⚡ Flash Summary

ALTRN Energy Limited’s (ALTN) corporate briefing presentation from November 2025 reveals a challenging situation. The company’s power generation has ceased from 2021-2025 due to reduced dispatch demand and unfavorable economic dispatch merit order. The company is seeking early termination of its agreements, including PPA, IA, and GoP Guarantee, following the termination of its subsidiary Rousch’s agreements in 2024. Financial highlights show a significant drop in revenue and net profit from 2019-2020 to 2024-2025, with the company reporting a net loss in 2022-23.

📌 Key Takeaways

• 📉 Zero power generation from 2021-2025 due to reduced dispatch demand.
• ❌ Termination of Rousch’s agreements in 2024.
• 📜 Seeking early termination of PPA, IA, and GoP Guarantee.
• 🔍 Board of Directors recommended termination in March 2025.
• ✅ Shareholders approved termination in April 2025.
• 📝 Application for termination submitted in May 2025.
• 💰 Revenue decreased significantly to 0 in 2023-2025 from Rs. 116.8 million in 2019-2020.
• 💔 Net profit turned negative in 2022-23 with a loss of Rs. (72.86) million compared to a profit of Rs. 1,689.62 million in 2019-2020.
• ⛽ Shift to RLNG operations in September 2017 due to declining local gas resources.
• 💲 Increase in RLNG prices due to Pak Rupee devaluation and rising international prices.
• 🏭 Plant capacity: 31.2 MW at ISO conditions.
• ⚙️ Plant technology: IC Engines – simple cycle.
• 🏢 Company structure: AEL (Public Listed) -> PMCL (Private) -> RPPL (Public Unlisted).
• 🤝 CPPA-G is the off-taker.
• 📅 Agreements scheduled to expire in 2032 but terminated early with effect from October 1, 2024.

🎯 Investment Thesis

Given the company’s cessation of operations, negative profitability, and ongoing efforts to terminate key agreements, a SELL recommendation is warranted. The company faces significant financial, operational, market, and regulatory risks. There is no clear path to recovery or future profitability. The price target should be significantly reduced to reflect the distressed state of the company. Investors should seek opportunities in more stable and profitable IPPs.