LAHORE: Pakgen Power Limited reported a loss after taxation of Rs100.34 million for the quarter ended March 31, 2026, compared with a profit of Rs37.40 million in the same quarter last year, according to the company’s unaudited financial results.

The company’s latest quarterly results show a significant decline in operating activity, with revenue from contracts with customers falling to nil during the quarter, compared with Rs925.41 million recorded in the corresponding period of 2025. As a result, gross profit also fell to nil from Rs145.11 million a year earlier.

Operating performance weakens

Pakgen Power incurred Rs251.40 million in plant maintenance and preservation costs during the quarter, up from Rs217.21 million in the same period last year. Administrative expenses, however, declined to Rs57.50 million from Rs69.01 million.

The company recorded other income of Rs231.10 million, compared with Rs208.28 million in the corresponding quarter of 2025. Despite this income, Pakgen Power posted an operating loss of Rs78.49 million, against an operating profit of Rs65.86 million last year.

Finance costs remained relatively low at Rs89,000, compared with Rs116,000 in the prior-year quarter. However, taxation of Rs21.76 million contributed to the final loss, taking the company’s loss after tax to Rs100.34 million.

Earnings per share turns negative

The deterioration in quarterly earnings was also reflected in Pakgen Power’s earnings per share. The company reported a basic and diluted loss per share of Rs0.52, compared with earnings per share of Rs0.10 in the first quarter of 2025.

Share buyback reduces equity

Pakgen Power’s balance sheet also reflects the impact of its purchase of its own shares for cancellation. The company’s own shares held for cancellation increased to Rs1.80 billion as of March 31, 2026, compared with Rs1.62 billion at December 31, 2025.

Total equity stood at Rs14.32 billion at the end of the quarter, down from Rs15.68 billion at the end of 2025. Unappropriated profit declined to Rs12.12 billion from Rs13.23 billion.

Cash position drops sharply

The company’s cash position also contracted considerably. Cash and bank balances stood at Rs87.10 million at March 31, 2026, compared with Rs26.42 million at the end of December 2025, although the figure was substantially below the Rs10.96 billion reported at March 31, 2025.

According to the cash flow statement, Pakgen generated Rs46.17 million in net cash from operating activities during the quarter. Investing activities generated net cash of Rs1.20 billion, while financing activities used Rs1.18 billion, largely reflecting the Rs1.18 billion payment for ordinary shares bought back.

No dividend announced

For the quarter ended March 31, 2026, Pakgen Power’s board recommended no cash dividend, bonus shares, right shares or other entitlement. The financial statements were described as unaudited.

Overall, Pakgen Power’s first-quarter performance reflects a sharp shift from the previous year, primarily marked by the absence of customer revenue and a move into an operating and net loss. The company’s financial position also reflects substantial share buyback activity during the quarter.