Power Sector Earnings Update, August 2025
Two of Pakistan’s major power producers, Nishat Power Limited (NPL) and Nishat Chunian Power Limited (NCPL), just shared a sneak peek of their financial results for the April–June 2025 quarter. Let’s break it down in simple terms:
Nishat Power Limited (NPL)
- Earnings: Expected at Rs 698 million, or Rs 2.0 per share
- Dividend: Rs 2.0/share expected, bringing total for the year to Rs 8.0/share
- Revenue: Down 61% YoY, but improved 24% from last quarter
- Reason for dip: NPL’s plant ran at just 8% capacity, far below last year’s 26%, which means it didn’t earn as much “capacity payment” (a fixed amount paid for availability of the plant).
- Positives: Seasonal rise in electricity demand helped boost revenue QoQ. Interest earned on cash reserves also supported profit.
Bottom Line: Despite lower plant use and revenue, NPL still expects to reward shareholders with a healthy Rs 2.0 dividend, thanks to solid cash on hand.
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Nishat Chunian Power Limited (NCPL)
- Earnings: Expected at Rs 572 million, or Rs 1.6 per share
- Dividend: Rs 2.0/share likely, same as the previous quarter
- Revenue: Down 22% YoY, but up 71% from the last quarter
- Why the increase? Better electricity dispatches and seasonal demand helped lift sales.
However, remember that NCPL took a big one-time financial hit earlier this year due to waiving interest payments, which is why the full-year numbers look weak.
Bottom Line: NCPL’s healthy cash reserves are supporting continued dividends, with Rs 9.0/share expected for the full year.
Quick comparison
| Metric | NPL | NCPL |
|---|---|---|
| EPS (4QFY25) | Rs 2.0 | Rs 1.6 |
| Dividend (4QFY25) | Rs 2.0 | Rs 2.0 |
| Annual Dividend | Rs 8.0 | Rs 9.0 |
| Revenue Growth QoQ | +24% | +71% |
What does this mean for investors?
Both companies are seeing better demand this quarter due to the summer season, but plant utilization is still low, and earnings are below last year’s levels. However, dividends remain strong, making these stocks potentially attractive for income-focused investors.
Keep an eye on how plant usage improves and whether capacity payments return to normal in the coming quarters!
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Source: Taurus Securities Limited
⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →
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