Hubco’s net profit soars 110% at Rs62b
Hub Power Company (Hubco)’s net consolidated profit soared almost 110% to Rs62 billion in the year ended June 30, 2023 primarily due to increase in sales and a jump in share of profits from associates and joint ventures.
The company earned Rs29.58 billion in the previous year, according to the profit or loss account sent to the Pakistan Stock Exchange (PSX) on Tuesday.
Hubco’s board of directors recommended a final cash dividend of Rs6 per share. It was in addition to the interim dividends of Rs24 per share already paid during the year.
Sales (turnover) of the company improved to Rs114.26 billion in financial year 2022-23 compared to Rs97.16 billion in the prior year.
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Electricity sales went up, led by higher furnace oil prices. However, power dispatches fell by 9% year-on-year.
The share of profit from associates and joint ventures jumped almost four times to Rs34.32 billion in the year under review compared to Rs9.23 billion in the previous year, giving a major boost to the company’s bottom line.
AHL Research, in its post-result commentary, said “the rise in the share of profit is due to a claim for property damage and business interruption of a total amount of $65 million and the addition of Eni business.”
However, finance cost rose 144% during FY23 to Rs19.3 billion owing to higher interest rates.
In the fourth quarter (April-June) alone, the company posted an after-tax profit of Rs23.9 billion (earnings per share – Rs18.43), up by 241% compared to Rs7 billion (EPS: Rs5.41) during 4QFY22.
However, finance cost increased by 196% to Rs7.5 billion during the quarter. Net sales in April-June 2023 inched up by 1% to Rs32.3 billion due to the addition of TEL but electricity dispatches went down by 11% year-on-year.
In the quarter under review, the share of profit from associates and joint ventures came in at Rs14.8 billion compared to Rs4.2 billion during 4QFY22. “The rise is also supported by 36% rupee depreciation,” the research house said.
Published in The Express Tribune, September 13th, 2023.
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