POWERFUL PACE OF GROWTH - Pakistan Stock Exchange › psx › files-attachment › ?file=PKGP-Q2-2017.pdfThe Directors of Pakgen Power Limited “the Company” are pleased to present

POWERFUL PACE OF GROWTHChanging lives aswe grow.

PAKGEN POWER LIMITED

HALF YEARLY REPORTFOR THE PERIOD ENDED

JUNE 30, 2017

Half Yearly Report 2017 1

02 CompanyProfile03 Directors’Report07 Auditor’sReporttotheMembersonReview ofCondensedInterimFinancialInformation08 CondensedInterimBalanceSheet10 CondensedInterimProfitandLossAccount andOtherComprehensiveIncome11 CondensedInterimCashFlowStatement12 CondensedInterimStatementofChangesinEquity13 SelectedNotestotheCondensedInterimFinancialInformation

CONTENTS

PAKGEN POWER LIMITED2

COmpaNy prOfilE

THE COMPANY PakgenPowerLimited(“theCompany”)wasincorporatedinPakistanon22June1995undertheCompaniesOrdinance,1984. The registered office is situated at 53-A, LawrenceRoad, Lahore. The principal activities of the Company aretoown,operateandmaintainanoilfiredpowerstation(“theComplex”) having gross capacity of 365MW in MehmoodKot,Muzaffargarh,Punjab,Pakistan.

BOARD OF DIRECTORS MianHassanMansha Chairman Mr.AurangzebFeroz Mr.ShahidMalik Mr.HassanNawazTarar Dr.ArifBashir Mr.Badar-ul-Hassan Mr.FarrukhIfzalCHIEF EXECUTIVE OFFICER Mr.GhazanfarHussainMirzaAUDIT COMMITTEE Mr.AurangzebFeroz Chairman Mr.ShahidMalik Mr.FarrukhIfzalHR & R COMMITTEE MianHassanMansha Chairman/member Dr.ArifBashir Member Mr.Badar-ul-Hassan Member CHIEF FINANCIAL OFFICER Mr.KhalidQadeerQureshiCOMPANY SECRETARY Mr.KhalidMahmoodChohanBANKERS OF THE HabibBankLimited COMPANY TheBankofPunjab SilkBankLimited UnitedBankLimited AlliedBankLimited NationalBankofPakistan BankAlfalahLimited FaysalBankLimited AskariBankLimited HabibMetropolitanBankLimited NIBBankLimited MCBBankLimited BankIslamiPakistanLimited AlBarakaBank(Pakistan)Limited BankAl-HabibLimitedAUDITOR OF THE RiazAhmad&Co. COMPANY CharteredAccountantsLEGAL ADVISOR OF THE COMPANY Mr.M.AurangzebKhan AdvocateHighCourtREGISTERED OFFICE 53-A,LawrenceRoad, Lahore-Pakistan UAN:042-111-11-33-33HEAD OFFICE 1-B,AzizAvenue,Gulberg-V, Lahore-Pakistan Tel:042-35717090-96 Fax:042-35717239SHARE REGISTRAR CentralDepositoryCompanyofPakistanLimited CDCHouse,99-B,Block-B,S.M.C.H.S Shahra-e-Faisal,Karachi-74400 Tel:(92-21)111-111-500 Fax:(92-21)34326053PLANT MehmoodKot,Muzaffargarh, Punjab-Pakistan.


DirECTOrS’ rEpOrT

TheDirectorsofPakgenPowerLimited“theCompany”arepleasedtopresenttheirreporttogetherwithoperationalandfinancialresultsofyourCompanydulyreviewedbystatutoryauditorsfortheHalfyearended30June2017.

YourCompanyisengagedinpowergenerationwithadependablecapacityof350.00MWfurnaceoilfiredpowerplantagainstagrosscapacityof365MW.ItssharesarelistedonthePakistanStockexchange.TheSolepurchaserofthepowerisWaterandPowerDevelopmentAuthority(WAPDA).Wereportthatduringtheperiodunderreviewpowerplantbyachievingalltheoperatingstandardsdispatched835,698MWHofelectricityascomparedwith824,024MWHdispatchedduringthecorrespondingsixmonthsofthepreviousfinancialyear.Resultantlythecapacityfactorremainedat55.2%asagainst54.4%demonstratedinthecomparablesixmonthsofthepreviousfinancialyear.

