ISLAMABAD: Pakistan’s largest Independent Power Producer (IPP), Hub Power Company Limited (HUBCO), reported a profit of Rs20.31 billion for the quarter ending September 30, 2024, reflecting an impressive 11% increase despite a dip in revenue.
In a notice to the Pakistan Stock Exchange (PSX) on Wednesday, HUBCO revealed that its consolidated profit was Rs18.32 billion during the same period last year.
Earnings per share (EPS) rose to Rs14.74 this quarter, compared to Rs13.17 in the same timeframe last year.
The company’s revenue from customer contracts decreased by 5% to Rs32.04 billion in 1QFY25, down from Rs33.73 billion the previous year.
Notably, HUBCO’s cost of revenue fell nearly 18% to Rs13.99 billion in 1QFY25, compared to Rs16.99 billion in the prior year, resulting in an 8% increase in gross profit to Rs18.05 billion. This gives the company a gross profit margin of 56% for the quarter, up from 49% last year.
Additionally, HUBCO’s other income surged by over 265% to Rs1.03 billion in 1QFY25, a significant increase from Rs280.8 million the previous year.
The power producer’s profit from operations for the quarter reached Rs18.4 billion, an 11% increase. The cost of finance also declined to Rs5.5 billion, a reduction of nearly 23%.
However, HUBCO’s share of profits from associates and ventures decreased by over 14% to Rs10.3 billion year-on-year. The profit before taxation was reported at Rs23.3 billion, reflecting an 8% increase, while tax payments fell by 7% to Rs2.98 billion.
Earlier this month, HUBCO entered into a negotiated settlement agreement with the government following the termination of a prior agreement concerning its 1292 MW power generation project in District Lasbella, Balochistan.
