Sitara Energy Limited
Corporate
Briefing
Session by CFO.
For the Year Ended June 30, 2023
November 27, 2023
Presentation Outlines
1- Review of 2023
2- Operating Results/Highlights
3- Future Challenges/Problems
4- Future strategy
5- Question /Answer Session
Sitara Energy Limited
Review of 2023
- Average Furnace oil price remained high at Rs. 151,402 PMT (including GST) during the year 2023 in comparison with that of last year 2022 at Rs. 138,411 PMT (including GST).
- Average PLNG price also remained high at Rs. 3,609 MMBTU during the year 2023 in comparison with that of last year 2022 at Rs. 2,788 MMBTU.
- Non availability of system gas.
Sitara Energy Limited
Review of 2023
- Textile Sector was provided subsidized gas @ 9/MMBTU by the Government of Pakistan for their generation and industrial usages. Moreover, Textile Sector was also provided subsidized electricity tariff @ 9 cent/kWh.
- Accordingly, our Bulk Power Consumers either preferred their own power generation through subsidized gas or purchasing subsidize electricity from respective Disco.
Sitara Energy Limited
Review of 2023
- The country witnessed one of the worst Pak Rupees devaluation leading to increase in all imported stores, spare parts and lubricants.
- SBP Policy rate also increased from 15% to 22% during the year. However, two financing facilities have been rescheduling at cost of funds. The management is pursuing the other financial institutions for early rescheduling of credit facilities as per their respective cost of funds to further reduce losses and possible revival of the company.
Sitara Energy Limited
Operating Results/Highlights
Description | FY 2023 | FY 2022 | Variance | % | ||
Sales revenue | Rs '000' | 1,067,686 | 482,312 | 585,374 | 55 | |
Cost of generation | Rs '000' | 1,018,864 | 476,833 | 542,031 | 53 | |
Gross profit | Rs '000' | 48,822 | 5,479 | 43,343 | 89 | |
Other income | Rs '000' | 46,332 | 12,722 | 33,610 | 73 | |
Operating expenses | Rs '000' | 48,858 | 48,920 | 62 | - | |
Other operating expenses | Rs '000' | 5,274 | - | 5,274 | 100 | |
Finance cost | Rs '000' | 141,873 | 122,810 | 19,063 | 13 | |
(Loss) for the year before | Rs '000' | (100,850) | (153,529) | 52,679 | 52 | |
taxation | ||||||
Provision for taxation | Rs '000' | 2,431 | 1,367 | 1,064 | 44 | |
(Loss) for the year | Rs '000' | (103,282) | (154,896) | 51,614 | 50 | |
(Loss) per share | Rs | (5.41) | (8.11) | |||
Sitara Energy Limited
Operating Results/Highlights
Year | Generation | Generation |
(kWh) | (MW) | |
2017-18 | 212,259,327 | 24.23 |
2018-19 | 69,720,738 | 7.96 |
2019-20 | 57,192,561 | 6.53 |
2020-21 | 30,916,658 | 3.53 |
2021-22 | 15,375,110 | 1.76 |
2022-23 | 33,104,400 | 3.78 |
Sitara Energy Limited
Future Challenges/Problems
- There is no chance of allocation of system gas in view of depleting natural gas resources. RFO and RLNG price are unpredictable in the foreseeable future.
- Whenever any opportunity of operation is available, the management does best for achieving better efficiency in fuels consumption to reduce operational losses.
- The management of the company is trying to find any opportunity of load demand at its best.
Sitara Energy Limited
Future strategy
- The management is negotiating with the lenders for restructuring/ rescheduling of credit facilities at cost of funds which will be helpful for reduction of finance cost and repayment of the credit facilities over the next few years. After complete rescheduling by the lender, the plan for revival of operation will be clear.
- The company is planning to add solar power plant in its generation facilities subject to requisite approvals by NEPRA and availability of concessionary funding.
- In addition, the management is taking the requisite measures for reduction of all sorts of in cost leading to minimization of losses.
Sitara Energy Limited
Question /Answer Session
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Disclaimer
Sitara Energy Ltd. published this content on 24 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 November 2023 10:41:07 UTC.