Financial Results:

ThefinancialresultsoftheCompanyforthehalfyearended30June2017areasfollows:

HALF YEAR ENDED Financial Highlights 30 June 30June 2017 2016

Revenue(Rs‘000’) 10,510,277 7,367,627Grossprofit(Rs‘000’) 1,076,516 492,993Grossprofitratiotorevenue(%) 10.24 6.69Aftertaxprofit(Rs‘000’) 645,385 98,622Aftertaxprofitratiotorevenue(%) 6.14 1.33Earningspershare(Rs) 1.73 0.27

TheCompanyhaspostedaftertaxProfitofRs.645.385millionasagainstProfitofRs.98.622millionincurredinthecomparativeperiod.ThenetProfitoftheCompanydemonstratedtheProfitperShareofRs.1.73asagainstRs.0.27Profitpershareinthepreviousperiod.ThemainreasonofvariationinProfitisdecreaseinLiquidateddamagesasplantresumedoperationsduringtheperiodunderreference.

AsearlierreportedthatWAPDAhasraisedinvoicesforliquidateddamagestothecompanyonaccountofshortsupplyofelectricitybythecompany.TheCompanyhaddisputedandrejectedbalanceclaimsonaccountofliquidateddamagesthatwereraisedbyWAPDAonthepremisethatitsfailuretodispatchelectricitywasduetoWAPDA’snon-paymentofduesontimelybasistotheCompanyandconsequentialinabilityoftheCompanytomaketimelypaymentstoitsfuelsuppliersthatresultedininadequatelevelofelectricityproductionowingtoshortageoffuel.

TheCompanyandWAPDAappointedformerChiefJusticeofPakistan,JusticeTassaduqHusainJillaniasTheExpert,under themechanismgiven in thePPA.Afteracomprehensiveprocessincludingwrittenstatementsandarguments,On22June2017,TheHonourableExpert,issuedhisconclusionsandrecommendations.TheconclusionupheldCompany’spositionthatWAPDAcannotclaimliquidateddamagesforacausedbyWAPDA.

CompanyhasrequestedWAPDAtowithdrawitsinvoicesforliquidateddamanagesandwaitingforaformalresponse.

Other significant matters

On30September2016,CompanyhadenteredintoanagreementwithGeneralElectric(GE)fortheirassistanceinimprovementinplantperformance.Theproject,calledPEPI,hasbeenrolledout in thefirstsixmonthsof2017. Dedicatedteamsfrombothsideareworkingonpossible


areasofimprovementsomeofwhichwillbeimplementedintheonemonthplannedshutdowninNovember2017.Whensuccessfullyimplemented,thesemeasureswillhelpreducethefuellosses(DeltaLoss).Thegainwillbesharedequallybybothofthecompanies.

Dividend Distribution

TheCompanycontinues tohonor it’scommitmentofsafeguarding theshareholders’ interestsandtakesimmensepleasureininformingyouthattheBoard,intheirmeetingheldonAugust15,2017hasannounced1stInterimCashDividendattherateofPKR1/-pershare(i.e.10%)forthehalfyearendedJune30,2017forwhichthedateofentitlementhasbeenfixedas9September2017to16September2017.

Acknowledgement

Wewishtothankourvaluableshareholders,WAPDA,financialinstitutions,lenders,PakistanStateOilandothersuppliersfortheirtrustandfaith intheCompanyandtheirvaluablesupportthatenabledtheCompanytoachievebetterresults.

Wealsoappreciatethemanagementforestablishingamodernandmotivatingworkingclimateandpromotinghighlevelsofperformanceinallareasofthepowerplant.Wealsotakethisopportunitytothankourexecutivesandstaffmembersfortheirconsistentsupport,hardworkingandcommitmentfordeliveringremarkableresultsandwewishfortheirlongliferelationshipwiththeCompany.

