B+ Weekly Analysis 2015

• Pakistan's first local coal‐fired project of 660MW to be established by SECMC has reportedly achieved financial close with the help of federal government
• KEL are expected to finalize a revised PPA and GSA during the second round of talks to be held on September 7, 2015
• Amreli Steels Limited is all set to launch its IPO in mid‐September and hopes to raise PKR3.37bn for the expansion. 74 mn shares will be offered; 75% of which will be offered to institutions and high net‐worth individuals and the rest to general public 
• PPL has made another hydrocarbon discovery at its exploration well Fazl X‐I located in Hala block.
• Gas prices revised upward, POL products' prices slashed
• Gas distribution companies comes out as a winner where both gas utilities SSGC and SNGP remain upbeat during the week
• Gas tariff hike in the range of 10%‐63% for the industrial sector acted as a major dampener during the week particularly for the fertilizer sector, though some support came through subsequent urea price increase (+PkR159/bag)
• Ministry of Power & Natural Resources reducing fuel prices by PkR3.0/ltr
• CPI for Aug’15 reading at 1.72%YoY vs. 1.8%YoY in Jul’15
• GoP borrowing PkR 187.9 billion through MTB auction where cut‐off yields remained unchanged
• Expectations of GoP and K‐Electric to finalize a revised Power Purchase Agreement (PPA) and Gas Supply Agreement (GSA) during the second round of talks to be held on Sep 07’15