PKGP swings to loss in CY25

April 01, 2026 (MLN): Pakgen Power Limited (PSX: PKGP) reported a severe financial downturn for the year ended December 31, 2025, swinging to a net loss of Rs333.08m compared to a massive net profit of Rs4.47bn in the previous year.

Consequently, the company's earnings per share (EPS) turned negative, posting a loss per share of Rs0.92 against an EPS of Rs12.01 in the corresponding period last year.

This sharp contraction was primarily driven by a near-total collapse in top-line operations and a massive new maintenance charge.

The company's revenue from contracts with customers plummeted by 92% year-on-year to just Rs925.41m from Rs11.32bn. While the cost of sales also dropped proportionately by 91% to Rs527.70m, the sheer lack of volume meant gross profit shrank by 93% to Rs397.70m from Rs5.35bn in the prior year.

Adding heavy pressure to the shrinking gross margins, PKGP booked a massive new "Plant Maintenance and Preservation Costs" expense amounting to Rs1.80bn, a charge that did not exist in the previous year's accounts.

The company did manage to reduce its administrative expenses by 39% (Rs262.24m) and slash its other expenses by 87% (Rs185.04m).

Furthermore, a 44% jump in other income, which brought in Rs1.99bn, helped to somewhat cushion the operational blow. However, weighed down by the collapsed revenue and the heavy plant preservation costs, profit from operations was nearly wiped out, plunging 97% to Rs139.28m from Rs4.87bn.

Below the operating line, finance costs dropped to a negligible Rs359,000.

Profit before taxation stood at a meager Rs131.84m, representing a 97% drop from the Rs4.75bn recorded last year.

The final blow to the bottom line came from taxation. Despite the near-total wipeout of pre-tax earnings, the company booked a 67% higher taxation charge of Rs464.92m (compared to Rs278.37m last year). This heavy tax burden easily overpowered the remaining pre-tax profit, dragging the final bottom line firmly into the red to close out the year.

Copyright Mettis Link News