For and on behalf of the Board of Directors

(Ghazanfar Hussain Mirza)ChiefExecutiveOfficerLahore:August15,2017




Introduction

Wehavereviewedtheaccompanyingcondensed interimbalancesheetofPAKGEN POWER LIMITEDasat30June2017andtherelatedcondensedinterimprofitandlossaccount,condensedinterimcashflowstatementandcondensedinterimstatementofchangesinequitytogetherwiththenotesformingpartthereof(hereinafterreferredtoas“condensedinterimfinancialinformation”),forthehalfyearthenended.ManagementisresponsibleforthepreparationandpresentationofthiscondensedinterimfinancialinformationinaccordancewithapprovedaccountingstandardsasapplicableinPakistanforinterimfinancialreporting.Ourresponsibilityistoexpressaconclusiononthiscondensedinterimfinancialinformationbasedonourreview.Thefiguresofthecondensedinterimprofitandlossaccountforthequartersended30June2017and30June2016havenotbeenreviewedandwedonotexpressaconclusiononthemaswearerequiredtoreviewonlythecumulativefiguresforthehalfyearended30June2017.

Scope of Review

Weconductedour review inaccordancewith InternationalStandardonReviewEngagements2410, “Reviewof Interim Financial InformationPerformedby the IndependentAuditor of theEntity”.Areviewofcondensedinterimfinancialinformationconsistsofmakinginquiries,primarilyofpersonsresponsibleforfinancialandaccountingmatters,andapplyinganalyticalandotherreviewprocedures.AreviewissubstantiallylessinscopethananauditconductedinaccordancewithInternationalStandardsonAuditingandconsequentlydoesnotenableustoobtainassurancethatwewouldbecomeawareofallsignificantmattersthatmightbeidentifiedinanaudit.Accordingly,wedonotexpressanauditopinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that theaccompanyingcondensedinterimfinancialinformationasofandforthehalfyearended30June2017isnotprepared,inallmaterialrespects,inaccordancewithapprovedaccountingstandardsasapplicableinPakistanforinterimfinancialreporting.

Emphasis of matter

WedrawattentiontoNote6.1.1tothecondensedinterimfinancialinformationwhichdescribestheuncertaintyregardingoutcomeofclaimslodgedbyCentralPowerPurchasingAgency(CPPA),whichhavebeendisputedbythecompany.Ourconclusionisnotqualifiedinrespectofthismatter.

RIAZ AHMAD & COMPANYChartered Accountants

Name of engagement partner:Mubashar Mehmood

Lahore:August15,2016

aUDiTOrS’ rEpOrT TO THE mEmBErSON rEViEW Of CONDENSED iNTErim fiNaNCial iNfOrmaTiON


Un-audited Audited 30 June 31December Note 2017 2016 (Rupees in thousand)

EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES Authorizedsharecapital 400,000,000(31December2016:400,000,000) ordinarysharesofRupees10each 4,000,000 4,000,000 Issued,subscribedandpaid-upsharecapital 372,081,591(31December2016:372,081,591) ordinarysharesofRupees10each 3,720,816 3,720,816Capitalreserve 116,959 116,959Revenuereserve-Un-appropriatedprofit 11,469,905 11,196,602

Total equity 15,307,680 15,034,377 LIABILITIES NON-CURRENT LIABILITY Long-termfinance-secured 5 557,281 780,194 CURRENT LIABILITIES Tradeandotherpayables 1,403,404 1,521,863Accruedmark-up/profit 120,333 87,211Short-termborrowings 9,452,915 7,249,291Currentportionoflong-termfinance 5 445,825 445,825

11,422,477 9,304,190

Total liabilities 11,979,758 10,084,384 CONTINGENCIES AND COMMITMENTS 6 TOTAL EQUITY AND LIABILITIES 27,287,438 25,118,761 Theannexednotesformanintegralpartofthiscondensedinterimfinancialinformation.

