inv analysis presentation final

7/31/2019 Inv Analysis Presentation Final

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POWER SECTOR


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Electricity is a main engine for economic activitiesand industrial growth.

There are four major power producerWAPDA (Water & Power Development Authority)KESC (Karachi Electric Supply Company)IPPs (Independent Power Producers)

PAEC (Pakistan Atomic Energy Commission)

SECTOR OVERVIEW


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SECTOR OVERVIEWPakistans current installed capacity is estimated tobe 21,383MW (thermal, hydel and nuclear)However, after accounting for lower availablecapacities and inefficiencies arising from circular debtissue, the total generation capability is estimated tobe at 16,000MWMoreover, seasonal availability of hydel sources of

generation reduces the overall capacity to 13,000MWduring winter monthsDemand has grown at an annual average of 6%

(BMA RESEARCH:JAN,20 2012)


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NISHAT CHUNIAN POWER

Nishat Chunian Power Limited (NCPL) is a public limitedcompany incorporated in February 2007. It is listed on both

Karachi and Lahore Stock Exchanges.The Company is established as a power generation projecthaving gross capacity of 200 Mega Watts under a 25 year

take or pay agreement with National Transmission & Dispatch Company Limited (NTDCL).

Build, own, operate and maintain a fuel fired combined cyclepower plant based on Reciprocating Engine Technologyhaving gross capacity of 200MW in Kasur, Lahore


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COMPANY AGREEMENTS

As per the Power Purchase Agreement ("PPA"), theNational Transmission & Dispatch Company Limited

(NTDCL) has contracted to purchase a total netgeneration capacity of 195.722MW produced byNCPL for a period of 25 years Energy payments arerequired to be made on the basis of electricitysupplied whereas Capacity payments are to bemade on the basis of availability of the plant. Thecompany is required to maintain annual availabilityof up to 88%.


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Financial Analysis


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NISHAT SHARE VOLUME TREND


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NISHAT SHARE PRICE TREND


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KAPCO

KAPCO is first largest independent power

plant(IPP).KAPCO was built by the Pakistan Water and PowerDevelopment Authority ("WAPDA") in five phasesbetween 1985 and 1996 at its present location inKot Addu.In April 2005 KAPCO was formally listed on all thethree Stock Exchanges of Pakistan.


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MATERIAL AGREEMENTS

The PPA is between WAPDA and KAPCO.PPA determines the tariff structure and principles of operating the Power Plant.The GSA is between Sui Northern Gas PipelinesLimited ("SNGPL") and KAPCO, the GSA guarantees acertain quantity of gas deliveries during off peak months from SNGPL.The OSA is between KAPCO and Pakistan State OilCompany Limited ("PSO"). The OSA covers thesupply to KAPCO of fuel, diesel, oil, greases,lubricants and additives for the requirement of the

Power Plant.


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Financial analysis


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KAPCO SHARE PRICE TREND


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HUBCO


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Introduction

The HUBCO was incorporated in Pakistan on august1,1991 as a public limited company under thecompany ordinance, 1984.The share of company are listed on the Karachi,Lahore, and Islamabad stock exchanges and itsGlobal Depository Receipts are listed on theLuxembourg stock exchangeThe principal activities of the company are todevelop, own, operate and maintain power stations.


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Introduction

The Company owns an oil-fired power station with aninstalled net capacity of 1,200 MWHub Power plant is one of the most efficient oil firedthermal plant and can provide 10+% of countrys electricity demand.HUBC is setting an additional 225MW thermal powerplant at Narowal along with a 75% controlling stakein84MW Laraib power project


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FINANCIAL ANALYSIS


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HUBCO SHARE VOLUME TREND


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HUBCO SHARE PRICE TREND


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POWER SECTOR CAPITALGAIN/LOSS

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