Altern Energy Faces Continued Losses as Power Demand Remains Weak
Altern Energy Limited has reported continued financial and operational challenges, with weak demand from its power off-taker and uncertainty surrounding its long-term power purchase arrangements weighing on the company’s performance.
According to the company’s report dated April 21, 2026, Altern Energy recorded a gross loss of Rs79 million during the period under review, compared with a gross loss of Rs70 million in the corresponding period of 2024. The company’s net loss after tax stood at Rs161 million, compared with a net loss of Rs84 million in the same period a year earlier.
At the consolidated level, the company reported a significantly larger loss attributable to equity holders of Rs1.488 billion, although this represented an improvement from the Rs4.370 billion loss recorded in the corresponding period of the previous year. The consolidated loss per share also improved to Rs4.09, compared with Rs12.03 previously.
Weak Power Demand Continues to Affect Operations
Altern Energy’s operational performance remained under pressure because of weak electricity demand from its off-taker. The company noted that its plant experienced no dispatch during the period under review, similar to the corresponding period of the previous fiscal year, due to the absence of dispatch demand from NPCC.
Despite the lack of dispatch, the company said scheduled and preventive maintenance activities were carried out in line with recommendations from the original equipment manufacturer. It reported that the plant’s engines and auxiliary equipment remained in working condition.
Power Purchase Agreement Under Review
A major issue facing Altern Energy is the future of its power purchase agreement with Central Power Purchasing Agency (Guarantee) Limited (CPPA). The company stated that its PPA operates on a take-and-pay basis and has faced serious challenges because of zero dispatch from the off-taker during recent years.
The company has been engaged in discussions concerning the early termination or retirement of its agreements with the Government. The report states that shareholders approved the proposal for early termination of the PPA, the Implementation Agreement and the Government Guarantee in April 2025.
Subsequently, Altern Energy submitted a request for early termination or retirement of its agreements with CPPA and Private Power and Infrastructure Board (PPIB). The company later initiated a termination agreement process, with the relevant agreements expected to be terminated through mutual consent of the parties.
Cash Position Also Comes Under Pressure
The company’s standalone cash-flow statement shows that net cash outflow from operating activities stood at Rs115.1 million, while dividend payments amounted to approximately Rs572.3 million during the period. Cash and cash equivalents declined from Rs815.6 million at the beginning of the period to approximately Rs134.98 million at the end.
On a consolidated basis, cash and cash equivalents stood at approximately Rs7.74 billion at the end of the period, compared with Rs9.13 billion at the beginning. The consolidated cash-flow statement also showed a net cash outflow from operating activities of about Rs1.37 billion.
Future Outlook
Altern Energy said the power sector continues to face significant changes following negotiations between the government and private-sector independent power producers. Tariff reductions and the termination of certain IPP agreements have altered the operating environment.
The company stated that its power purchase agreement has been affected by the challenge of fixed-cost payments despite zero dispatch from the off-taker during recent years. Following shareholder approval for early termination or retirement of its agreements with the government, the company said it would evaluate the future course of action after completion of the termination process.
For now, Altern Energy remains a going concern, with management continuing to navigate the company through the uncertainty surrounding its power agreements and the broader restructuring of Pakistan’s power sector.
Bottom line: Altern Energy’s latest results highlight the pressure created by prolonged zero dispatch and changes in Pakistan’s IPP framework. While the consolidated loss has narrowed substantially from the previous year, the company’s future remains closely tied to the outcome of its agreement-termination process and the direction of the country’s power market.
