Overview of Kot Addu Power Company Ltd · ISO 9001:2015 (Quality Management System) ISO 14001:2015...
Transcript of Overview of Kot Addu Power Company Ltd · ISO 9001:2015 (Quality Management System) ISO 14001:2015...
Overview of Kot Addu Power Company Ltd2
Operational Performance3
Financial Performance4
Questions & Answers5
Power Sector Overview1
Index
Pakistan Power Sector – State of the Industry
During last 5 years, over 10,000 MW of power generation has been added in the system, however, overall energy
planning remained integrated across the energy supply chain, with little focus on reducing losses and upgrading
Transmission and Distribution capacity, causing consistent increase in Circular Debt.
As at 31-Dec-18
Source: NTDC IGCEPDuring 2018-19, KAPCO generated 7.8% of total generation by IPPs and
12.5% of total generation on RLNG
Bagasse1%
Gas11%
Wind4%
FO17%
Solar1%
RLNG22%
Imp. Coal8%
Nuclear4%
Hydro32%
Hydel26%
Coal13%
Bagasse1%
F.O.7%
Gas18%
Solar1%
RLNG23%
Mixed1% Nuclear
7%
Wind3%
Fuel Wise Installed Capacity Fuel Wise Generation (2018-19)
Pakistan Power Sector – Key Challenges
Circular Debt
Discrepancies in tariff regime
Unbudgeted Govt.
subsidies
Poor Revenue
Collection by DISCOs
Expensive fuel mix
T&D losses and Theft
Measures against Circular Debt
• Resolving the liquidity issue by issuing sukuks / long
term bonds
• Targeting the theft cases on war footing basis
• Upgrading transmission & distribution infrastructure
• Proper budgeting / planning of Govt. subsidies
• Focusing on reforms in regulatory bodies (Bilateral
Market)
• Improving fuel mix by focusing on green energy
• Improving law and order situation to increase recoveries
• Energy Sukuk-II of Rs 200 billion in pipeline
• Govt. committed to eliminate Circular Debt by Dec-2020
• Monthly pile-up of circular debt reduced from ~ 40b to ~
20b
Overview of Kot Addu Power Company Ltd2
Operational Performance3
Financial Performance4
Questions & Answers.5
Power Sector Overview1
Overview of KAPCO
Largest Single IPP and
Combined Cycle Plant
in Pakistan
Only Tri-Fuel Power
Plant
Best example of
Public Private
Partnership
~4% of Country’s
Generation *
Ability to self start in
country wide blackout
Ownership of 132 KV
and 220 KV grid
stations
~8% of IPPs
Generation *
Total Revenue > Rs 84
Billion *
No of shareholders >
57,700
(Market Cap. Rs 30B)
Among Highest
Dividend Yield
Companies
Block 1 – 4 Gas Turbines & 2 Steam
Turbines
GT3100 MW
Fiat TG
50
STG 9100 MW
ABB
DK2056
GT1100 MW
Siemens
V94.2
GT4100 MW
Fiat TG
50
STG 10100 MW
ABB
DK2056
GT2100 MW
Siemens
V94.2
Block 2 – 4 Gas Turbines & 2 Steam
Turbines
GT6100 MW
Alstom
9001E
STG 11100 MW
RATEAU
VEGA209
GT5100 MW
Alstom
9001E
GT8100 MW
Alstom
9001E
STG 12100 MW
RATEAU
VEGA209
GT7100 MW
Alstom
9001E
Block 3 – 2 Gas Turbines
& 1 Steam Turbine
GT 14130 MW
Siemens
V94.2
STG 15140 MW
Siemens
GT 13130 MW
Siemens
V94.2
* For the year 2018-19
The Power Plant is
located in the district
of Muzaffargarh, 90
km from Multan in the
province of Punjab
Strong Shareholder Base
Out of 8 directors 3 are from WAPDA
WAPDA provides knowledge and experience in Pakistan power industry
Key shareholders included renowned financial institutions, insurance
companies and other renowned individual investors.
Foreign corporate entities/individuals hold 6.7% shares of the
Company.
