High operating cost brings down Hubco profit by 13%
Board recommends interim cash dividend of Rs2 per share
PHOTO: HUBCO
KARACHI:
Hub Power Company Limited’s (Hubco) consolidated profit dropped 13% to Rs2.69 billion in the quarter ended March 31 mainly due to higher operating costs, according to a bourse filing on Thursday.
The power producer had registered a profit of Rs3.10 billion in the same quarter of previous year. Earnings per share fell to Rs2.21 in the Jan-Mar quarter from Rs2.62 in the corresponding quarter of last year.
The board of directors recommended an interim cash dividend of Rs2 per share. This was in addition to the dividend of Rs3 per share that had already been paid.
The new entitlement will be paid to those shareholders whose names appear in the register of books on June 5, 2017. Share price of the company eased 0.43%, or Rs0.57, at Rs130.66 with trading in 1.44 million shares at the Pakistan Stock Exchange (PSX).
Sales revenue rose 33% to Rs25.91 billion from Rs19.47 billion. However, a notable increase of 6.53 percentage points in operating costs to 83.54% (or Rs21.64 billion) of sales revenue from 77.01% (or Rs14.99 billion) in the corresponding period restricted the profit growth.
Topline Securities analyst Hashim Sohail said in a note to clients that sales revenue grew mainly due to higher furnace oil prices, up 44% in the current financial year on the back of rising international crude oil prices.
However, delay in recovery of overdue receivables put burden on the company’s liquidity, resulting in lower-than-expected pay-out in the Jan-Mar quarter.
Published in The Express Tribune, April 28th, 2017.
Hub Power Company Limited’s (Hubco) consolidated profit dropped 13% to Rs2.69 billion in the quarter ended March 31 mainly due to higher operating costs, according to a bourse filing on Thursday.
The power producer had registered a profit of Rs3.10 billion in the same quarter of previous year. Earnings per share fell to Rs2.21 in the Jan-Mar quarter from Rs2.62 in the corresponding quarter of last year.
The board of directors recommended an interim cash dividend of Rs2 per share. This was in addition to the dividend of Rs3 per share that had already been paid.
The new entitlement will be paid to those shareholders whose names appear in the register of books on June 5, 2017. Share price of the company eased 0.43%, or Rs0.57, at Rs130.66 with trading in 1.44 million shares at the Pakistan Stock Exchange (PSX).
Sales revenue rose 33% to Rs25.91 billion from Rs19.47 billion. However, a notable increase of 6.53 percentage points in operating costs to 83.54% (or Rs21.64 billion) of sales revenue from 77.01% (or Rs14.99 billion) in the corresponding period restricted the profit growth.
Topline Securities analyst Hashim Sohail said in a note to clients that sales revenue grew mainly due to higher furnace oil prices, up 44% in the current financial year on the back of rising international crude oil prices.
However, delay in recovery of overdue receivables put burden on the company’s liquidity, resulting in lower-than-expected pay-out in the Jan-Mar quarter.
Published in The Express Tribune, April 28th, 2017.