Corporate results: Hubco profits ease, healthy payouts continue
Hubco declared a payout of Rs3 per share, taking the full year payout to Rs5.5 per share in financial year 2011.
KARACHI:
Hub Power Company (Hubco), one of the country’s largest independent power producers, saw its profits fall two per cent to Rs5.42 billion on higher financial charges in fiscal 2011, according to its unconsolidated results.
Increase in financial charges by 78% to Rs3.38 billion restricted earnings growth of the power producer, analysts said.
The company declared a higher than expected payout of Rs3 per share, taking the full year payout to Rs5.5 per share in financial year 2011. A higher than expected payout tells that the company has relatively been shielded from the circular debt issue as it can leverage its position by passing it on to Pakistan State Oil, said IGI Securities analyst Sana Abdullah.
Even after the commercial operations of Narowal expansion, which does not enjoy flexible terms on fuel supply agreement, the company has announced a better payout than the previous financial year, added Abdullah.
However, sales rose by 23 per cent to Rs123 billion in the period under review compared with Rs99.7 billion in the preceding year.
Moreover, the company’s consolidated earnings – rose 1.4 per cent to Rs4.81 per share – include profit of Rs0.12 per share from its subsidiary Laraib Energy, though the 84MW hydel plant which is expected to come online by June 2012, according to Topline Securities. Hub Power Company has the largest market capitalisation of any private company in the country and has 17,000 Pakistani and International shareholders, according to the company’s official website.
Published in The Express Tribune, September 9th, 2011.
Hub Power Company (Hubco), one of the country’s largest independent power producers, saw its profits fall two per cent to Rs5.42 billion on higher financial charges in fiscal 2011, according to its unconsolidated results.
Increase in financial charges by 78% to Rs3.38 billion restricted earnings growth of the power producer, analysts said.
The company declared a higher than expected payout of Rs3 per share, taking the full year payout to Rs5.5 per share in financial year 2011. A higher than expected payout tells that the company has relatively been shielded from the circular debt issue as it can leverage its position by passing it on to Pakistan State Oil, said IGI Securities analyst Sana Abdullah.
Even after the commercial operations of Narowal expansion, which does not enjoy flexible terms on fuel supply agreement, the company has announced a better payout than the previous financial year, added Abdullah.
However, sales rose by 23 per cent to Rs123 billion in the period under review compared with Rs99.7 billion in the preceding year.
Moreover, the company’s consolidated earnings – rose 1.4 per cent to Rs4.81 per share – include profit of Rs0.12 per share from its subsidiary Laraib Energy, though the 84MW hydel plant which is expected to come online by June 2012, according to Topline Securities. Hub Power Company has the largest market capitalisation of any private company in the country and has 17,000 Pakistani and International shareholders, according to the company’s official website.
Published in The Express Tribune, September 9th, 2011.