1HCY13 Results Review: PKGP and LPL fall short

PKGP posted a PAT of PKR 2.75/share for 1HCY13 and PKR 1.20/share for 2QCY13 which fell considerably short of both our expectations and the corresponding period last year. As expected the IPP made an interim payout of PKR 1/share. Rise in fuel cost during the quarter overwhelmed rise in topline, thus leading to contraction in the gross profit. Apropos of the above, we downgrade our full year PAT estimates for CY13 to PKR 6.47/share and Dec’13 target price to PKR 25.92.

LPL followed a similar pattern with underwhelming results for the quarter, PAT clocked in at PKR 1.62/share for 1HCY13 depicting a decline of 16% YoY whereas; 2QCY13 PAT stood flat at PKR 0.72/share. Lalpir Power also announced an interim payout of PKR 1/share.