KPCL incurs huge loss in H1

Khulna Power Company Limited (KPCL) incurred a net loss of Tk 79.43 crore in the July-December period of the current fiscal year.

Two overcome miseries, the listed power-sector company, sold one of its three power plants in July 2022, but it still failed to get out of misfortunes.

The power producer generated revenues worth Tk 177.63 crore from the existing two power plants in the first six months of the fiscal year 2022-23, but higher production costs, as well as operating expenses, led it to remain in losses, according to the company’s latest financial report.

The company is currently operating 115MW KPCL-2 and 40MW KPCL-1 power plants.

Earlier in April 2022, Khulna Power Company Ltd had agreed with US-based firm Excelerate Global Operations LLC to sell its 110MW barge-mounted power plant for $1.45 crore.

Later in July last year, it sold the plant at $1.32 crore, according to KPCL data.

The remnant amount was shown as receivable, which was under discussion for recovery, the power producer’s H1 financial report stated.

The company had a little amount of revenue during the first half of the fiscal year 2021-22 because all its power plants had remained shut that time owing to their power supply contract expiries with the government.

The power producer, however, incurred a net loss of Tk 7.12 crore during the July-December period of FY22 due to maintenance and other expenses.

The company in the first six months of FY23, earned Tk 143.99 crore from the 115MW power plant, and Tk 33.64 crore from the 40MW power plant.

In the first six months of FY21, the total income from the 115MW power plant was Tk 258.86 crore, while the revenue from the 40MW power plant was Tk 82.74 crore.

The company reported a loss per share of Tk 2.00 for the July-December period of FY23, against the loss per share of Tk 0.18 for the corresponding period last fiscal.

Previously, the commercial operation of KPC 115MW and 40MW was halted because their power purchase agreements (PPAs) expired on May 31 and May 28, 2021, respectively, with the government.

Due to a lack of production, the company did not publish its first half-yearly report in the last fiscal year.

Mozammel Hossain, company secretary of Khulna Power Company, told The Business Post that both the power plants were currently in production.

Although the company’s power plants remained inoperative for almost 10 months in FY22, its costs of sales increased by 30 per cent that year because the company had to maintain fixed expenses, according to its annual report revealed for the fiscal year 2021-22.

KPCL, the first private sector power producer in the country, is depending on its 155MW capacity in its

units II and III for less than its previous revenue until April 2024, while the company also owns a 35 per cent stake in its sister concern United Payra Power’s 150MW plant having a contract life of more than a decade to come.

KPCL shares which have a face value of Tk 10 each, closed at Tk 26.60 per share on the Dhaka Stock Exchange (DSE) on Monday.