Pakgen Power slips to Rs412m loss in H1 2025

August 29, 2025 (MLN): Pakgen Power Limited (PSX: PKGP) announced its financial results for the six months ended June 30, 2025, reporting a sharp downturn in operational performance, as revenues collapsed and plant maintenance costs weighed heavily on profitability.

The company posted a net loss of Rs412.12 million, compared to a profit of Rs4.00 billion in the same period last year. Accordingly, the loss per share stood at Rs1.11, against earnings per share of Rs10.75 in H1 2024.

Revenue from contracts with customers plunged by 88.39% year-on-year to Rs925.41m, from Rs7.97bn last year.

The cost of sales declined 87.45% to Rs529.93m, but the drop in revenue left gross profit down by 89.46% to Rs395.47m.

During the period, the company incurred significant plant maintenance and preservation costs amounting to Rs1.27bn, which further eroded margins.

Administrative expenses decreased marginally by 6.81% to Rs154.41m, while other expenses more than tripled to Rs9.15m.

Other income, however, provided some relief, increasing by 38.22% to Rs855.79m, compared to Rs619.14m last year.

Operating results turned negative, with a loss of Rs179.71m, against a profit of Rs4.20bn in H1 2024. Finance costs fell sharply by 98.97% to Rs0.24m from Rs22.90m.

The company recorded a loss before levy and taxation of Rs179.95m, against a profit of Rs4.18bn last year. Levy expenses declined 58.09% to Rs34.93m.

After accounting for levy, the loss before tax amounted to Rs214.88m, compared to a profit of Rs4.09bn last year. Taxation expenses, however, doubled to Rs197.25m, further dragging results.

Consequently, Pakgen Power reported a net loss of Rs412.12m for the half-year, a stark reversal from last year’s profitability of Rs4.00bn.

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