Pakgen Power : TRANSMISSION OF QUARTERLY REPORT FOR THE 1ST QUARTER ENDED MARCH 31, 2025

PAKGEN POWER LIMITED

N I S H A T

STOCKEXC/ April 30, 2025

The General Manager, Pakistan Stock Exchange Ltd, Stock Exchange Building, Stock Exchange Road, KARACHI.

SUB: TRANSMISSION OF OUARTERLY REPORT FOR THE PERIOD ENDED 31.03.2025

Dear Sir,

We have to inform you the Quarterly Report of Pakgen Power Limited for the period ended March 31, 2025 have been transmitted through PUCARS and is also available on Company's website.

You may please inform the TRE Certificate Holders of the Exchange accordingly. Thanking you,

Yours truly,

KHALID MA MO CHOHAN COMPANY S R TO

HEAD OFFICE REGISTERED OFFICE POWER STATIONS

: 1•B, AZtZ AVENUE, CAMAL BANK, GULBERG V, LAHORE. TEL: +S2•4245717090•S6, 35717159•63, FAX: 9242•35717239 Website: pakgenpower.com E•MAIL: [e-mail]

: NISHAT HOUSE, 53/A, LAWRENCE ROAD, LAHORETEL: 111•113-333 FAX: +92•42•363674t4

: LALPiR THERMAL POWER STATIONS, P.O. BOX NO. 89, NUZAFFARGARH. PC•3d200, PAKISTAN. TEL: +92•66•2300030 FAX: +92•66•2300260 pakenpower.com

PAKGEN POWER LIMITED

FIRST QUARTERLY

Report 20

FOR THE PERIOD ENDED MARCH 31,

25

PAKGEN POWER LIMITED

TENTS

02 Company Profile

04 Directors' Report

07 Directors' Report (Urdu)

10 Statement of Financial Position

1. Statement of Profit or Loss and Other Comprehensive Income

   CTAOBLE NOF

2. Statement of Changes in Equity

3. Statement of Cash Flows

4. Notes to the Financial Statements

1st Quarterly Report 2025

COMPANY PROFILE

THE COMPANY

Pakgen Power Limited ("the Company") was incorporated in Pakistan on 22 June 1995 under the repealed Companies Ordinance, 1984 now the Companies Act, 2017. The registered office is situated at 53-A, Lawrence Road, Lahore. The principal activities of the Company are to own, operate and maintain an oil fired power station ("the Complex") having gross capacity of 365 MW in Mehmood Kot, Muzaffargarh, Punjab, Pakistan.

BOARD OF DIRECTORS

Mrs. Sadia Younas Mansha

Mr. Muhammad Ali Zeb Chairman Mr. Samir Mustapha Chinoy

Mr. Sheikh Muhammad Shakeel Mr. Farrukh Ifzal

Mr. Ghazanfar Hussain Mirza Mr. Omer Zubair Khan

CHIEF EXECUTIVE OFFICER

Mian Hassan Mansha

AUDIT COMMITTEE

Mr. Farrukh Ifzal

Mr. Sheikh Muhammad Shakeel Chairman Mr. Muhammad Ali Zeb

HUMAN RESOURCE & REMUNERATION(HR &R) COMMITTEE

Mr. Samir Mustapha Chinoy Chairman Mian Hassan Mansha

Mr. Ghazanfar Hussain Mirza

AUDITOR OF THE COMPANY

Riaz Ahmad & Co. Chartered Accountants

REGISTERED OFFICE

53-A, Lawrence Road, Lahore-Pakistan UAN:[phone]

[phone]

CHIEF FINANCIAL OFFICER

Mr. Tanvir Khalid

COMPANY SECRETARY

Mr. Khalid Mahmood Chohan

BANKERS OF THE COMPANY

Habib Bank Limited The Bank of Punjab Silk Bank Limited United Bank Limited Allied Bank Limited

National Bank of Pakistan Bank Alfalah Limited Faysal Bank Limited Askari Bank Limited