CONDENSED iNTErim BalaNCE SHEETas at 30 June 2017

CHIEF EXECUTIVE


Un-audited Audited 30 June 31December Note 2017 2016 (Rupees in thousand) ASSETS NON-CURRENT ASSETS Property,plantandequipment 7 8,967,642 9,369,818Long-terminvestment - 842Long-termsecuritydeposit 300 300

8,967,942 9,370,960 CURRENT ASSETS Stores,sparepartsandotherconsumables 858,774 836,954Fuelstock 405,662 319,573Tradedebts 14,146,110 11,634,502Advancesandshort-termprepayment 346,226 349,090Otherreceivables 325,588 293,319Salestaxrecoverable 2,097,522 1,723,285Cashandbankbalances 139,614 591,078

18,319,496 15,747,801

TOTAL ASSETS 27,287,438 25,118,761

DIRECTOR


CONDENSED iNTErim prOfiT aND lOSS aCCOUNT fOr THE Half yEar ENDED 30 JUNE 2017 (UN-aUDiTED)

CHIEF EXECUTIVE DIRECTOR

Half Year Ended Quarter Ended 30 June 30 June 30 June 30 June Note 2017 2016 2017 2016 (Rupees in thousand) (Rupees in thousand) REVENUE 10,510,277 7,367,627 5,656,271 4,426,107COSTOFSALES 8 (9,433,761) (6,874,634) (5,133,129) (3,866,363) GROSSPROFIT 1,076,516 492,993 523,142 559,744 ADMINISTRATIVEEXPENSES (97,268) (93,849) (46,819) (45,365)OTHEREXPENSES (11,649) (1,039) (11,110) (546)OTHERINCOME 5,255 1,306 1,584 728 PROFITFROMOPERATIONS 972,854 399,411 466,797 514,561 FINANCECOST (327,469) (300,715) (176,744) (167,615)SHAREOFLOSSFROMASSOCIATEDCOMPANY - (74) - (74) PROFITBEFORETAXATION 645,385 98,622 290,053 346,872TAXATION - - - -

PROFITAFTERTAXATION 645,385 98,622 290,053 346,872 OTHERCOMPREHENSIVEINCOME - - - - TOTALCOMPREHENSIVEINCOMEFORTHEPERIOD 645,385 98,622 290,053 346,872 EARNINGSPERSHARE-BASICANDDILUTED(RUPEES) 1.73 0.27 0.78 0.94

Theannexednotesformanintegralpartofthiscondensedinterimfinancialinformation.


CONDENSED iNTErim CaSH flOW STaTEmENTfOr THE Half yEar ENDED 30 JUNE 2017 (UN-aUDiTED)

Half Year Ended 30 June 30June Note 2017 2016 (Rupees in thousand)CASH FLOWS FROM OPERATING ACTIVITIES Cash utilized in operations 9 (1,756,345) (2,353,786) Financecostpaid (294,347) (260,577)Interestincomereceived 4,409 466Incometaxpaid (5,505) (6,747)Gratuitypaid (5,917) (5,872)

Net cash used in operating activities (2,057,705) (2,626,516) CASH FLOWS FROM INVESTING ACTIVITIES Capitalexpenditureonproperty,plantandequipment (6,559) (162,844)

Net cash used in investing activities (6,559) (162,844) CASH FLOWS FROM FINANCING ACTIVITIES Repaymentoflongtermfinance (222,913) (222,913)Dividendpaid (367,911) (370,835) Net cash used in financing activities (590,824) (593,748) Net decrease in cash and cash equivalents (2,655,088) (3,383,108) Cash and cash equivalents at beginning of the period (6,658,213) (5,080,056) Cash and cash equivalents at end of the period (9,313,301) (8,463,164) CASH AND CASH EQUIVALENTS Cashinhand 110 285Cashatbanks 139,504 12,879Short-termborrowings (9,452,915) (8,476,328)

(9,313,301) (8,463,164) Theannexednotesformanintegralpartofthiscondensedinterimfinancialinformation.



