Hub Power announces profit of Rs5.3b

Hub Power Company Limited announced a profit of Rs5.3 billion for the half year ended December 31, 2016, down by 4 per cent from Rs5.5 billion in the same period of the previous year, the company’s financial results revealed on Monday.

Earnings per share (EPS) declined to Rs4.4 as compared to Rs4.6 in the same quarter of the last year. The company announced a half year cash dividend of Rs1.5 per share i.e. 15 per share.

On the other hand, the company’s quarterly profit saw a decrease of 3.7 per cent (quarter on quarter) from last year’s Rs2.8 billion to this year’s Rs2.7 billion. This translates to Rs2.25 per share compared to Rs2.38 in the same quarter last year.

During the first half of fiscal year 2017, net revenue of the company declined by 4 per cent year on year to Rs48.22billion on account of relatively low electricity generation. Finance cost and administrative expenses remained in check with both decreasing by 5 per cent year on year and 4 per cent year on year, respectively.

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Analysts at Intermarket Securities say that the result was in line with their estimates.

Operating expenses witnessed an increment of 7 per cent year on year. Topline Securities attribute this to augmented repair and maintenance expenses due to the ongoing major overhauling at the Narowal Plant. However, cost savings through in house O&M activities by Hub Power Services Ltd. (HPSL) would have partially offset the increasing expense.

Load factor of FO based generation witnessed a mixed trend during the quarter where it remained lower for the base plant at 63 per cent (71 per cent in the second quarter of 2016) while Narowal witnessed an uptick in utilisation levels (69 per cent vs. 59 per cent in the same quarter of last year.

The share price of HUBC declined by 2 per cent to Rs133.75 from last day’s Rs136.53. A total 638,800 shares of the company were traded on the bourse by day end.

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