Improves 4% YoY compared to Rs12b in previous year, cash dividend announced at Rs3 per share. PHOTO: FILE
KARACHI: Hub Power Company’s (Hubco) consolidated profit remained steady at Rs12.50 billion in the fiscal year ended June 30, as reduced finance and operating costs offset impact of lower revenue, according to a bourse filing on Wednesday.
The profit improved by 4% from Rs12 billion earned in the preceding year. Accordingly, the earnings per share amounted to Rs10.29 as compared to Rs9.57 in the previous year, the company said in a notification to Pakistan Stock Exchange.
The board of directors recommended final cash dividend at Rs3 per share. The entitlement will be paid to the shareholders whose names will appear in the register of members on October 7, 2016. This will be in addition to interim dividends already paid at Rs8 per share.
Hubco share price went up by Rs0.30 and closed at Rs123.70 with a turnover of 640,900 shares at the Exchange.
The finance cost declined by 27% to Rs4.13 billion in the year from Rs5.68 billion last year.
The operating costs reduced by 6.32 percentage points to 79.71% of turnover at Rs91.59 billion in the year under review. The costs were standing at 86.03% of the turnover at Rs137.83 billion last year.
“In FY16, turnover fell 34% year-on-year basis to Rs91.6 billion led by 32% decline in furnace oil prices (a raw material). Gross margins expanded 6.3 percentage points to 20.3% due to normalisation of operation and maintenance expense,” said Topline Securities analyst Hamza Raza in a post-result comment.
“Going forward, we expect value addition from coal based power plants being setup by Hubco (2X660MW) at existing Hub plant site) and investment in Sindh Engro Coal Mining Corporation as key catalysts to company’s earnings,” he said.
“Keys risks include lower than expected rupee devaluation, delay in upcoming projects, and circular debt pileup,” he added. The other income improved to Rs167.13 million from Rs129.39 million last year. It booked gains from associated firms at Rs61.87 million as compared to a loss of Rs569,000 in the previous year.
Published in The Express Tribune, August 25th, 2016.
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