Nishat Power Limited (NPL): Earning Review – By Foundation Research

<ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Nishat Power Limited (NPL) profitability clocked in at Rs1,159mn (EPS Rs3.3), up 27% YoY.</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We attribute rise in profitability to higher (1) dollar indexation, (2) principal charge in tariff and (3) O&amp;M savings.</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">During 2QFY20, dollar indexation went up by ~26% YoY for the company, as per NEPRA notification.</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We have an &ldquo;Outperform&rdquo; stance on the scrip as we believe lower FO prices due to IMO restrictions would increase ranking of the company in generation merit order list in the lon...