2024		2023
	Note				(Rupees)

Turnover - net	15			7,392,666,035							17,602,393,038
4,492,066,660	8,146,122,543
Cost of sales			(3,614,468,639)	(6,008,578,797)				(5,816,215,069)		(15,647,754,082)
Gross profit			877,598,021		1,384,087,238				2,329,907,474		1,954,638,956
Other income			1,681,877	1,497,017				5,150,199		10,604,922
Administrative expenses			(92,586,123)	(59,175,564)				(238,752,615)		(164,113,866)
Finance cost			(251,320,285)	(609,319,038)				(1,042,135,847)		(1,826,491,456)
Net profit / (loss) for the period			535,373,490								1,054,169,211
		717,089,653				(25,361,444)
Earning / (loss) per share - basic and diluted	16		1.39		1.86				2.73		(0.07)

The annexed notes 1 to 22 form an integral part of these financial statements.

Chief Financial Officer

Chief Executive Officer

Director

Saif Power Limited

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024

						Unaudited

			Three months ended		Nine months ended
			September 30,		September 30,		September 30,	September 30,
			2024	2023				2024	2023
							(Rupees)
Profit / (loss) for the period
	717,089,653						(25,361,444)
535,373,490	1,054,169,211
Other comprehensive income for the period	-	-				-	-
Total comprehensive profit / (loss) for the period		535,373,490							1,054,169,211
	717,089,653			(25,361,444)

The annexed notes 1 to 22 form an integral part of these financial statements.

Chief Financial Officer

Chief Executive Officer

Director

8 Saif Power Limited

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