Engro Powergen Qadirpur Limited (EPQL) reported earnings per share of PKR 2.58 for CY25, compared to earnings per share of PKR 6.61 in CY24. Furthermore, in 2QCY26, the company reported earnings per share of PKR 0.60, compared to earnings per share of PKR 0.23 in the same period last year (SPLY).
The company achieved a 98% collection rate during the 1HCY26. Total receivables were slightly higher than the previous year end level, reflecting higher load factors and increased gas costs. A key focus area for management remains the mitigation of declining permeate gas availability through alternative fuel options.
Convert Gas is currently the most active initiative and is pending final allocation from the Federal Government. Management has remained actively engaged with relevant stakeholders to ensure that this gas is allocated to the power sector. If approved, it could potentially increase the plant’s load factor to approximately 70%, compared to the current level of 42%.
While the timeline remains dependent on government approval, management tentatively expects the new gas potential to materialize by late CY27 or early 2028. Management’s strategy is centered on securing Convert Gas, which it believes would support the earnings and returns expected by investors through a meaningful improvement in the plant’s load factor. Management also clarified that the company’s earlier plan to divest thermal assets is no longer being pursued.
The company targets a dividend payout ratio of 70% to 80%. Management further clarified that PEL gas has already supported a higher load factor this year, despite operational constraints during 1Q. The company intends to continue maximizing the use of available gas while working on future fuel options to maintain the load factor required under its contractual arrangements.
Important Disclosures
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