April 28, 2020 (MLN): The Hub Power Company Limited (HUBC) has disclosed its financial and operational performance for the nine-month period ended on March 31, 2020, as per which the company reported around 2.1x (109.79% YoY) increase in net profits to Rs 18.9 billion, resulting in earnings per share of Rs 14.07, compared to Rs 9 billion and earnings per share of Rs 7.16 in the same period last year.
The increase in profits was mainly due to recognition of share of profits from associate (China Power Hub Generation Company Limited) which started commercial operation from August 2019. In addition to this 10.5%, PKR depreciation also helped the company to post a remarkable growth in the profitability.
During the 9MFY20, company’s revenue decreased by 18%YoY on the back of lower load factor experienced by both base plant as well as Narowal plant, however, Gross Margins of the company remained high during the period as it grew from 36% to 60%.
While the Finance cost of the company witnessed an upsurge of 89.6% YoY to Rs 9.35 billion as against Rs 4.93 billion in the corresponding period last year, accredited to higher debt financing for new projects as well as the higher working capital requirement for the existing projects.
Furthermore, due to the rising circular debt and delay in payments by Power Purchaser, the liquidity of the company remained severely constrained, restraining the company from declaring any dividends.
Profit and Loss Account for the Nine months ended March 31st, 2020 (Rupees in '000) | |||
|---|---|---|---|
| Mar-20 | Mar-19 | % Change |
Turnover | 36,473,262 | 44,498,275 | -18.03% |
Operating costs | (14,497,769) | (29,098,037) | -50.18% |
Gross Profit | 21,975,493 | 15,400,238 | 42.70% |
General and administration expenses | (1,173,038) | (1,080,243) | 8.59% |
Other income | 297,315 | 281,418 | 5.65% |
Other operating expenses | (123,413) | (51,645) | 138.96% |
Profit from operations | 20,976,357 | 14,549,768 | 44.17% |
Finance costs | (9,356,587) | (4,933,778) | 89.64% |
Share of gain/loss from associates | 8,960,377 | (321,321) | – |
Loss on shares to be transferred to GoB | (1,009,029) | – | – |
Profit before taxation | 19,571,118 | 9,294,669 | 110.56% |
Taxation | (670,869) | (285,338) | 135.11% |
Profit for the year | 18,900,249 | 9,009,331 | 109.79% |
Basic and diluted earnings per share – in Rupees | 14.07 | 7.16 | 96.51% |
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