Habib Metropolitan Bank Limited MCB Bank Limited

Bank Islamic Pakistan Limited Bank Al-Habib Limited

Al Baraka Bank (Pakistan) Limited

LEGAL ADVISOR OF THE COMPANY

Mr. M. Aurangzeb Khan Advocate High Court

HEAD OFFICE

1. B, Aziz Avenue, Gulberg-V, Lahore-Pakistan

   Tel: [phone]

   Fax: [phone]

   SHARE REGISTRAR

   CDC Share Registrar Services Limited CDC House,99-B, Block-B, S.M.C.H.S

   Shahra-e-Faisal, Karachi - 74400 Tel: [phone]

   Fax: [phone]

   PLANT

   Mehmood Kot, Muzaffargarh, Punjab - Pakistan.

   1st Quarterly Report 2025

   DIRECTORS' REPORT

   The Directors of Pakgen Power Limited ("the Company") are pleased to present their report together with the Condensed Interim Financial Information for the first quarter ended March 31, 2025.

   During the year ended December 31, 2024, the Federal Government (GOP) notified a Task Force to negotiate the early termination of Company's Implementation Agreement ("IA"), Power Purchase Agreement ("PPA") and the Guarantee ("Guarantee"), collectively referred to as "Agreements". Although, these Agreements were scheduled to expire on October 07, 2028 however, the Task Force desired the early termination with effect from January 31, 2025.

   Accordingly, the terms given by Task Force were placed before the Board of Directors in its meeting held on December 10, 2024 and the Board of Directors placed the matter of early termination and the terms thereof for approval of shareholders. During the period, on January 27, 2025, shareholders of the Company in their Extra Ordinary General Meeting approved early termination of the PPA as proposed by the Task Force. Consequently, the Agreements stand terminated with effect from 31 January 2025. For further details, please see note 1.2 of the annexed condensed interim financial statements.

   We report that during the period under review and uptil PPA termination date, the power plant dispatched 5,938.6 MWh electricity to Central Power Purchasing Agency (Guarantee) Limited ("CPPA-G") as compared with 58,182 MWh dispatched during the corresponding period of the previous financial year.

   OPERATIONAL FINANCIAL RESULTS:

   The financial results of the Company for period ended March 31, 2025 are as follows:

   Financial Highlights

   PERIOD ENDED

   March 31,

   2025

March 31,

2024

Revenue (Rs '000')	925,405	5,152,733
Gross profit (Rs '000')	145,108	1,700,117
After tax profit (Rs '000')	37,402	1,853,499
Earnings per share (Rs)	0.10	4.98

The Company has posted after tax profit of Rs 37.402 million as against Rs 1,853.499 million earned in the comparative period. The net profits of the Company demonstrated the Earning per Share of Rs 0.10 per share as against Rs 4.98 per share earned in the comparable previous period.

The Company remains in a sound financial position and has sufficient liquidity and reserves to meet its plant preservation expenditures and discharge its liabilities for the foreseeable future. As on March 31, 2025, the Company's investments in Mutual Funds and cash and bank stand at Rs. 18,704 Million, which are primarily held to meet day to day expenditure keeping in view that the Company shall participate in the Competitive Trading Bilateral Contracts Market (CTBCM)

PAKGEN POWER LIMITED

once it is implemented by the Government of Pakistan (GoP), which will allow the Company to sell electricity as a Merchant Plant to Bulk Consumers / Distribution Companies (DISCOs) through wheeling arrangements.

As explained in Note 1.2 to the financial statements, the Company has taken several cost reduction measures, including but not limited to rationalization of workers and employees through Voluntary Severance Scheme (VSS) and reduction / optimization of plant maintenance costs, to mitigate the financial impacts arising due to termination of the Agreements, consequently, the Power Plant is being kept in preservation mode to ensure that the Power Plant is readily available if the offtake of electricity is required in near future. The Company is fully determined to explore other avenues of income generation including establishment of new businesses, which are under discussions, using funds available with the Company and the same will be placed before the shareholders of the Company for formal approval after the recommendation by the Board of Directors of the Company.

