Mughal Energy to launch coal unit after June boiler test

News Image

By MG News | April 08, 2025 at 06:40 PM GMT+05:00

0:00

April 08, 2025 (MLN): Mughal Energy Limited, a wholly owned subsidiary of Mughal Iron & Steel Industries Limited (PSX: MUGHAL), is expected to commence the coal powered unit within 4-8 weeks after the Hydro test for Boilers, which will start by the first week of June 2025.

This was shared during the corporate briefing held today, which was arranged by Sherman Securities.

Power cost from Coal coal-based plant will be 23-25kw/h, which is significantly lower than Grid rates of Rs35-38 kw/h.

Moreover, the company mentioned that the commencement of Mughal Energy will result in annual savings of Rs 1.5 - 1.8 billion.

As per management, the company’s market share improved to 37-38% in the Northern region, with the potential to capture further market share in this region.

The company expects ferrous demand to remain stagnant, with a total market size of 4.5- 5.5 million tons in FY25.

Just to recall, the company’s ferrous volume improved during 1HFY25, whereas ferrous volume declined compared to last year.

Currently, the plant is running on optimal capacity while the melting segment and the Rolling segment are running on utilization of 80% and 60%, respectively.

In the ferrous business, steel rebar contributes 50.6% of the revenue, while Girders contribute 41.3%.

Contribution from Girders significantly improved from last year while contribution from steel rebar & Billets reduced as compared to last year.

On US tariffs, company believes that steel prices to remain stable. However, the reciprocal tariffs on China and other key steel players may create opportunity for Pakistan to enter into export market.

During1HFY25, company’s earnings declined by 83%YoY on the back decrease in gross margin and elevated finance cost.

Segment wise earnings show that non- ferrous business dragged overall earnings downward while ferrous business improved during 1HFY25 compared to same period last year.

Copyright Mettis Link News

Related News

Name Price/Vol %Chg/NChg
KSE100 131,949.07
198.95M
0.97%
1262.41
ALLSHR 82,069.26
730.83M
0.94%
764.01
KSE30 40,387.76
80.88M
1.11%
442.31
KMI30 191,376.82
77.76M
0.36%
678.77
KMIALLSHR 55,193.97
350.11M
0.22%
119.82
BKTi 35,828.25
28.42M
3.64%
1259.85
OGTi 28,446.34
6.84M
-1.02%
-293.01
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 109,520.00 110,525.00
107,865.00
-895.00
-0.81%
BRENT CRUDE 67.40 67.96
67.22
-0.90
-1.32%
RICHARDS BAY COAL MONTHLY 97.50 0.00
0.00
0.75
0.78%
ROTTERDAM COAL MONTHLY 106.00 106.00
105.85
-2.20
-2.03%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 65.61 67.18
65.40
-1.39
-2.07%
SUGAR #11 WORLD 16.37 16.40
15.44
0.79
5.07%

Chart of the Day


Latest News
July 05, 2025 at 11:58 PM GMT+05:00

Weekly Market Roundup


July 05, 2025 at 02:57 PM GMT+05:00

National Savings Schemes see over Rs27bn inflow in May


July 04, 2025 at 10:16 PM GMT+05:00

CAT upholds CCP’s ruling against PREMA Milk


July 04, 2025 at 10:07 PM GMT+05:00

Gold price in Pakistan falls Rs1,500 per tola


July 04, 2025 at 08:01 PM GMT+05:00

TRG in Supreme Court



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg