Orient Power Company operates a 229 MW (Gross ISO) Combined Cycle dual-fuel thermal power plant located in Balloki, District Kasur. Developed on a Build-Own-Operate (BOO) basis, the plant achieved its Commercial Operation Date (COD) in May 2010. It primarily runs on natural gas / Re-gasified Liquid Natural Gas(RLNG) , with high-speed diesel as a backup fuel, and uses GE 6FA gas turbines and a steam turbine for efficient power generation. Electricity is supplied to the national grid under a long-term Power Purchase Agreement.

OPCOL’s key source of earnings is the generation tariff received from its sole power purchaser, the Central Power Purchasing Agency Guarantee Limited (CPPA-G).The reference tariff, as determined by NEPRA, consists of two components: a capacity charge and an energy charge. The capacity charge, based on the plant’s dependable capacity, guarantees a minimum revenue stream that covers fixed O&M costs, insurance, working capital funding, and return on equity. The levelized tariff is PKR 2.3044 per kWh on natural gas and PKR 2.3541 per kWh on high-speed diesel for the period April–June 2025.

Pursuant to the Master Agreement dated February 11, 2021, OPCOL revised its Return on Equity (ROE) structure. The ROE on the local equity portion (29%) was increased from 15% to 17%, without dollar indexation. For the foreign equity portion (71%), the ROE was reduced from 15% to 12%, while retaining dollar indexation.

Orient Power Company (Private) Limited (OPCOL) is owned by a diverse group of sponsors, with O.Q.S.A.O.C. holding the largest stake at 42.8%, followed by Mr. Nadeem Babar with 22.81%, Mahmood Textile Mills Ltd. with 11.07%, Grindlewald FZE with 8%, Pak Oman Investment Company holding 5.43%, and Whistler Enterprises (Pvt.) Limited with 9.9%. This ownership structure combines strategic, financial, and industry expertise to support the company’s operations and long-term growth.

The ownership of OPCOL is considered stable due to the strong and diversified background of its sponsors. The shareholders have established presence across various key sectors including oil and gas, aluminum, power generation, and the food industry.

OPCOL’s sponsors possess strong business expertise, with particular emphasis on the contributions of Mr. Nadeem Babar, who brings extensive experience in project development, industry-specific operations, and strategic planning. His deep understanding of the energy sector, coupled with the broader business capabilities of the sponsor group, underpins the company’s effective decision-making, operational efficiency, and long-term strategic direction.

The financial strength of OPCOL is considered strong, supported by well-diversified and profitable businesses owned by its sponsors. Their presence across various sectors ensures a solid financial backing for the company. Additionally, the sovereign guarantee provided by the Government of Pakistan under the Power Purchase Agreement further reinforces OPCOL’s creditworthiness and financial stability, ensuring timely payments and enhancing investor confidence

OPCOL is governed by a seven-member Board of Directors, including the Chief Executive Officer. The board composition reflects the company’s diverse ownership, with three nominees from O.Q.S.A.O.C., one representative each from Mahmood Textile Mills Ltd. and Grindlewald FZE, and Mr. Nadeem Babar serving as a director. The CEO serves as a deemed director by virtue of their executive role. This structure ensures balanced representation and strategic oversight from key stakeholders.

The Board of Directors of OPCOL includes highly experienced professionals from diverse backgrounds. Mr. Salim Marhoun Hamad Al Hashmi, Ms. Maryam Al-Barashadi, and Mr. Nauman Ansari represent O.Q.S.A.O.C. and bring extensive experience in international energy, strategic planning, and financial oversight. Mr. Nadeem Babar, a key figure in Pakistan’s energy sector, offers deep expertise in energy policy and project development. Mr. Kashif Bashir Rana, the company’s CEO and a Chartered Accountant, contributes strong financial and operational leadership, ensuring effective execution of the board’s strategic vision.

During 9MFY24, five board meetings were held. Despite the demanding schedules of the experienced board members, attendance remained satisfactory, reflecting their commitment to effective governance and strategic oversight.

To maintain financial transparency, OPCOL’s financial statements are audited by A.F. Fergusons & Co., a reputable audit firm. For the year ended June 2024, the auditors issued an unqualified opinion, confirming the fairness of the financial statements.

Orient Power Company maintains a lean and efficient management structure, enabling agile decision-making and operational effectiveness. The CEO is supported by a team of qualified and experienced professionals who oversee key functions including operations, finance, compliance, and engineering. This streamlined structure ensures clarity in roles, accountability, and a focused approach to achieving the company’s strategic and operational goals.

Orient Power Company is led by a seasoned management team with extensive industry experience. Mr. Kashif Bashir Rana, CEO, is a Chartered Accountant with 27 years of experience, primarily in the power sector. Mr. Asad Qamar, Chief Financial Officer (CFO), is also a Chartered Accountant, bringing 27 years of expertise in financial management and strategic planning. Plant operations are overseen by Mr. Fayyaz Karim, General Manager (Plant), a qualified electrical engineer with 35 years of experience in power sector operations and maintenance. This experienced team ensures strong leadership and efficient management across all areas of the company.