Total shareholders of the Company as on 30-Jun-19 are 57,702
Shareholding structure Remarks
Shareholding pattern as of 30-Jun-19
In 1996, WAPDA divested its 36% holding to National Power of UK
through International Competitive Bidding
In 2005, another 18% shares were sold to general public through IPO
In 2012, strategic investor sold its entire shareholding to local
investors
As of today, WAPDA stands as the single largest shareholder with ~
40.25% stake
WAPDA40.3%
ABL9.9%
HBL2.4%
UBL7.9%
MCB1.8%
Others32.4%
BESOS5.5%
IMS Accreditations:
ISO 9001:2015 (Quality Management System)
ISO 14001:2015 (Environmental Management System)
OSHAS 18001:2007 (Occupational Health & Safety)
KAPCO Power Complex 10 Gas Turbines, 10 HRSG, 5 Steam Turbines
27 Oil Storage Tanks (Total Capacity ~ 200KT)
6 FOTPs
State of the art workshops
Switch Yards
Black Start Diesel Generator
KAPCO Residential Complex
Over 800 Houses
2 Community Centres
3 Mosques, 2 schools
2 Markets, Guest Houses
Cricket/ Football Grounds
Corporate Social Responsibility
• Free medical and eye camp for needy persons (3000 to 4000 persons)
• Rehabilitation and maintenance of Govt. schools in Kot Addu area
• KAPCO Iftar Dastarkhwan for needy persons during month of Ramadan
• Supply of Medical Equipment to THQ Hospital, Kot Addu
• Scholarship to students of IBA, Karachi
• Donations to various renowned charitable institutions
• Tree plantation for Green Pakistan
Overview of Kot Addu Power Company Ltd2
Operational Performance3
Financial Performance4
Questions & Answers5
Power Sector Overview1
Technical Performance
6,479 6,934
6,583
7,335 7,437
4,961
55.159.0
55.8
62.4 63.3
42.2
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
PER
CEN
TA
GE
GW
HNET OUTPUT
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
4.812.3 15.8
34.2
56.671.0
92.8 84.2 80.8
62.6
42.428.7
2.4 3.5 3.3 3.2 1.0 0.3
FUEL MIX (GENERATION)
Gas FO HSD
80.2
85.5
81.9
84.3
86.0
91.8
74.00
76.00
78.00
80.00
82.00
84.00
86.00
88.00
90.00
92.00
94.00
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
PER
CEN
TA
GE
COMPLEX AVAILABILITY
43.7
44.2
44.0
43.7
44.0 44.0
43.40
43.50
43.60
43.70
43.80
43.90
44.00
44.10
44.20
44.30
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
PER
CEN
TA
GE
COMPLEX THERMAL EFFICIENCY
Overview of Kot Addu Power Company Ltd2
Operational Performance3
Financial Performance4
Questions & Answers5
Power Sector Overview1
Financial Performance
8.78
11.1310.31 10.73
12.06
14.90
7.25 7.75
9.00 9.05 9.10
6.30
0
2
4
6
8
10
12
14
16
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
RS.
PER
SH
AR
E
EPS DPS
Revenue & Generation Dividend Payout
Gross Profit vs Net Profit
12,204
15,146
13,40814,180
13,37914,205
7,730
9,7999,071 9,447
10,617
13,112
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
RS.
IN M
ILLIO
N
Gross profit Net profit
95,834
83,784
46,528
64,024
73,964
64,693
17,372 17,696 17,651 17,823 17,952 20,138
6,479 6,934
6,583
7,335 7,437
4,961
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
-
20,000
40,000
60,000
80,000
100,000
120,000
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
GW
H
RS.
IN M
ILLIO
N
EPP CPP Net Output
15,994 14,894 12,759 11,047 8,663 6,755
79,358 81,369 79,454 104,953
129,783 132,512
26,788 29,729 30,955
32,503
35,093 41,161 63,427 62,473 58,312
81,295
100,605 96,319
5,137 4,060 2,946
2,203
2,749 1,787
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
RS.