COMPOSITION OF BOARD:

Total number of Directors:
(a) Male	7
(b) Female	1
Composition:
(i) Independent Directors	2
(ii) Other Non-executive Directors	5
(iii) Executive Director (Chief Executive Officer)	1

COMMITTEES OF THE BOARD:

Audit Committee of the Board:

Sr. # Name of Members

1. Mr. Sheikh Muhammad Shakeel (Chairman)

2. Mr. Farrukh Ifzal (Member)

3. Mr. Muhmmad Ali Zeb (Member)

Human Resource & Remuneration (HR&R) Committee:

Sr. # Name of Members

1. Mr. Samir Mustapha Chinoy (Member/Chairman)

2. Mian Hassan Mansha (Member)

3. Mr. Ghazanfar Hussain Mirza (Member)

1st Quarterly Report 2025

DIRECTORS' REMUNERATION:

The company does not pay remuneration to its non-executive directors including independent directors except for meeting fee. Aggregate amount of remuneration paid to executive and non-executive directors have been disclosed in Note 9 of the annexed financial statements.

APPROPRIATIONS:

The Board of Directors has announced 1st Interim Cash Dividend at the rate of PKR 2/- per share for the three-month period ended March 31, 2025.

ACKNOWLEDGEMENT:

The board appreciates the management for establishing a modern and motivating working climate and promoting high levels of performance in all areas of the power plant. We also take this opportunity to thank our executives and staff members for their consistent support, hard-work and commitment for delivering remarkable, under extra ordinary circumstances.

For and on behalf of the Board of Directors

Mian Hassan Mansha Mr. Ghazanfar Hussain Mirza

Chief Executive Officer Director

Lahore: 29 April 2025

PAKGEN POWER LIMITED

5,152,733	925,405
1,7£D,117	145,108
1,853,499	37,402
4.98	0.10

1st Quarterly Report 2025

PAKGEN POWER LIMITED

1st Quarterly Report 2025

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2025 (UN-AUDITED)

Note EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES Authorized share capital 400,000,000 (31 December 2024: 400,000,000) ordinary shares of Rupees 10 each		Un-audited 31 March 2025 (Rupees in 4,000,000		Audited 31 December 2024 thousand) 4,000,000
Issued, subscribed and paid-up share capital 372,081,591 (31 December 2024: 372,081,591)
ordinary shares of Rupees 10 each		3,720,816		3,720,816
Capital reserve		116,959		116,959
Revenue reserve - un-appropriated profit		22,794,780		22,757,378
Total equity		26,632,555		26,595,153
LIABILITIES
NON-CURRENT LIABILITIES
CURRENT LIABILITIES
Trade and other payables		423,929		572,234
Accrued mark-up / profit		-		10,502
Taxation and levy - net		30,867		41,082
Unclaimed dividend		130,556		130,615
		585,352		754,433
Total liabilities		585,352		754,433
CONTINGENCIES AND COMMITMENTS	4
TOTAL EQUITY AND LIABILITIES		27,217,907		27,349,586

The annexed notes form an integral part of these condensed interim financial statements.

CHIEF EXECUTIVE

PAKGEN POWER LIMITED

Note ASSETS NON-CURRENT ASSETS Fixed assets 5 Long-term loans to employees Long-term security deposit Employee benefit - gratuity	Un-audited 31 March 2025 (Rupees in 2,765,647 17,764 1,774 19,822		Audited 31 December 2024 thousand) 2,998,120 18,982 1,774 19,822
CURRENT ASSETS	2,805,007		3,038,698
Stores, spare parts and other consumables	666,028		647,068
Fuel stock	1,359,947		2,486,106
Trade debts	964,252		11,514,884
Loans, advances and short-term prepayments	1,460,318		804,976
Other receivables	1,245,457		2,128,564
Accrued interest	12,297		2,961
Short term investment	7,748,436		6,626,325
Cash and bank balances	10,956,165		100,004
	24,412,900		24,310,888
TOTAL ASSETS	27,217,907		27,349,586

