KE posts Rs31bn loss in FY23 as finance cost surges

KARACHI: K-Electric Limited (KE) on Friday reported losses in its full-year earnings, owing to an increase in its finance cost.

In a statement to the Pakistan Stock Exchange (PSX), the company reported a net loss of Rs30.982 billion for the year ended June 30, down from a profit of Rs8.469 billion the previous year.

The company also skipped a dividend for this period. Loss per share (LPS) came in at Rs1.12, compared with an earnings per share (EPS) of Re0.31 during the same period last year.

The company said its revenue for the year rose to Rs382.824 billion, compared with Rs346.384 billion a year earlier. Tariff adjustment added the revenue of Rs136.907 billion. However, the purchase of electricity was recorded at Rs223.159 billion against Rs207.544 billion. Consumption of fuel and oil added to the cost by Rs209.759 billion, down from Rs212.487 billion during the same period last year.

The company reported that its finance cost increased to Rs34.572 billion, up from Rs15.122 billion last year. In a separate statement, the power utility company said, “The recently concluded fiscal year was significantly influenced by challenging socio-political and macroeconomic factors that have had a cascading impact on multiple sectors including KE.”

It said that surging inflation, policy rate hikes, rupee devaluation and a contraction in economic activity have cast a significant influence on the company’s operations and overall profitability. Compared with FY22, KE has observed 7.3 percent reduction in units sent out due to reduced economic activity.

“Inflationary pressures and government-mandated increases in prices of electricity have also impacted customer’s propensity to pay, decreasing KE’s recovery ratio from 96.7 percent to 92.8 percent between FY22 and FY23, resulting in an increase in impairment loss against doubtful debts,” the statement added.

KE CEO said, “We understand the current concerns our customers may have but any direction on price of electricity for the country will come from the federal government and is not in KE’s control.”

He pledged KE’s fullest support to those willing to work towards overcoming theft and encouraging regular bill-payment.“Through our envisaged investment, we are also committed to support innovation, sustainability, and liberalisation in the power sector,” he added further.