April 30, 2021 (MLN): Pakistan’s largest Independent Power Producer (IPP), the Hub Power Company Limited (HUBC) announced financial results for the period of 9MFY2021 today. The company posted consolidated net profits of Rs25.71billion with earning per share of Rs19.21 for the period ended March 31, 2021, which illustrated a growth of 36% as compared to the net profit of the same period last year (SPLY).
The surge in profit is mainly attributable to higher share of profit from an associate China Power Hub Generation Company Limited (CPHGC), depreciation of currency and lower financing costs.
During the period under review, the turnover of the company increased by 6% which stood at Rs38.81bn due to higher dispatches under taken. Given the decline in cost of sales and dollar indexation/PKR depreciation, the gross margins grew by 2ppts and clocked in at 62%.
Going by financial statement, the company gained profits of Rs11.68bn from associates, up by 30.38% YoY compared to the SPLY. On the financial front, the cost of finance went down by 39.52% YoY and stood at Rs5.66bn against Rs9.36bn recorded in the SPLY. The decline in financial cost is mainly due to lower interest rates.
On one hand, the company’s general and administrative expenses dipped by 7.58% whereas, non-core expenses surged by more than two-folds to stand at Rs298.6mn during the period under review.
On the tax front, the company witnessed effective tax rate of 11% compared to 3% in 9MFY20.
HUBC is striving to further improve its performance and explore new avenues for growth opportunities in energy and other areas of infrastructure.
In this regard, post submission of the proposal for a waste water recycling Project to the Government of Sindh (GoS) for industrial consumption, the Company received a conditional Right of First Refusal (ROFR) for the Project. This will be Public Private Partnership between the Company and GoS.
With respect to the coal conversion of two of its units at Hub Power Plant to supply power to K-Electric, the Company is in the process of obtaining requisite Government approvals for the Project, the company’s quarterly report highlighted.
|
Profit and Loss Account for the Nine months ended March 31st 2021 (Rupees in '000) |
|||
|---|---|---|---|
|
|
Mar-21 |
Mar-20 |
% Change |
|
Turnover |
38,814,608 |
36,473,262 |
6.42% |
|
Operating costs |
(14,796,126) |
(14,497,769) |
2.06% |
|
Gross Profit |
24,018,482 |
21,975,493 |
9.30% |
|
General and administration expenses |
(1,084,168) |
(1,173,038) |
-7.58% |
|
Other income |
235,492 |
297,315 |
-20.79% |
|
Other operating expenses |
(298,672) |
(123,413) |
142.01% |
|
Profit from operations |
22,871,134 |
20,976,357 |
9.03% |
|
Finance costs |
(5,658,687) |
(9,356,587) |
-39.52% |
|
Share of profit from associates and joint venture- net |
11,682,692 |
8,960,377 |
30.38% |
|
Loss on shares to be transferred to GoB |
– |
(1,009,029) |
– |
|
Profit before taxation |
28,895,139 |
19,571,118 |
47.64% |
|
Taxation |
(3,188,677) |
(670,869) |
375.31% |
|
Profit for the year |
25,706,462 |
18,900,249 |
36.01% |
|
Basic and diluted earnings per share – in Rupees |
19.21 |
14.07 |
36.53% |
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