OPCOL’s management focuses on key strategic and supervisory functions, including finance, commercial affairs, legal matters, and technical oversight. The day-to-day operations and maintenance of the power plant are outsourced to General Electric (GE) under a long-term O&M contract.

OPCOL maintains a robust Management Information System (MIS) that supports effective monitoring of operations and facilitates coordination with the O&M operator. This system ensures transparency, timely reporting, and informed decision-making, enabling the management to maintain control over key operational and performance areas.

Orient Power key source of earnings is the revenue generated through sale of electricity to the power purchaser, CPPA-G. The Company receives the capacity payments, as long average annual availability is at least 90% and is available for dispatch by power purchaser to generate electricity. regardless of whether or not plant is dispatched by the power purchaser. Power Purchase Agreement (PPA) has been signed in 2006 for a term of 30 years from the date of COD.

The Company has entered into an Operation, Maintenance & Services Agreement with the consortium of GE Vernova International LLC (“GEVI”) and General Electric Energy Parts, Inc .The term of the O&M agreement is valid till December 2040.

Orient Power Company primarily relies on Gas/RLNG as its main fuel source under a supply agreement with SNGPL. To mitigate supply interruptions, the company has also secured backup fuel arrangements through agreements with multiple Oil Marketing Companies (OMCs) for the provision of High-Speed Diesel (HSD). The plant operates as a combined cycle facility, equipped with two General Electric gas turbines and a steam turbine from Skoda Power, which enhances fuel efficiency.

OPCOL maintains comprehensive insurance coverage to safeguard its operations and assets. This includes coverage for political violence amounting to PKR 14.75 billion, property damage at PKR 56.5 billion, and business interruption at PKR 7.4 billion. Additionally, the company holds insurance for public liability, product liability, and pollution, each valued at PKR 3 billion. This extensive coverage ensures financial protection against a wide range of operational and external risks.

In FY24, Pakistan’s total installed power generation capacity rose slightly to ~45,888 MW, up 0.3% from FY23, while actual power generation declined by 0.6% to ~15,662 MW. The average capacity factor stood at 34.1%, indicating underutilization of available capacity. Public sector plants contributed ~61.4% of total generation, while the private sector's share dropped to ~38.6% (FY23: 49%). CPPA-G remained the dominant off-taker, accounting for ~93% of total power generated, with K-Electric contributing ~7%, alongside additional imports from Iran.

OPCOL generated 297 GWh of electricity during 9MFY25 and 541 GWh in FY24, compared to 605 GWh in FY23,836GWH in FY22 , 623 GWh in FY21, and 338 GWh in FY20. The decline in generation is primarily attributable to reduced dispatch demand from the power purchaser, CPPA-G.

Under the Power Purchase Agreement, OPCOL is required to maintain a minimum plant availability of 90%. During the reporting period, the company successfully met this benchmark, demonstrating operational reliability and compliance with contractual performance standards.

OPCOL's project capital structure comprised 25% equity and 75% debt. The repayment tenor of the long-term project debt was ten (10) years with forty (40) consecutive quarterly payments, starting from March-2010. In March 2020 the company completely paid off its term project related debt.

As of end-March 2025, OPCOL’s total receivables stood at PKR 13,257 million (FY24: PKR 11,469mln, FY23: PKR 14,017, FY22: PKR 11,241mln) The persistent circular debt issue in the power sector continues to strain cash flows, compelling Independent Power Producers (IPPs) like OPCOL to rely on short-term borrowings to manage liquidity.

Company mainly meet its working capital requirements – procurement of gas/fuel and funding of overdue receivables – from a mix of internal cashflow generations and short-term borrowings. During 3QFY25, total working capital lines that are arranged to amount PKR 10,487mln (FY24: PKR 10,487mln, FY23: 8,387mln, FY22: PKR 7780mln) of which ~18% has been utilized. The cushion to borrow, in case the Company needs it, is ~82%. As at end Mar-25, total receivables of the Company stood at PKR 13,257 million (FY24: PKR 11,469mln, FY23: PKR 14,017, FY22: PKR 11,241mln). The rise in short-term borrowing is primarily driven by delays in payment from CPPA-G.

During the 3QFY25 the Company posted growth in FCFOs on back of strong revenues. FCFO stands at PKR 3,223mln (FY24: PKR 7,526mln, FY23: PKR 3,557mln, FY22: 3,392mln). Thus, during the same period, OPCOL has shown a debt coverage ratio [FCFO / Finance Cost+ CMLTD+ Excess STB], to 72.2x with increase from FY24 (FY24: 23.9x, FY23: 3.8x, FY22: 5.1x).

The Company has paid-off its long-term debt in March'2020 and has a short-term borrowing of PKR 1,928mln at 3QFY25 (FY24: PKR 1.294bln, FY23: PKR 4.010bln). The company’s gearing ratio was 9.2% at the end of March 2025, reflecting a capital structure comprised entirely of short-term debt.