CONDENSED iNTErim STaTEmENT Of CHaNGES iN EQUiTyfOr THE Half yEar ENDED 30 JUNE 2017 (UN-aUDiTED)

RESERVES SHARE Capital Revenue

TOTAL CAPITAL Retained Un- EQUITY payments appropriated reserve profit ( - - - - - - - - - -- - -Rupees in thousand - - - - - - - -- - - ) Balance as at 31 December 2015 - audited 3,720,816 116,959 11,423,87615,261,651 Transactionwithowners-Finaldividendfortheyearended31December2015@Rupee1pershare - - (372,082) (372,082) Profitforthehalfyearended30June2016 - - 98,622 98,622Othercomprehensiveincomeforthehalfyearended30June2016 - - - -TotalcomprehensiveIncomeforthehalfyearended30June2016 - - 98,622 98,622 Balanceasat30June2016-un-audited 3,720,816 116,959 11,150,41614,988,191 Transactionwithowners-Interimdividendfortheyearended31December2016@Rupee1pershare - - (372,082) (372,082) Profitforthehalfyearended31December2016 - - 418,268 418,268Othercomprehensiveincomeforthehalfyearended31December2016 - - - -Totalcomprehensiveincomeforthehalfyearended31December2016 - - 418,268 418,268 Balanceasat31December2016-audited 3,720,816 116,959 11,196,60215,034,377 Transactionwithowners-Finaldividendfortheyearended31December2016@Rupee1pershare - - (372,082) (372,082) Profitforthehalfyearended30June2017 - - 645,385 645,385Othercomprehensiveincomeforthehalfyearended30June2017 - - - -Totalcomprehensiveincomeforthehalfyearended30June2017 - - 645,385 645,385 Balance as at 30 June 2017 - un-audited 3,720,816 116,959 11,469,90515,307,680 Theannexednotesformanintegralpartofthiscondensedinterimfinancialinformation.



SElECTED NOTES TO THE CONDENSED iNTErim fiNaNCial iNfOrmaTiONfOr THE Half yEar ENDED 30 JUNE 2017 (UN-aUDiTED)

1. THECOMPANYANDITSOPERATIONS PakgenPowerLimited(“theCompany”)wasincorporatedinPakistanon22June1995

undertherepealedCompaniesOrdinance,1984(NowCompaniesAct,2017).Theregisteredoffice of theCompany is situated at 53-A, LawrenceRoad, Lahore. TheCompany’sordinarysharesarelistedonPakistanStockExchangeLimited.TheprincipalactivitiesoftheCompanyaretoown,operateandmaintainanoilfiredpowerstation(“theComplex”)havinggrosscapacityof365MWinMehmoodKot,Muzaffargarh,Punjab,Pakistan.

2. BASISOFPREPARATION This condensed interim financial information is unauditedbut subject to limited scope

reviewbythestatutoryauditorsand isbeingsubmittedtoshareholdersasrequiredbysection245oftherepealedCompaniesOrdinance,1984.ThiscondensedinterimfinancialinformationoftheCompanyforthehalfyearended30June2017hasbeenpreparedinaccordancewiththerequirementsofInternationalAccountingStandards(IAS)34“InterimFinancialReporting”andprovisionsofanddirectivesissuedundertherepealedCompaniesOrdinance,1984.Incasewhererequirementsdiffer,theprovisionsofordirectivesissuedunder the repealedCompaniesOrdinance,1984havebeen followed.ThiscondensedinterimfinancialinformationshouldbereadinconjunctionwiththeprecedingauditedannualpublishedfinancialstatementsoftheCompanyfortheyearended31December2016.

TheCompaniesOrdinance,1984hasbeenrepealedaftertheenactmentoftheCompanies

Act,2017on30May2017.SECPvideitsCircular17of2017anditspressreleasedated20July2017hasclarified that thecompanieswhosefinancialyear, includingquarterlyandotherinterimperiod,closesonorbefore30June2017shallpreparetheirfinancialstatementsinaccordancewiththeprovisionsoftherepealedCompaniesOrdinance,1984.TheCompaniesAct,2017requiresenhanceddisclosuresaboutCompaniesOperationsandhasalsoenhancedthedefinitionofrelatedparties.

