Pakistan’s largest non-state electricity producer Kot Addu Power has recorded a 13% decline in first quarter profits due to delayed payments from the government.

Net income for Q1 fell to US $16.02m (PKR 1.34bn) from US $20m (PKR 1.54bn) for the same period last year.

Revenue dropped to US $244m (PKR 20.3bn) from US $270m (PKR2 2.5bn), according to Bloomberg.

Kot Addu has borrowed an additional amount to compensate for the cash shortfall triggered by the delayed government payments for electricity purchased from the company.

Loan costs increased to US $14.7m (PKR 1.22bn) in Q1 from US$ 13.7m (PKR 1.14bn) in the previous year.

Kot Addu runs a 1,600MW plant that uses furnace oil, diesel and natural gas to produce electricity, which is then sold to the state-run Water & Power Development Authority.