Karachi Electric's full-year net loss narrows 3.7pc
Tuesday, 8 September 2009
KARACHI,Sept. 7 (Bloomberg): Karachi Electric Supply Co., the supplier of power to Pakistan's largest city, posted a full-year net loss that narrowed 3.7 per cent.
The utility lost 15.5 billion rupees ($186.9 million), or 1.18 rupees a share, in the year ended June 30 compared with 16.1 billion rupees, or 1.22 rupees, a year earlier, Karachi Electric said in a statement to the stock exchange recently. Revenue rose to 58.1 billion rupees from 49.6 billion rupees.
The government allowed the company to raise tariffs by 25 per cent during the year, which led to higher revenue, said Khalid Iqbal Siddiqui, head of research at Invest & Finance Securities Ltd. in Karachi. "The company has to reduce transmission losses and theft to improve in real terms."
Karachi Electric loses as much as one-third of its revenue because of outdated meter-reading equipment, power theft and defunct transformers, according to the company.
The utility's shares, which have risen 41 per cent this year, rose 2 per cent, to 3.07 rupees as of 9:09 a.m. local time on the Karachi Stock Exchange.
The utility lost 15.5 billion rupees ($186.9 million), or 1.18 rupees a share, in the year ended June 30 compared with 16.1 billion rupees, or 1.22 rupees, a year earlier, Karachi Electric said in a statement to the stock exchange recently. Revenue rose to 58.1 billion rupees from 49.6 billion rupees.
The government allowed the company to raise tariffs by 25 per cent during the year, which led to higher revenue, said Khalid Iqbal Siddiqui, head of research at Invest & Finance Securities Ltd. in Karachi. "The company has to reduce transmission losses and theft to improve in real terms."
Karachi Electric loses as much as one-third of its revenue because of outdated meter-reading equipment, power theft and defunct transformers, according to the company.
The utility's shares, which have risen 41 per cent this year, rose 2 per cent, to 3.07 rupees as of 9:09 a.m. local time on the Karachi Stock Exchange.