DIRECTOR CHIEF FINANCIAL OFFICER

1st Quarterly Report 2025

11

CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the Quarter Ended 31 March 2025 (Un-audited)

REVENUE FROM CONTRACT WITH CUSTOMER

Note

Quarter Ended

31 March 31 March

2025 2024

(Rupees in thousand)

925,405 5,152,733

COST OF SALES	6	(780,297)		(3,452,616)
GROSS PROFIT		145,108		1,700,117
PLANT MAINTENANCE AND PRESERVATION COSTS	7	(217,207)		-
ADMINISTRATIVE EXPENSES		(69,005)		(82,247)
OTHER EXPENSES		(1,324)		(1,554)
OTHER INCOME		208,284		314,269
PROFIT FROM OPERATIONS		65,856		1,930,585
FINANCE COST		(116)		(14,322)
PROFIT BEFORE TAXATION		65,740		1,916,263
TAXATION		(28,338)		(62,764)
PROFIT AFTER TAXATION		37,402		1,853,499
OTHER COMPREHENSIVE INCOME		-		-
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD		37,402		1,853,499

EARNINGS PER SHARE - BASIC AND DILUTED (RUPEES) 0.10 4.98

The annexed notes form an integral part of these condensed interim financial statements.

CHIEF EXECUTIVE

DIRECTOR

CHIEF FINANCIAL OFFICER

PAKGEN POWER LIMITED

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY

For the Quarter Ended 31 March 2025 (Un-audited)

SHARE CAPITAL	RESERVES		TOTAL EQUITY
	Capital	Revenue
	Retained payments reserve	Un-appropriated profit

( - - - - - - - - - -Rupees in thousand )

Balance as at 31 December 2023 - audited	3,720,816	116,959	20,849,904	24,687,679
Profit for the quarter ended 31 March 2024	-	-	1,853,499	1,853,499
Other Comprehensive income for the quarter
ended 31 March 2024	-	-	-	-
Total comprehensive income for the quarter ended 31 March 2024	-	-	1,853,499	1,853,499
Balance as at 31 March 2024- un-audited	3,720,816	116,959	22,703,403	26,541,178
Balance as at 31 December 2024 audited	3,720,816	116,959	22,757,378	26,595,153
Profit for the quarter ended 31 March 2025	-	-	37,402	37,402
Other Comprehensive income for the quarter
ended 31 March 2025	-	-	-	-
Total comprehensive income for the quarter ended 31 March 2025	-	-	37,402	37,402
Balance as at 31 March 2025 - un-audited	3,720,816	116,959	22,794,780	26,632,555

The annexed notes form an integral part of these condensed interim financial statements.

CHIEF EXECUTIVE

DIRECTOR

CHIEF FINANCIAL OFFICER

1st Quarterly Report 2025

CONDENSED INTERIM STATEMENT OF CASH FLOWS

For the Quarter Ended 31 March 2025 (Un-audited)

31 March	31 March
2025	2024
(Rupees in	thousand)
11,834,400	(196,389)
(10,618)	(14,728)
1,218	(8,425)
(38,553)	(18,566)
11,786,447	(238,108)
-	(1,616)
(3,306,711)	(165,823,295)
2,184,600	163,789,298
191,884	314,315
(930,227)	(1,721,298)
(59)	(107)
(59)	(107)
10,856,161	(1,959,513)
100,004	(1,615,222)
10,956,165	(3,574,735)
10,956,165	205,223
-	(3,779,958)
10,956,165	(3,574,735)

Quarter Ended

Note

CASH FLOWS FROM OPERATING ACTIVITIES

Cash generated from / (used in) Operations 8

Finance cost paid

Net decrease / (increase) in long term loans to employees Income tax paid

Net cash generated from / (used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES

Capital expenditure on fixed assets Short term investments made

Proceeds from disposal of short term investments Interest received

Net cash used in investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Dividend paid

Net cash used in financing activities

Net increase / (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of the period Cash and cash equivalents at end of the period

CASH AND CASH EQUIVALENTS

Cash and bank balances Short-term borrowings

The annexed notes form an integral part of these condensed interim financial statements.

