SAIF POWER LIMITED
A Saif Group Company
Condensed Interim Financial Information
For Six Months Ended June 30, 2023
CONTENTS
02 | Corporate Information |
03 | Directors' Review Report to the Shareholders |
05 | Independent Auditors' Review Report |
Condensed Interim Unconsolidated Financial Statements | |
07 | Condensed Interim Unconsolidated Statement of Financial Position |
08 | Condensed Interim Unconsolidated Statement of Profit or Loss |
09 | Condensed Interim Unconsolidated Statement of Comprehensive Income |
10 | Condensed Interim Unconsolidated Statement of Cash Flows |
11 | Condensed Interim Unconsolidated Statement of Changes in Equity |
12 | Notes to the Condensed Interim Unconsolidated Financial Statements |
Condensed Interim Consolidated Financial Statements | |
18 | Condensed Interim Consolidated Statement of Financial Position |
19 | Condensed Interim Consolidated Statement of Profit or Loss |
20 | Condensed Interim Consolidated Statement of Comprehensive Income |
21 | Condensed Interim Consolidated Statement of Cash Flows |
22 | Condensed Interim Consolidated Statement of Changes in Equity |
23 | Notes to the Condensed Interim Consolidated Financial Statements |
Saif Power Limited | 1 |
CORPORATE INFORMATION
Board of Directors
Mrs. Hoor Yousafzai | Chairperson |
Mr. Javed Saifullah Khan | Director |
Mr. Osman Saifullah Khan | Director |
Mr. Assad Saifullah Khan | Director |
Mr. Rana Muhammad Shafi | Director |
Miss. Saima Akbar Khattak | Independent Director |
Mr. Rashid Ibrahim | Independent Director |
Audit Committee
Mr. Rashid Ibrahim | Chairman |
Mr. Osman Saifullah Khan | Member |
Mr. Rana Muhammad Shafi | Member |
Human Resource and Remuneration Committee
Miss. Saima Akbar Khattak | Chairman |
Mrs. Hoor Yousafzai | Member |
Mr. Assad Saifullah Khan | Member |
Management
Mr. Sohail H. Hydari
Chief Executive Officer
Mr. Hammad Mahmood
Chief Financial Officer
Mr. Ghias Ul Hassan
GM Power Plant
Mr. Waseemullah
Company Secretary
Auditors
Grant Thornton Anjum Rahman
302 B, 3rd Floor, Evacuee Trust Complex, Aga Khan Road, F-5/1, Islamabad, Pakistan. Tel: +92 51 2271906, Fax: +92 51 2273874
Legal Advisors
Mr. Muhammad Naeem Amer (MNA) Rehan Advocate High Court
Registered/ Head Office
1st Floor, Kashmir Commercial Complex, Fazal-ul-Haq Road Block E, Blue Area, Islamabad, Pakistan.
Tel: +92-51-2271378-83
Fax: +92-51-2277670
Email: info.spl@saifgroup.com
Website
http://www.saifpower.com
Share Registrar
THK Associates (Private) Ltd. Plot No. 32-C, Jami Commercial Street 2, DHA Phase VII, Karachi. Tel: +92-21- 111 000 322, Email: sfc@thk.com.pk
Banks & Financial Institutions
Allied Bank Limited
Askari Bank Limited
Bank Alfalah Limited
Bank Islami Pakistan Limited
Dubai Islamic Bank Limited
Faysal Bank Limited
First Habib Modaraba
Habib Bank Limited
Habib Metropolitan Bank Limited
Meezan Bank Limited
National Bank of Pakistan
Soneri Bank Limited
Summit Bank Limited
The Bank of Punjab
United Bank Limited
Plant Location
Chak 56/5L, Qadarabad,
Multan Road, District Sahiwal,
Punjab, Pakistan.
2 Saif Power Limited
DIRECTORS' REVIEW REPORT TO THE SHAREHOLDERS
FOR THE HALF YEAR ENDED JUNE 30, 2023
The Board of Directors is pleased to present a concise review of Company's financial and operational performance on the condensed interim financial statements for the period ended June 30, 2023.
SUMMARY OF FINANCIAL PERFORMANCE
Turnover of the Company was Rs. 10,210 million as compared to Rs. 11,929 million for the same period last year. Dispatch level was 28.42% as compared to 37.46% during the same period last year. Net loss during the period was Rs. 742 million as against net profit of Rs. 960 million for the comparable period of 2022. Loss per share for the period is Rs. 1.92 as compared to earnings per share of Rs. 2.48 last year.
