Pakgen power swings to Rs296m loss as revenue crashes 91%

October 24, 2025 (MLN): Pakgen Power Limited (PSX: PKGP) has reported a consolidated loss after taxation of Rs296.09 million for the nine months ended September 30, 2025, a stark reversal from a profit after tax of Rs6.20bn in the same period last year.

Total revenue from contracts with customers plummeted 91.44% to Rs925.41m during 9MFY25, compared to Rs10.81bn in the corresponding period of FY24, showing significantly reduced operational activity.

Gross profit witnessed a sharp decline of 93.02% to Rs395.47m, as cost of sales decreased 89.70% to Rs529.93m. The disproportionate decline in gross profit relative to revenue indicates compressed margins and operational challenges.

A major cost component emerged during the period with plant maintenance and preservation costs of Rs1.65bn, which was not present in the prior year, substantially impacting profitability and pointing to significant maintenance activities or plant downtime.

Administrative expenses decreased 20.15% to Rs220.99m, while other expenses declined 12.74% to Rs3.90m, showing some cost containment efforts. Other income grew 34.69% to Rs1.55bn, providing partial offset to operational challenges.

Profit from operations collapsed 98.95% to Rs68.54m, down from Rs6.53bn in 9MFY24, showing the severe impact of reduced revenue and elevated maintenance costs.

Finance costs decreased dramatically by 98.98% to Rs280,000, compared to Rs27.49m in 9MFY24, indicating substantially reduced debt servicing obligations.

Profit before levy and taxation stood at Rs68.26m, down 98.95% from Rs6.50bn last year. After accounting for levy charges of Rs53.01m (down 72.64% from Rs193.77m), profit before taxation came in at Rs15.24m, representing a 99.76% decline.

However, taxation expense increased sharply by 178.07% to Rs311.34m, compared to Rs111.96m in the same period last year, creating a significant burden despite minimal pre-tax profit.

The combination of minimal profit before tax and elevated taxation resulted in a loss after taxation of Rs296.09m, with loss per share recorded at Rs0.80, compared to earnings per share of Rs16.66 in the same period last year.

Total comprehensive loss for the period stood at Rs296.09m, compared to comprehensive income of Rs6.20bn in 9MFY24.

The challenging performance shows Pakgen Power's operational difficulties, including significantly reduced revenue generation, substantial plant maintenance costs, and an unfavorable tax position during the nine-month period, highlighting the volatility and challenges facing the power generation sector.

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