CHIEF EXECUTIVE

DIRECTOR

CHIEF FINANCIAL OFFICER

PAKGEN POWER LIMITED

SELECTED NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

For the Quarter Ended 31 March 2025 (Un-audited)

1. THE COMPANY AND ITS OPERATIONS

   1. Pakgen Power Limited ("the Company") was incorporated in Pakistan on 22 June 1995 under the repealed Companies Ordinance, 1984 (now Companies Act, 2017). The registered office of the Company is situated at 53-A, Lawrence Road, Lahore. Head office of the Company is situated at 1-B, Aziz Avenue, Canal Road, Gulberg V, Lahore. The ordinary shares of the Company are listed on Pakistan Stock Exchange Limited. The principal activities of the Company are to own, operate and maintain a fuel fired power station ("the Complex") having gross capacity of 365 MW in Mehmood Kot, Muzaffargarh, Punjab, Pakistan. The Company had a Power Purchase Agreement (PPA) with its sole customer, Central Power Purchasing Agency (Guarantee) Limited (CPPA-G)

      / (Power Purchaser) for 30 years which commenced from 01 February 1998. As per the terms of PPA amendment agreement dated 20 April 2021, the agreement year that ended on 04 May 2021 was extended by 156 days to 07 October 2021.

   2. Impact on going concern assumption due to early termination of PPA

      The PPA of the Company was initially for a term of 30 years and was scheduled to expire on 07 October 2028. However, during the year ended 31 December 2024, the Company entered into negotiations with the National Task Force on Structural Reforms (Task Force) constituted by the Prime Minister of Pakistan. After several round of discussions with the Task Force, the Company consented the early termination of existing PPA with the Power Purchaser with effect from 31 January 2025 ("effective date"). The Company also consented the early termination of Implementation Agreement (IA) entered into with the President of Islamic Republic of Pakistan and Guarantee issued by the President of Islamic Republic of Pakistan, for and on behalf of the Government of Pakistan (GoP) with effect from 31 January 2025. For details, please refer to note 1.2 to the annual audited financial statements of the Company for the year ended 31 December 2024. As a result, the Agreements stand terminated with effect from 31 January 2025 and the Company has received Rs 10.9 billion from Power Purchaser as per the agreed terms and the remainder amount of Rs 964 million is to be received by April 30, 2025.

      The termination of PPA indicates the existence of material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern and, therefore, it may be unable to realize its assets and discharge its liabilities in the normal course of business. However, the Company believes that it will be able to continue as a going concern, based on the following points:

      • There is no impediment in the ability of the Company to generate electricity, subject to certain regulatory and formal legal formalities;

      • The management of the Company shall participate in the Competitive Trading Bilateral Contracts Market (CTBCM) once it is implemented by the Government of Pakistan (GoP), which will allow the Company to sell electricity as a Merchant Plant to Bulk Consumers / Distribution Companies (DISCOs) through wheeling arrangements;

      • The Company has taken several cost reduction measures, including but not limited to rationalization of workers and employees through Voluntary Severance Scheme (VSS) and reduction / optimization of plant maintenance costs, to mitigate the financial impacts

        1st Quarterly Report 2025

        arising due to termination of the Agreements;

      • The Company has Rupees 18,704.409 million surplus funds available as on 31 March 2025 which are invested in mutual funds and cash and bank balances to generate sufficient income to support the operations of the Company;

      • The Company has Rupees 964 million receivable as on 31 March 2025 from the Power Purchaser which is due to be received by 30 April 2025 pursuant to the terms agreed in Negotiation Settlement Agreement;

      • The management of the Company is fully determined to explore other avenues of income generation including establishment of new businesses, which are under discussions, using funds available with the Company and the same will be placed before the shareholders of the Company for formal approval after the recommendation by the Board of Directors of the Company.