3. ACCOUNTINGPOLICIES Theaccountingpolicies andmethodsof computationsadopted for thepreparationof

thiscondensedinterimfinancialinformationaresameasappliedinthepreparationoftheprecedingauditedannualpublishedfinancialstatementsoftheCompanyfortheyearended31December2016.

4. CRITICALACCOUNTINGESTIMATESANDJUDGMENTS Thepreparationofthiscondensedinterimfinancialinformationinconformitywithapproved

accounting standards requires the useof certain critical accounting estimates. It alsorequiresmanagementtoexerciseitsjudgmentintheprocessofapplyingtheCompany’saccountingpolicies.Estimatesandjudgmentsarecontinuallyevaluatedandarebasedonhistoricalexperienceandother factors, includingexpectationsof futureeventsthatarebelievedtobereasonableunderthecircumstances.

Duringpreparationofthiscondensedinterimfinancialinformation,thesignificantjudgments

madebythemanagementinapplyingtheCompany’saccountingpoliciesandkeysourcesofestimationanduncertaintywerethesameasthosethatappliedintheprecedingauditedannualpublishedfinancialstatementsoftheCompanyfortheyearended31December2016.


Un-audited Audited 30 June 31December 2017 2016 (Rupees in thousand)5. LONG-TERMFINANCE-SECURED Openingbalance 1,226,019 1,671,844 Less:Repaidduringtheperiod/year 222,913 445,825 1,003,106 1,226,019 Less:Currentportionshownundercurrentliabilities 445,825 445,825 557,281 780,194

6. CONTINGENCIESANDCOMMITMENTS 6.1 Contingencies Thereisnosignificantchangeinthestatusofcontingenciesdisclosedinthepreceding

audited annual published financial statements of theCompany for the year ended31December2016exceptforthefollowing:

6.1.1CentralPowerPurchasingAgency(CPPA)hasraisedinvoicesforliquidateddamagesto

theCompanyfrom11thto19th(uptoApril2017)agreementyear(aftertakingintoaccountforcedoutageallowancestipulatedunderthetermsofPowerPurchaseAgreement)onaccountofshortsupplyofelectricitybytheCompany,whichwasduetocashconstraintsoftheCompanyasaresultofdefaultbyCPPAinmakingtimelypayments.LiquidateddamagesinvoicedtotheCompanyamountstoRupees6,443million(31December2016:Rupees6,443million).Outofthese,theCompanyhasacceptedandpaidRupees3,485.277million(31December2016:Rupees3,485million).TheCompanydisputesandrejectsbalanceclaimsonaccountofliquidateddamagesthatareraisedbyCPPAonthepremisethatitsfailuretodispatchelectricitywasduetoCPPA’snon-paymentofduesontimelybasistotheCompanyandconsequentialinabilityoftheCompanytomaketimelypaymentstoitsfuelsupplierthatresultedininadequatelevelofelectricityproductionowingtoshortageoffuel.AgainstthesetheCompanyhasraisedinvoicedisputenoticestoCPPA.TheCompanyappointedmediationexpertunderthemechanismgiveninthePPA.On22June2017,themediationexpertgavehisdecisioninfavouroftheCompany.However,thisdecisionisnotbindingoneitherparty.TheCompanyisintheprocessofnegotiationwithCPPAtosettletheissue.Theultimateoutcomeofthemattercannotpresentlybedetermined,andconsequently,noprovisionforsuchliquidateddamageshasbeenmadeinthiscondensedinterimfinancialinformation.

6.1.2Duringtheperiod,CPPAissuedanoticeon20March2017,disputingalltheinvoicesoftheCompanyonthegroundsthattheCompanywasindefaultofitsobligationsunderthePPAandaccordinglynoteligibleforthecostofworkingcapitalclaimedandadjustmenton account of heat rate savings. TheCompany challanged the dispute notice in theHonourableLahoreHighCourt (“theCourt”).TheCourt issuedastayorder restrainingCPPAfromdisputinganyinvoiceoftheCompany.Themanagementisoftheviewthattherearemeritoriousgroundsavailabletodefendthedisputenoticeandconsequently,noprovisionhasbeenmadeinthiscondensedinterimfinancialinformation.