In the previous years, expenses against overhaul of the plant were charged annually based on the operating hours the plant operated in a year. This was rectified last year in the light of the relevant opinion issued by the Institute of Chartered Accountants of Pakistan and relevant International Accounting Standards during the year ended 31 December 2022. During the period, such interval of specific operating hours of plant operation was completed after a period of almost six years, as a result of which the amount of such overhaul was charged to profit and loss account in the current period, which resulted in loss for the period as operation and maintenance cost increased significantly as compared to the comparable period.
PENDING ISSUES
In the case against M/s Sui Northern Gas Pipelines Limited (SNGPL), after the arbitration award in Company's favor for an amount of Rs.
270.66 million (disputed amount of Rs. 239.68 million & related costs of Rs. 30.98 million), the Company filed a petition in the Civil Court Lahore to obtain the enforcement Decree in lieu of the Arbitration award. The Company has already adjusted the awarded amount as above against payables to SNGPL.
SNGPL enforced another arbitration saying that Company could not adjust without a decree from the court. The arbitration tribunal has agreed with SNGPL in its award. SNGPL has filed a petition in the Lahore High Court, however, the Company's legal advisors are confident that ultimately the money will be retained by the Company.
Central Power Purchasing Agency (Guarantee) Limited (CPPA-G) has applied 'Period Weighing Factors' (PWF) on monthly Capacity Purchase Price (CPP) of the Company since last year. As a result of this, different quarters will have different profit and loss figures. On annual basis, Company would bear a loss as PWF does not equal to 1 (one) in practice. Further, as explained in note 12, the Company has proceeded and filed request for arbitration in London Court of International Arbitration during the period.
Similarly, for deductions by CPPA-G on account of 'Heat Rate Correction Factor', as explained in note 12, in addition of obtaining stay order against these deductions from Civil Court, Islamabad, the Company has proceeded and filed request for arbitration in London Court of International Arbitration during the period.
KEY OPERATIONAL AND FINANCIAL DATA (STANDALONE)
Six Months Ended | ||
June 30, 2023 | June 30, 2022 | |
(Re-stated) | ||
Rupees in Million | ||
Turnover | 10,210 | 11,929 |
Net (loss) / profit | (742) | 960 |
(Loss) / earnings per share | (1.92) | 2.48 |
Dispatch level | 28.42% | 37.46% |
Capacity made available - GWHs | 886 | 885 |
June 30, 2023 | December 31, | |
2022 | ||
Rupees in Million | ||
Property, plant and equipment | 11,194 | 11,302 |
Net worth | 12,158 | 13,867 |
Short term borrowings | 8,907 | 15,527 |
KEY FINANCIAL HIGHLIGHTS DATA CONSOLIDATED | ||
Six Months Ended | ||
June 30, 2023 | June 30, 2022 | |
(Re-stated) | ||
Rupees in Million | ||
Turnover | 10,210 | 11,929 |
Net (loss) / profit | (569) | 1,189 |
June 30, 2023 | December 31, | |
2022 | ||
Rupees in Million | ||
Property, plant and equipment | 11,194 | 11,302 |
Net worth | 12,568 | 14,102 |
RECEIVABLES FROM POWER PURCHASER
The Company's total receivables are Rs. 12.25 billion (December 31, 2022: Rs. 11.65 billion) at the period end.
INVESTMENT IN SAIF CEMENT LIMITED (SCL)
In 2021, the Board of Directors of the Company approved the proposal for sale of land and other assets of SCL which was also approved by the shareholders in the Extra Ordinary General Meeting held on June 26, 2021. During the period, transaction for sale of assets of SCL was completed and related amount have been transferred to SCL's bank account.
EVENTS AFTER REPORTING DATE
a) The Board of Directors of the Company, in its Board Meeting held on August 29, 2023 have approved interim cash dividend of Rs. 1.29 per share.
b) The Board of Directors of the Company has recommended voluntary winding up of SCL. Once liquidation is completed after approval of shareholders, proceeds from liquidation will be used to payback to the Company and other sponsors according to their investment.
ACKNOWLEDGEMENTS
Directors of the Company would like to show their appreciation to its customers, suppliers, financial institutions, regulators and to all other stakeholders for their cooperation and support during the period.
Directors would also like to express their deep appreciation for the services, loyalty and efforts being continuously rendered by the employees of the Company and hope that they will continue to do so in the future.
On behalf of the Board,
Hoor Yousafzai
Chairperson
Islamabad
August 29, 2023
Saif Power Limited | 3 |
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Saif Power Ltd. published this content on 30 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 August 2023 03:14:29 UTC.