      Notwithstanding, as elaborated above, the Company has sound financial position and as per the management's forecasts, the Company has enough liquidity and reserves to meet the operational expenditures and discharge its liabilities for the foreseeable future. Therefore, the management is confident that the Company will continue as a going concern in the foreseeable future. Thus, these condensed interim financial statements have been prepared on a going concern basis and consequently, do not require adjustment relating to the realization of its assets and liquidation of liabilities.

      The management has also assessed the accounting implications of the aforementioned developments in relation to the impairment of tangible fixed assets under IAS 36 'Impairment of Assets'. However, according to management's assessment, there is no impact of impairment on these condensed interim financial statements.

2. BASIS OF PREPARATION

   1. These condensed interim financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of:

      • International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017; and

      • Provisions of and directives issued under the Companies Act, 2017.

      Where the provisions of and directives issued under the Companies Act, 2017 differ with the requirements of IAS 34, the provisions of and directives issued under the Companies Act, 2017 have been followed.

   2. These condensed interim financial statements do not include all the information and disclosures required in annual financial statements and should be read in conjunction with the annual audited financial statements of the Company for the year ended 31 December 2024. These condensed interim financial statements are un-audited and are being submitted to the shareholders as required by Section 237 of the Companies Act, 2017.

      PAKGEN POWER LIMITED

3. ACCOUNTING POLICIES

   The accounting policies and methods of computations adopted for the preparation of these condensed interim financial statements are same as applied in the preparation of the preceding audited annual published financial statements of the Company for the year ended 31 December 2024.

   1. Critical accounting estimates and judgments

      The preparation of these condensed interim financial statements in conformity with approved accounting standards requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company's accounting policies. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

      During preparation of these condensed interim financial statements, the significant judgments made by the management in applying the Company's accounting policies and key sources of estimation and uncertainty were the same as those that applied in the preceding audited annual published financial statements of the Company for the year ended 31 December 2024.

4. CONTINGENCIES AND COMMITMENTS

   1. Contingencies

      There is no significant change in the status of contingencies as disclosed in the preceding audited annual published financial statements of the Company for the year ended 31 December 2024.

   2. Commitments

      1. Commitments in respect of other than capital expenditure

5. FIXED ASSETS

Operating fixed assets (Note 5.1) Capital work-in-progress

Un-audited Audited

31 March 31 December

2025 2024

-

2,765,647 -

2,765,647

(Rupees in thousand)

34,133

3,863,831

6,096

3,869,927

1st Quarterly Report 2025

Un-audited Audited

31 March 31 December

2025 2024

(Rupees in thousand)

5.1 Operating fixed assets Opening book value Add: Cost of additions during the period / year (Note 5.1.1) Less: Book value of deletion during the period / year (Note 5.1.2) Less: Depreciation charged during the period / year	2,998,120 -(632) (231,841)	3,863,831 54,837 -(920,548)
Closing book value	2,765,647	2,998,120
5.1.1 Cost of additions
Buildings on freehold land	-	10,825
Plant and machinery	-	23,033
Vehicles	-	11,800
Office equipment	-	7,701
Furniture and fittings	-	741
Electric equipment and appliances	-	737
	-	54,837
5.1.2 Book value of deletions
Cost	(1,543)	(8,141)
Less: Accumulated depreciation	911	8,141
	(632)	-

Quarter Ended

31 March 31 March

2025 2024

(Rupees in thousand)

6.	COST OF SALES
	Fuel consumed	240,527	2,627,977
	Operation and maintenance costs	82,939	217,118
	Insurance	380,793	380,793
	Depreciation	76,038	226,728
		780,297	3,452,616

PAKGEN POWER LIMITED

18