K.ELECTRIC that their performance is not up

K.ELECTRIC PERFORMANCE AFTER PRIVITIZATION:

Analysis shows that after Abraaj group owned K.Electric
its performance has been increased as we see before in 2009. There are number
of reasons of the better performance.The consumer service is much better now as
compared to before, there were many problems of payment of a bill but now, on
website people of Karachi can easily check and download their bills and they
can also pay their bills online. K.Electric has also launched various campaigns
to save energy including seminars for awareness of sustainable energy
technology. The management and services are now much better than old K.E.S.C
and they are working hard to overcome the problem of load shedding as well.

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ANALYSIS OF K.ELECTRIC ON PSX:

K.Electric is the only company in Pakistan who is
serving all three stages (generation, transmission, distribution) of
electricity to the largest city of Pakistan or the industrial hub. Recently
when Karachi, Lahore and Islamabad stock exchange were working separately K.Electric
was listed on all these stock exchanges but now all three stock exchanges
become one and named as PSX (Pakistan Stock Exchange). K.Electric is listed in
PSX and here is some information of K.Electric regarding their performance on
100 INDEX.

Table 1.

RATING

OUTPERFORM*

PRICE (11TH MAY,17 Rs)

7.79

TARGET PRICE (Rs)

10.50

MKT cap (Rs mn)

214,846.20

NUMBER OF SHARES (MN)

27,615.19

52-WEEK PRICE RANGE

7.09 – 10.92

 

 

Source:
Reuters

K.Electric one year high is Rs 10.92 and low is
Rs 7.09 and analysis shows that their performance is not up to the mark on PSX
but they are making profits and finally K.Electric has switched towards profit
making. According to the article of Express Tribune on Oct 17, 2015 K.Electric
profit rises to Rs.28b. Here is the chart of share price performance of
K.Electric.

 

Chart: Share Price Performance

Source:
Reuters

 

ANNUAL REPORT OF 2015 PERFORMANCE:

K.Electric last published annual report 2015
shows their performance. Here are some accomplishments of K.Electric:

v  K.Electric added 1,037 MW to
generation capacity.

v  According to their annual report,
around 58 – 60% Karachi exempted from load shedding.

v  K.Electric built new grid stations
around 12 and they rehabilitated the old grid stations as well.

v  K.Electric invested USD 1.2 billion on
transmission, generation and distribution infrastructure.

v  K.Electric established 28 business centers
to provide 24/7 customer service.

v  K.Electric added around 768 MVA to transmission
capacity.

 

GRAPHICAL ANALYSIS:

Graphical analysis of k electric. Here is the
revenue graph published in the annual report of K.Electric in 2015.

 

Graph 1: Revenue Graph

Source: K.E Annual Report
2015

 

The graph shows that the
revenues of K.Electric is continuously increasing on every year. Here is the graph
of net/ loss profit of K.Electric pulished in the annual report 2015.

 

Graph 2: Net/ loss Profit Graph

Source: K.E Annual Report 2015

The net profit of K.Electric was increased during
the year (2012 – 2015). The analysis shows that K.Eletric is trying to overcome
the problems and they are working hard i.e.: there revenues and profits are
increasing annually.

 

SPEAK- UP CAMPAIGN:

What is speak- up campaign? K.Electric has come
up with the innovative idea for its consumers where all consumers will be able
to complaint about the electricity thefts in their area. They can call, fax,
email for complaint. The aim of this campaign was to stop the illegal
activities of electricity theft in Karachi. On every complaint K.Electric did a
strict action towards those thefts. Every citizen of Karachi has a
responsibility to complaint about these thefts if they can see anywhere and K.Electric
also take responsibility to not reveal the name of that person who complaints
about the theft. In this campaign K.Electric is able to over- come the load
shedding in different areas. According to the resources, in the first year of
2009 when this campaign was started only 9 complaints were registered due to
the lack of confidence in the people of Karachi. But since 2009 there were
21,541 complaints were registered of electricity thefts and K.Electric
investigated all these complaints ae well. Here is table of resolved cases
during the year (2009 – 2014) published in THE-NEWS-KE-SUPPLEMENT.

 

Table 2:

Source:THE-NEWS-KE-SUPPLEMENT

 

 

 

K.ELECTRIC PROVIDING FREE ELECTRICITY:

K.Electric is providing free electricity to 23
major educational institutes and hospitals in Karachi. Here are some of the
names in list of those hospital and educational institutes:

v  Indus Hospital

v  Karwan –e- Hayat

v  SIUT (Sindh Institute of Urology and
Transplant)

v  TCF (The Citizen Foundation)

v  The Kidney Centre

v  Behbud Association

v  Bait ul Sukoon

v  LDH (Lad Dufferin Hospital)

v  MALC (Marie Adelaide Leprosy Centre)

It shows that K.Electric, a monopoly is doing
good work for the well-being of society.

 

SHAHGHAI ELECTRIC POWER (SEP)DEAL:

On Oct 31, 2016 the Abraaj Group who owns K.Electric,
has 66.4 per cent total share along with the management announced that they have
reached an agreement to separate its stake in K.Electric.

K.Electric deal with Shanghai Electric Power
(SEP) a company in China, a
state-owned enterprise controlled by China’s State Power Investment Corporation
and also listed on Shanghai Stock Exchange. Shanghai Electric is bringing
investment of 9 billion dollarsinK.Electric. This is one of the greatest
news not only for K.Electric but for the all people of Karachi because many
economists said that this might bring bigger change in the performance of K.Electric
and it might be possible as well that they will be able to completely over-come
the load shedding in Karachi. This deal is of the major achievement of K.Electric.

 

K.ELECTRIC BRINGS CLIMATE CHANGE POLICY:

K.Electric’s climate change policy is to make effort and to achieve
environment sustainability. K.Electric’s aim is to make policies to diminish
the environmental footmark. For this, they wanted to reduce greenhouse emission
in their existing infrastructure and due to change in technology they are
willing to increase their efficiencies. Also, K.Electric wanted to promote and
develop renewable energy infrastructure with international standards.

 

DIGITAL METERS AND INVESTMENT ON NEW TRANSFORMERS AND CABLES:

Within few years, K.Electric is replacing old meters by digital
meters. In digital meters electricity thefts are unable to do meter tampering
including taping as well. In this way the misuse of electricity is reduces at
certain level. K.Electric also put their heavy investments on changing cables
and new transformers as well. K.Electric did good workon new cables; the electricity
thefts will be unable to do illegal kunda connection.

 

NEGATIVE IMPACT OF K.ELECTRIC AS A MONOPOLIST IN
PAKISTAN:

 

LOAD SHEDDING:

Electricity is one of the basic necessities for every individual. But unfortunately
K.Electric provides every individual of Karachi a treat of s

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