Oursun Pakistan Limited (the Company), established in May 2015, operates in accordance with the Renewable Energy Policy 2006. The Company has developed and operates a 50 MW solar power plant located in Gharo, District Thatta, Sindh, Pakistan.

Oursun elected to adopt the Upfront Tariff mechanism established by NEPRA for solar power projects. The Company benefits from a levelized generation tariff of PKR 12.6396 per kWh for a 25-year term commencing from its Commercial Operation Date (COD), subject to quarterly adjustments. For the quarter October–December 2025, the applicable tariff is PKR 29.9869 per kWh, compared to PKR 31.2792 per kWh during the same period in 2024.

The project's Return on Equity (ROE), as stipulated in the NEPRA-approved upfront tariff, is PKR 3.7430 per kWh.

Oursun’s shareholding structure is led by its majority sponsor, M/s Future Energy Partners, which holds a 72.5% stake. Roomi Enterprises (Pvt.) Ltd. maintains a 27.5% interest, with the remaining 0.0003% held by individual shareholders.

The Company’s operational and financial stability is anchored in the long-term Energy Purchase Agreement (EPA) executed with K-Electric Limited, under which all generated electricity is sold for a contractual period of 25 years.

The project sponsors possess considerable local and international expertise, demonstrated through a successful history of financing and managing multiple power plants that employ a range of commercially proven technologies.

The strong financial standing of the sponsors is expected to continue offering significant support and assurance to the project's ongoing stability and performance.

The Board of Directors of Oursun comprises three members: Mr. Mohammad Tahir, Mr. Mohammad Aamir, and Mr. Muhammad Anees. Future Energy Partners nominates two directors, and one is appointed by Roomi Enterprises (Pvt.) Ltd.

The Board members bring diversified experience in the development and operation of power plants. Each member is highly qualified and demonstrates strong leadership capabilities. Mr. Muhammad Anees serves as the representative of Roomi Enterprises (Pvt.) Ltd. on the Board.

The Board convenes quarterly and holds additional meetings as required to address pertinent matters. While no sub-committees have been formed, the Board maintains an active role in providing strategic oversight and guidance to the Company.

KPMG Taseer Hadi & Co. Chartered Accountants serves as the external auditor for the Company. The auditor issued an unqualified opinion on the financial statements for the year ended June 30, 2025.

Independent Power Producers typically adopt a lean organizational structure, focusing primarily on core finance and technical personnel, while key functions such as engineering, construction, and plant operations are managed through outsourced agreements.

Under the leadership of CEO Mr. Jamshed Afzal, the management team’s skills are sharply aligned with the needs of an IPP, ensuring financial discipline, maintaining regulatory compliance, and managing key relationships. A compact team with deep experience in project finance and power sector regulations handles the core responsibilities of financial operations, debt servicing, and engagement with NEPRA, AEDB, and K-Electric. This targeted capability set directly underpins the Company’s stable operational and financial track record.

The Company leverages a Global Business Management Solution platform to enhance operational efficiency across multiple functions. Furthermore, Oursun Pakistan’s IT infrastructure is robust, supporting a wide range of activities effectively and maintaining a satisfactory level of performance.

The Company utilizes an integrated Global Business Management Solution to optimize performance across various operational domains. Additionally, Oursun Pakistan maintains a reliable and scalable IT infrastructure, which adequately supports the scope and complexity of its business activities.

All electricity generated by the plant is sold to Karachi Electric (K-Electric) under a 25-year Energy Purchase Agreement. According to the EPA terms, the purchaser is contractually obligated to compensate for any non-project-related missed volumes, with payments calculated in accordance with the prevailing applicable tariff rates.

Oursun has an annual renewable Operations and Maintenance (O&M) contract with Everone Energy Operations (Pvt.) Limited. The agreement stipulates a standard response time of 12 non-sunlight hours for resolving equipment issues to minimize plant downtime. It also defines specific performance benchmarks and includes liquidated damages provisions should the actual performance ratio fall below the agreed standards.

Oursun is situated in Gharo, District Thatta, Sindh, a location with favorable solar irradiation. Solar energy generation primarily depends on two factors: irradiation and temperature. The Company's revenues and cash flows are subject to solar radiation risk, as seasonal variations in solar irradiation can impact electricity production, resulting in fluctuations in cash flows

The Company maintains comprehensive insurance coverage to mitigate risks associated with business interruption and other related operational damages.