6.2 Commitments 6.2.1TheCompanyhasenteredintoacontractforaperiodofthirtyyearsforpurchaseoffuel

fromPakistanStateOilCompanyLimited(PSO).UnderthetermsofFuelSupplyAgreement(FSA),theCompanyisnotrequiredtobuyanyminimumquantityoffuelfromPSO.


Un-audited Audited 30 June 31December 2017 2016 (Rupees in thousand)

6.2.2Commitmentsinrespectoflettersofcreditfor capitalexpenditure 71,190 43,832 6.2.3Commitmentsinrespectofotherthan capitalexpenditure 13,466 279,302

7. PROPERTY,PLANTANDEQUIPMENT Operatingfixedassets(Note7.1) 8,936,317 9,298,612 Capitalwork-in-progress(Note7.2) 31,325 71,206 8,967,642 9,369,818 7.1 Operating fixed assets Openingbookvalue 9,298,612 9,223,337 Add:Costofadditionsduringtheperiod/ year(Note7.1.1) 46,440 923,988 Less:Bookvalueofderecognitionsduringthe period/year(Note7.1.2) 9,790 28,350 Less:Depreciationchargedduringtheperiod/year 398,945 820,363

Closingbookvalue 8,936,317 9,298,612 7.1.1 Cost of additions Plantandmachinery 46,384 920,993 Officeequipment 47 1,186 Furnitureandfittings - 595 Electricequipmentandappliances 9 1,214 46,440 923,988

7.1.2 Book value of derecognitions Plantandmachinery -Cost 19,211 64,660 -Less:Accumulateddepreciation 9,421 36,310 9,790 28,3507.2 Capital work-in-progress Plantandmachinery 31,325 71,206


Un-audited Un-audited Half Year Ended Quarter Ended 30 June 30 June 30 June 30 June 2017 2016 2017 2016 (Rupees in thousand) (Rupees in thousand) 8. COSTOFSALES

Fuelcost 8,480,855 5,339,020 4,582,067 3,443,962 Operationandmaintenancecosts 331,304 199,770 235,932 118,843 Insurance 224,587 224,587 112,280 112,293 Depreciation 396,952 381,473 204,097 208,556 LiquidateddamagestoCPPA 63 729,784 61 (16,007) Others - - (1,308) (1,284)

9,433,761 6,874,634 5,133,129 3,866,363

Un-audited Half Year Ended 30 June 30June 2017 2016 (Rupees in thousand)9. CASHUTILIZEDINOPERATIONS Profitbeforetaxation 645,385 98,622 Adjustments for non-cash charges and other items: Depreciation 398,945 383,307 Provisionforgratuity 5,917 5,872 Lossonderecognitionofoperatingfixedassets 9,790 - Shareoflossfromassociatedcompany - 74 Impairmentlossonlongterminvestmentin associatedcompany 842 - Interestincome (4,409) (466) Financecost 327,469 300,715 Cashflowsfromoperatingactivitiesbefore workingcapitalchanges 1,383,939 788,124 Working capital changes (Increase)/decreaseincurrentassets: Stores,sparepartsandotherconsumables (21,820) 3,734 Fuelstock (86,089) (27,608) Tradedebts (2,511,608) (3,374,199) Advancesandshort-termprepayment 8,369 (424,552) Otherreceivables (32,269) 245,648 Salestaxrecoverable (374,237) (286,388)

(3,017,654) (3,863,365) (Decrease)/increaseintradeandotherpayables (122,630) 721,455

(1,756,345) (2,353,786)


10. TRANSACTIONSWITHRELATEDPARTIES RelatedpartiesoftheCompanycompriseofassociatedcompaniesandkeymanagement

personnel.TheCompanyinthenormalcourseofbusinesscarriesouttransactionswiththeserelatedparties.Detailoftransactionswithrelatedpartiesareasfollows:

