⚡ Flash Summary

K-Electric Limited (KEL) has announced a delay in the release of its FY 2024 financial statements and the postponement of its Annual General Meeting (AGM), previously scheduled for November 11, 2025. This decision stems from ongoing proceedings by the National Electric Power Regulatory Authority (NEPRA) that could significantly impact the company’s financial results. The company is unable to reliably estimate the outcome of these proceedings and their effect on the financial statements. KEL assures stakeholders that they will be kept informed of any developments, including the re-authorization for the issuance of financial statements and holding of the AGM.

📌 Key Takeaways

• 📅 AGM Postponed: KEL’s Annual General Meeting (AGM) initially set for November 11, 2025, is postponed due to NEPRA proceedings.
• 🚧 Regulatory Uncertainty: NEPRA’s ongoing proceedings create uncertainty regarding KEL’s financial outcomes.
• 📊 Financial Statement Delay: The release of FY 2024 financial statements is delayed until the NEPRA proceedings are resolved.
• ⚖️ NEPRA Review: NEPRA is reviewing multiple motions, including tariff determinations and write-off claims.
• 🗣️ Auditor Request: Auditors requested KEL’s management to represent the outcome and impact of NEPRA proceedings on FY24 financials.
• 🚫 Inability to Estimate: KEL cannot reliably estimate the outcome or financial impact of NEPRA proceedings.
• 📢 Prior Disclosure: This follows previous disclosures on September 23, 2025, regarding Board approval of FY 2024 statements.
• ⚡ Ministry of Energy Involvement: The Ministry of Energy (MoE) is involved in the reconsideration requests and review motions.
• 🤝 CPPA Involvement: Central Power Purchasing Agency (CPPA) is also involved in the review motions related to write-off claims.
• 🔄 Reconsideration Requests: Hearings conducted on maintainability of the reconsideration request filed by the MoE.
• 📶 Transmission and Distribution: Determinations related to Transmission and Distribution (Network) are also under review.
• 💧 Supply Tariff Review: The supply tariff determination dated May 27, 2025, is under review.
• 🔄 Continuous Updates: KEL promises to keep the Exchange and market participants updated on any developments.
• 🔒 Beyond Company Control: The circumstances causing the delay are beyond KEL’s control.

🎯 Investment Thesis

Given the uncertainty surrounding the financial impact of the NEPRA proceedings on K-Electric, a HOLD recommendation is appropriate. Until the regulatory issues are resolved and the audited financial statements for FY 2024 are released, it is difficult to make a definitive investment decision. Further clarity on the financial implications is needed to reassess the company’s prospects. A price target and time horizon will be determined once financial transparency is regained.