IN M
ILLIO
N
Non Current Assets Current Assets Equity
Current Liabilities Non Current Liabilities
Financial Performance – Balance Sheet
Balance Sheet Breakup Last 6 Years
Non Current Assets, 6,755
Current Assets, 132,512
Equity, 41,161
Non Current Liabilities, 1,787
Current Liabilities, 96,319
• Current Assets mainly include Receivable from Off-Taker,
• Current Liabilities mainly include payable to fuel suppliers and banking facilities
Balance Sheet Breakup 30-Jun-19
Financial Performance: 2019 vs. 2018
Reasons for variance in net profit:
Exchange Rate Indexation due to significant depreciation of the Rupee also impacting true-up income
Lower repairs & maintenance costs
Higher net finance income due to higher receivables during the year partially offset by higher finance
cost to banks and fuel suppliers
Rs. in million 2018-19 2017-18 % Change
Revenue - EPP 64,693 73,964 13%
Revenue - CPP 20,138 17,952 12%
Total Revenue 89,792 99,353 -10%
Gross Profit 14,205 13,379 6%
Gross Profit % 16.7% 14.6% 15%
Net Profit 13,112 10,617 23%
Net Profit % 15.5% 11.6% 34%
EPS (Rs / Share) 14.90 12.06 23%
KAPCO – Key Challenges
WAPDA imposed Liquidated Damages (LDs) on Company
amounting to Rs. 27.7 billion treating it as ‘Forced Outage’
due to Non-availability of fuel
LDs Period: Jul-2008 to Sep-2015
KAPCO disputed LDs based on the premise that failure to
dispatch was resultant of non-payment by WAPDA to procure
fuel. KAPCO started Arbitration process as per terms of PPA.
Partial award received in Jun-19 wherein ICC Tribunal decided
that it had jurisdiction over WAPDA and regular hearing of the
case will continue between WAPDA and the Company.
KAPCO and its legal teams are confident that the matter will
be settled in its favour.
PPA Renewal Liquidated Damages
Current PPA of KAPCO is for 25 years, expiring in Jun-2021
As per stipulations of PPA relating to renewal, Company
has taken-up the matter for a new or renewal/extension
of PPA with WAPDA and other relevant quarters of the GoP.
Currently, Govt. is in process of implementing reforms and
formulating a new energy policy for issuance and renewal
of PPAs.
Under new policy, a merchant market contracts regime on
competitive pricing mechanism (Take-and-Pay) is
expected
The terms and conditions under new policy are not yet
clear
KAPCO plant is capable of running beyond 2021.
Additionally NTDC in its Indicative Generation Expansion
Plan 2018-40 has also shown the requirement of
generation from KAPCO beyond 2021.
Overview of Kot Addu Power Company Ltd2
Operational Performance3
Financial Performance4
Questions & Answers5
Power Sector Overview1
The information contained in this
presentation is given without any
liability whatsoever by KAPCO or their
respective members, directors, officers
or employees (collectively “KAPCO") for
any loss whatsoever arising from any use
of this presentation or its contents or
otherwise.
No representation or warranty, express
or implied, is made or given by KAPCO
as to the accuracy, completeness or
fairness of the information or opinions
contained in this presentation. In
particular, no representation or
warranty is made that any projection,
forecast, calculation, forward- looking
statement, assumption or estimate
contained in this presentation should or
will be achieved. There is a substantial
likelihood that at least some, if not all,
of the forward-looking statements
included in this presentation will prove
to be inaccurate, possibly to a
significant degree.
Nothing contained herein should be
deemed to be a prediction or projection
of future performance.
The information contained in this
presentation does not constitute
investment, legal, tax or accounting
advice. Recipients of this presentation
should conduct their own due diligence
and other enquiries in relation to such
information and consult with their own
professional advisors as to the accuracy
and application of the information
contained in this presentation and for
advice relating to any legal, tax or
accounting issues relating to a potential
investment in the Company. This
presentation does not constitute a
recommendation to invest in the
Company.
Certain information contained in this
presentation concerning economic
trends and performance are based on or
derived from information provided by
independent third-party sources. KAPCO
cannot guarantee the accuracy of such
information and has not independently
verified the assumptions on which such
information is based. KAPCO disclaims
any responsibility for any errors or
omissions in such information, including
the financial calculations, projection,
and forecasts in this presentation.