KPCL stocks rise on contract extension

Stocks of Khulna Power Company Limited (KPCL) rose by around 1 per cent after news broke that the company secured a two-year extension of its power purchase agreement with the government.

The government allowed the extension of two contracts with KPCL to purchase power from the KPC Unit-II 115 megawatt plant in Khulna and KPC 40 megawatt Noapara plant in Jashore on the basis of no electricity, no payment, the company said in a disclosure yesterday.

There was huge criticism from analysts to extend power purchase agreements with rental power plants considering the high prices of their electricity.

On this perspective, the government extended some other power purchase agreement on the basis of no payment would be made if their supply is null.

KPCL got listed with the Dhaka Stock Exchange (DSE) in 2010. The company's paid-up capital stood at Tk 397 in 2021, when it distributed cash dividends of 12.5 per cent, according to DSE data.