K-Electric (KE) held its 106th Annual General Meeting (AGM) – FY 2016 at a local hotel in Karachi. The meeting was chaired by Khalid Rafi, Independent Director on KE Board, in the presence of Tayyab Tareen, CEO; Moonis Alvi, CFO; Rizwan Dalia, Company Secretary and other members of KE leadership.
KE’s performance has shown sustained improvement over the years. The power utility declared profits of PKR 32.75 billion including deferred tax of PKR 7.95 billion during FY 2016 as compared to PKR 28.32 billion during the same period of FY 2015 – reporting a growth of 15.6%. The company’s earnings per share (EPS) also increased to 1.19 rupees per share as compared to 1.03 rupees. Moreover, reduction in T&D losses, which decreased to 22.2% compared to 23.7% last year, showing a reduction of 1.5%, together with the gains resulting from higher electricity units sent out (FY 2016: 16,545 GWh; FY 2015: 16,111 GWh), have led to an improvement in EBITDA of 28.1%.
On this occasion, the management of KE apprised the shareholders about the development of USD 1 billion 900 MW Bin Qasim Power Station III project and the progress of USD 440 million TP-1000 (Transmission Enhancement Plan) project. KE has further intensified its drive against power theft and illegal abstraction. “Installation of Aerial Bundled Cables (ABC), which is an innovative concept for power distribution guaranteeing both safety and higher system efficiencies, is also part of our vision to further enhance the reliability of power supply across KE’s network. The power utility is also proud to serve its customers with an award-winning call center equipped with the world’s leading customer engagement platform Genesys, state-of-the-art customer relation & billing management system SAP IS-U and successful rollout of handheld devices for meter reading across its network in line with KE’s customer-centric approach and focus on continuous process improvement,” KE management said.
The management also shared the power utility’s robust business plan backed by an investment of over PKR 254 billion in view of the growing power demands and to strengthen the city’s power infrastructure. “In consideration of the power demand-supply gap of the megacity, there is a need to upgrade the power infrastructure through additional investment. However, it is not financially viable unless the review petition on MYT pending with NEPRA is decided with a view to undertaking the sustainability of KE’s future cash flows to undertake large-scale projects in a realistic manner,” KE management highlighted.