HUBC reports two-fold rise in net profits in FY20

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.

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