(Un-audited) (Un-audited) Half Year Ended Quarter Ended 30 June 30June 30 June 30June 2017 2016 2017 2016 (Rupees in thousand) (Rupees in thousand) Relationship with Nature of the Company transaction Associated Insurancepremium 260,330 260,336 130,180 130,164 companies Shareofexpenses 181,002 159,276 94,982 82,210 Shareofrentalincome 846 840 (250) 421 Rentexpense 3,139 3,139 1,569 1,569 Flyingservices 33,395 27,338 19,689 13,665 Dividend 240,114 249,961 240,114 249,961 Boardinglodgingservices 317 - 317 - Purchaseofstores - 225 - 225 Markuppaid 22,283 7,466 13,175 7,466 Loanobtained 1,000,000 1,000,000 1,000,000 1,000,000 Storesandspares transferredto 4,026 1,182 4,026 1,182 Storesandspares transferredfrom 19,521 3,370 19,521 3,370 Insuranceclaim -2,996,833 -2,996,833 Keymanagement personnel Remuneration 12,427 10,780 8,527 8,273

Un-audited Audited 30 June 31December 2017 2016 (Rupees in thousand)

Period end balances: Shorttermloanpayabletoassociatedcompany 1,000,000 656,500 10.1 TheCompanysharespremises,employeesandothercommoncostswithitsassociated

company,LalpirPowerLimitedonfifty-fiftybasis inaccordancewith “SharedFacilitiesAgreement”.

11. EVENTSAFTERTHEREPORTINGPERIOD TheBoardofDirectorsof theCompanyattheirmeetingheldon15August,2017has

proposedcashdividendofRupees1/-pershare.However,thiseventhasbeenconsideredasanon-adjustingeventunderInternationalAccountingStandard(IAS)10‘EventsaftertheReportingPeriod’andhasnotbeen recognized in thiscondensed interimfinancialinformation.


12. FINANCIALRISKMANAGEMENT TheCompany’sfinancialriskmanagementobjectivesandpoliciesareconsistentwiththose

disclosedintheprecedingauditedannualpublishedfinancialstatementsoftheCompanyfortheyearended31December2016.

Thecarryingvaluesofallfinancialassetsandfinancialliabilitiesreflectedinthiscondensed

interimfinancialinformationapproximatetheirfairvalues. 13. CORRESPONDINGFIGURES InordertocomplywiththerequirementsofInternationalAccountingStandard34“Interim

FinancialReporting”,thecondensedinterimbalancesheetandcondensedinterimstatementof changes in equity havebeen comparedwith balances of audited annual publishedfinancial statementsof preceding financial year,whereas, the condensed interimprofitandlossaccount,condensedinterimcashflowstatementhavebeencomparedwiththeamountsofcomparableperiodofimmediatelyprecedingfinancialyear.

Correspondingfigureshavebeenre-arrangedandreclassified,wherevernecessaryforthepurposeofcomparison,however,nosignificantre-arrangementsandreclassificationshavebeenmadeinthiscondensedinterimfinancialinformation.

14. DATEOFAUTHORISATIONFORISSUE Thiscondensedinterimfinancialinformationwasauthorizedforissueon15August,2017

bytheBoardofDirectorsoftheCompany. 15. GENERAL FigureshavebeenroundedofftothenearestthousandRupees,unlessotherwisestated.



53 - A, Lawrence Road, Lahore. Tel: 042 - 36367812 - 16

Fax: 042 - 36367414 I UAN: 042 - 111-11-33-33

PAKGEN POWER LIMITED

POWERFUL PACE OF GROWTH - Pakistan Stock Exchange › psx › files-attachment › ?file=PKGP-Q2-2017.pdfThe Directors of Pakgen Power Limited “the Company” are pleased to present

Documents

POWERFUL PACE OF GROWTH - Pakistan Stock Exchange › psx › files-attachment › ?file=PKGP-Q2-2017.pdfThe Directors of Pakgen Power Limited “the Company” are pleased to present