HUBC reports two-fold rise in net profits in FY20

By MG News | August 19, 2020 at 12:24 PM GMT+05:00

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August 19, 2020 (MLN): Hub Power Company Limited (HUBC) has posted more than two-fold rise in net profits to Rs 26 billion (EPS: Rs 19.31) for the FY20 ended June 30, 2020 against net profits of Rs 11.93 billion of the corresponding period last year.

The massive increase in earnings seen in the financial results below is a result of higher profits from its associate – China Power Hub Generation Company (CPHGC) and PKR depreciation.

During the period under review, the company’s net sales dropped by 17% YoY compared to sales in the corresponding period last year due to shut down at HUBC's Base plant.

According to the research of Intermarket Securities, Narowal (wholly owned subsidiary) operated at a weak load factor of 9% during 4QFY20 vs. 24% in the same period last year, while Laraib (hydropower plant) operated at 78% during 4Q vs. 73% same period last year.

HUBC’s gross margins were impressive as it expanded from 37% to 63% on an account of higher PKR/USD indexation and penal income cash receipts.

Meanwhile, the company gained profits of Rs 13.7 billion from associates (CPHGC) which offset a 61% YoY increase in higher finance cost.

Profit and Loss Account for the year ended June 30th, 2020 (Rupees in '000)
	Jun-20	Jun-19	% Change
Turnover	48,321,335	58,349,317	-17.19%
Operating costs	(17,830,929)	(36,860,465)	-51.63%
Gross Profit	30,490,406	21,488,852	41.89%
General and administration expenses	(1,499,790)	(1,605,994)	-6.61%
Other income	410,289	526,966	-22.14%
Other operating expenses	(181,347)	(127,688)	42.02%
Profit from operations	29,219,558	20,282,136	44.07%
Finance costs	(11,905,155)	(7,401,123)	60.86%
Share of gain/loss from associates	13,700,361	(433,984)	-
Loss on shares to be transferred to GoB	(1,009,029)	-	-
Profit before taxation	30,005,735	12,447,029	141.07%
Taxation	(3,944,865)	(516,722)	663.44%
Profit for the year	26,060,870	11,930,307	118.44%
Basic and diluted earnings per share - in Rupees	19.31	9.37	106.08%

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