Nishat Power’s revenue plummets by 17% owing to lower furnace oil prices

October 23, 2020 (MLN): Nishat Power Limited has made profits of Rs. 920.7 million (EPS: 2.6) for the quarter ended September 30, 2020, i.e. 31.2% lower than the earnings recorded in the same period of last year.

The lower earnings transpired on the back of a 17% decline in revenue, which in turn was a result of the absence of debt portion along with a 21% lower furnace oil prices.

However, the dispatches of the company went up by 11% YoY to 206 GWh (Load Factor: 48%), Arif Habib Limited stated in its analysis of the company’s performance.

The gross profits, too, declined on the back of the absence of debt portion, but the impact of it was subdued by the depreciation of the local currency.

The company saw a 69% decline in its finance cost owing to a decline in the short-term borrowings as well as a lower interest rate regime.

The Board of Directors of the company in-principle approved the terms of the MoU dated August 13, 2020, subject to the following conditions

  1. the satisfactory payment of the receivables of the Company within a definite timeline and
  2. the satisfactory resolution of the matter of retrospective profits
  3. other regulatory approvals, and along with the satisfaction of reservations mentioned in the Company's side letter dated August 13, 2020, which is to be considered an integral part of the MoU.

Consolidated Financial Results for the quarter ended September 30, 2020 (Rupees'000)

 

Sep-20

Sep-19

% Change

Net sales

4,117,102

4,952,515

-16.9%

Cost of goods sold

(3,024,929)

(3,200,175)

-5.5%

Gross profit

1,092,173

1,752,340

-37.7%

Administrative expenses

(67,206)

(75,536)

-11.0%

Other income

725

234

209.8%

Finance cost

(104,988)

(339,039)

-69.0%

Profit before taxation

920,704

1,337,999

-31.2%

Taxation

 

Profit after taxation

920,704

1,337,999

-31.2%

Earnings per share

2.6

3.779

-31.2%

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Posted on: 2020-10-23T17:22:00+05:00

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