Owing to newly installed capacity (particularly solar and wind) and shifting fuel economics, contributing to the changing generation landscape, Pakistan’s power generation mix is gradually transitioning toward renewable energy, with a long-term policy focus on reducing dependence on Furnace Oil and other high-cost non-renewable sources. However, thermal sources continue to dominate the current generation mix. As of September 2025, total generation reached 12,592 GWh, with the share comprising Hydel (38%), Thermal including coal, RLNG, gas, RFO, and HSD (40%), Nuclear (18%), Renewables, wind and solar (4%), and Others (less than 1%). Within the renewable segment, solar IPPs contributed approximately 1% of total generation, consistent with the longer-term trend observed in FY24.

Oursun Pakistan Limited has demonstrated steady operational performance, with energy generation for FY25 reaching 89,675 MWh, closely aligned with the 88,262 MWh recorded in FY24. The Company’s topline for FY25 amounted to PKR 2,807 million, compared to PKR 3,121 million in the prior year. In the first quarter of FY26, generation totaled 18,624 MWh, reflecting a slight decrease from the 19,004 MWh achieved in the corresponding quarter of the previous year (1QFY25).

The plant’s annual benchmark energy, as established under the tariff structure, is set at 78,840 MWh, corresponding to a benchmark capacity factor of 18%. During FY25, the plant consistently demonstrated robust operational performance, achieving an average capacity factor of 20% thereby exceeding the prescribed benchmark.

Debt financing constitutes 75% of the project cost, i.e., USD 46mln. The FCY facility between the United Bank UAE and Oursun is for USD 13mln, priced at daily SOFAR + CAS (previously 3M LIBOR) + 4.5%. The local debt facility is between the Bank of Punjab, United Bank Limited, Askari Bank Limited, and Oursun is for PKR 4,017mln (USD 21mln) at 3M KIBOR plus 3%, as per SBP REFF. The tenor is 10 years with quarterly debt repayments. The total outstanding debt as of September 30, 2025, is PKR 1.52bln from local banks and USD 4.92mln from the foreign bank. The Company has paid around 62% of its foreign loan and around 58% of its local loan.

As of June 30, 2025, total trade receivables of the Company stood at PKR 612 million (FY24: PKR 721 million), representing a decrease of 15%. By the end of September 2025, receivables further declined to PKR 506 million. Oursun maintains an escrow account agreement with K-Electric to secure these receivables. The Company is also required to maintain a Debt Service Reserve Account (DSRA) equivalent to two quarterly debt repayments under its financing agreements. This requirement is fulfilled through a combination of cash deposits and Standby Letters of Credit (SBLC) provided by the sponsors.

The Company effectively manages its working capital requirements, primarily comprising operational payments to the O&M contractor, through its strong internal cash generation, supported by timely receipts from the power purchaser, K-Electric. The Company’s liquidity position remains robust, with cash and bank balances standing at PKR 1.63 billion as of June 2025 (Sep-25: PKR 1.78 billion), comfortably covering short-term obligations. To date, the Company has not utilized any external working capital financing facilities, relying entirely on internally generated funds and sponsor-backed standby arrangements to meet its operational and reserve requirements.

The Free Cash Flow from Operations (FCFO) for 9MFY25 amounted to PKR 507 million, as reported in the financials for the period ended September 2025. This was supported by strong operational performance and improved profitability. For the full fiscal year ended June 30, 2025, FCFO stood at PKR 2,277 million (FY24: PKR 2,602 million). Consequently, the Company's debt service coverage improved significantly, with the EBITDA to Finance Cost ratio strengthening to 5.4x in 9MFY25 (FY24: 3.3x), reflecting a robust capacity to service its debt obligations on time.

The total project cost was USD 62 million, financed through a debt-to-equity mix of approximately 75:25. The Company's financial leverage has shown consistent improvement, with the leverage ratio declining to 32.4% as of September 2025 (33.9% as of June 2025), down from 40.7% in FY24. This strengthening capitalization profile is driven by the timely repayment of project debt, with approximately 60% of the total original debt already repaid as of September 2025. The Company maintains a conservative short-term borrowing policy and has neither utilized any short-term borrowing facilities to date, nor does it plan to utilize any in the medium term.