Hubco’s Jul-Sep profit amounts to Rs2.65b

Earnings down 2% from last year due to squeezed turnover

KARACHI: Hub Power Company Limited’s (Hubco) consolidated profit dropped 2% to Rs2.65 billion in the quarter ended September 30, 2016 owing to squeezed turnover, according to a bourse filing Wednesday. This translated into earnings per share (EPS) of Rs2.13.

The company had earned a profit after tax of Rs2.70 billion in the same quarter last year, translating into an EPS of Rs2.20.

The board of directors recommended an interim cash dividend of Rs1.50 per share. The entitlement will be paid to the shareholders whose names will appear in the register of members on December 2, 2016.

The share price of the power generation firm fell 2.68%, or Rs3.01, and closed at Rs109.18 with a volume of 3.12 million shares.

Amreen Soorani, an analyst at JS Global Research, said in a post-result comment that earnings came below market consensus on higher-than-expected operating costs during the quarter.

The profit and loss accounts of the firm stated that the operating cost declined 12% to Rs19.81 billion in the quarter from Rs22.50 billion in the corresponding period.

Turnover fell 11% to Rs23.87 billion from Rs26.96 billion in the same quarter last year, the accounts added.

Finance costs trimmed to Rs1 billion from Rs1.06 billion in the quarter in 2015.

The firm booked a loss of Rs43.28 million from its associated firms against a nominal profit of Rs0.25 million in the corresponding period. 

Published in The Express Tribune, October 27^th, 2016.

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