Lalpir Power (PSX:LPL) terminated its agreement with the Pakistan government in October 2024 and plans to enter the electricity market (CTBCM) to sell power as a merchant plant. With Rs. 9,774 million in surplus funds, it aims to explore new business opportunities, subject to board and shareholder approval.
"..As stated in detail in the financial statements of the Company for the year ended 31 December 2024, after the early termination of the Implementation Agreement (IA) entered into with the President of the Islamic Republic of Pakistan and the Guarantee issued by the President of the Islamic Republic of Pakistan, for and on behalf of the Government of Pakistan (GoP), with effect from 01 October 2024, the management of the Company shall participate in the Competitive Trading Bilateral Contract Market (CTBCM) once it is implemented by the GoP. This will allow the Company to sell electricity as a Merchant Plant and to Bulk Consumers/Distribution Companies (DISCOs) through wheeling arrangements.
The Company has Rupees 9,774 million surplus funds available as of 31 December 2024, which are invested in mutual funds, cash, and bank balances as of 31 December 2024. The Company is fully determined to explore other avenues of income generation, including the establishment of new businesses, which are under discussion. These initiatives will utilize the funds available with the Company and will be presented to the shareholders for formal approval after recommendation by the Board of Directors of the Company."
Summary:
The company terminated its agreement with the Pakistan government in October 2024 and plans to enter the electricity market (CTBCM) to sell power as a merchant plant. With Rs. 9,774 million in surplus funds, it aims to explore new business opportunities, subject to board and shareholder approval.