HUBC registers robust growth on CPHGC project and PKR devaluation

By MG News | February 25, 2020 at 12:20 PM GMT+05:00

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February 25, 2020 (MLN): One of the largest Independent Power Producer pf Pakistan, Hub Power Company Ltd. (HUBC) has announced its financial results for the half-year ended December 31, 2020. As per results, the company has witnessed a robust growth of 102.23% in its net profits, standing at Rs 11.51 billion which translated into an EPS of Rs 8.52.

The rise in HUBC’s consolidated earnings was mainly attributable to the commencement of China Power Hub Generation Company (CPHGC) and PKR depreciation against USD.

During the period under review, the company’s turnover dipped by 20.62% YoY compared to sales in the corresponding period last year on the back of lower off-take from Hub pant and Narowal Plant as both plants remained shut down from Oct 19 to Nov 19.

HUBC’s gross margins were impressive as it expanded from 30% to 59% on an account of growing PCE Element in the capacity payments of Hub plant during the last quarter.

More notably, the share of profit of associate clocked in at Rs 5.15 billion against the loss of Rs 193 million due to rising earnings from CPHGC.

On the other hand, the company bore a colossal increase in finance cost which stood at Rs 6.25 billion, up by 2.12 times YoY owing to higher interest rate and markup on long term loans acquired to finance new projects.

Profit and Loss Account for the Half-year Ended December 31st 2019 (Rupees in '000)
	Dec-19	Dec-18	% Change
Turnover	24,653,589	31,059,378	-20.62%
Operating costs	(10,182,031)	(21,648,514)	-52.97%
Gross Profit	14,471,558	9,410,864	53.78%
General and administration expenses	(830,000)	(675,629)	22.85%
Other income	160,115	224,888	-28.80%
Other operating expenses	(26,271)	(5,765)	355.70%
Profit from operations	13,775,402	8,954,358	53.84%
Finance costs	(6,251,021)	(2,935,597)	112.94%
Share of gain/loss from associates	5,153,226	(193,455)	-
Loss on shares to be transferred to GoB	(1,009,029)	-	-
Profit before taxation	11,668,578	5,825,306	100.31%
Taxation	(157,888)	(144,589)	9.20%
Profit for the year	11,510,690	5,680,717	102.63%
Basic and diluted earnings per share - in Rupees	8.52	4.51	88.91%

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