Engro Powergen Qadirpur Limited (EPQL) reported earnings per share of PKR 2.58 for CY25, compared to PKR 6.61 in CY24. Furthermore, in 4QCY25, the company reported loss per share of PKR 0.05, compared to loss per share of PKR 2.27 in the same period last year (SPLY).
Under the new hybrid model, the company’s profitability is now directly correlated with energy production (load factor). EPQL received a PKR 7.4 billion bullet payment in Q1 2025, significantly reducing its outstanding receivables. Excluding the bullet payment, the company maintained a strong collection rate of 89%.
The load factor for 2025 stood at 42%, impacted by a scheduled “Hot Gas Path Inspection” that kept the plant offline for approximately 20 to 22 days. EPQL successfully received approvals for PEL gas in H2 2025 and is currently utilizing it for power generation.
This contract is for three years, renegotiable for an additional three years, and is expected to expire around 2028. While gas depletion remains a long term risk, the addition of PEL gas has slightly mitigated its intensity. Management identified gas depletion as a primary and ongoing risk for the company’s operations. To address this challenge and ensure long term operational stability, the company has implemented several strategies. The company is actively pursuing three additional gas supply avenues to increase the load factor from 45% to 70–80%.
Regarding Kandhkot Gas (PPL), a summary for surplus gas allocation is currently under review with stakeholders; pricing is expected to remain in line with current levels. Negotiations for the Badar Gas Field are ongoing, with an aim to secure pricing similar to PEL gas in order to maintain a strong position on the merit order.
Salam Gas is part of the PEL corridor. The imported fuels currently remain expensive, keeping indigenous gas based power high on the merit order. The national circular debt has declined to PKR 1.6 trillion (from PKR 2.4 trillion); however, it remains a persistent risk amid evolving geopolitical tensions. EPQL’s overdue receivables stood at PKR 1.5 billion at year end.
The business is partially protected through O&M indexation for up to 70% currency devaluation; beyond this threshold, higher costs for imported spares may adversely impact the company. Management clarified that future payouts will be linked to annual profitability rather than historical receivable clearances.
Important Disclosures
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