Power Cement Ltd's Company Secretary, Salman Gogan, informed Pakistan Stock Exchange (PSX) that in the wake of rising inflationary pressures, high-interest rates and depressed local demand, the company has finalised an arrangement with a local syndicate of banks to re-profile its outstanding long-term obligations of PKR11.9bn (US$41.8m).
The local syndicate of banks, in respect of their long-term debt, has favourably agreed on the following salient terms: four biannual principal repayments due from July 2023 to January 2025 have been agreed to be reduced from PKR1.19bn to PKR119m each. Two biannual principal repayments falling due in July 2025 and January 2026 have been agreed to be reduced from PKR1.19bn to PKR298m each.The remaining principal amount of PKR10.8bn has been agreed to be paid in eight equal biannual instalments of PKR1.35bn each (from July 2026 to January 2030).
Abstract from 9MFY22-23 financial report
Higher borrowing costs prevalent in the country have been burdening the company significantly. Power Cement reported a profit after tax of PKR133m for the current year's third quarter compared to a loss after tax of PKR273m in the corresponding quarter of last year. For the nine-month period, the net profit is PKR553m as compared to a profit of PKR7m in the same period last year.
Power Cement Ltd operates a cement plant in Nooriabad Industrial Area, Kalo Kohar District Jamshoroo, Sindh. With output at 1.529Mt in the 9MFY22-23, the facility's overall capacity utilisation for the nine months stood at 68 per cent compared to 60 per cent in the corresponding period.
