October 28, 2020 (MLN): Hub Power Company Limited (HUBCO) has made profits of Rs. 8.44 billion (EPS: 6.28) for the quarter ended September 30, 2020, which shows a growth of 46.4% as compared to the earnings of the same period last year. The company also announced an Interim Cash Dividend of Rs. 4 per share i.e. 40%.
The revenue of HUBC increased by 12% on account of partial invoicing of pending LPI invoices, as per Taurus Securities. The top-line income also benefitted from the revenue that came from the Narrowal and Laraib power plant, which in turn increased due to a higher load factor.
The rise in earnings can also be attributed to the share of profits from China Power Hub Generation Company Limited (CPHGC) and Sindh Engro Mining Company (SECMC). Further, higher dollar indexation, as well as higher spread over funding of receivables, added to the profitability.
According to Foundation Securities, the Hub power base plant dispatched only 37 GWh of electricity, at a mere utilization of 1% during the quarter. Hub Narowal plant dispatched 226 GWh of electricity, up by 15% YoY, and runs at a utilization rate of 48% YoY. The lower utilization has been attributed to the induction of cheaper fuel power plants into the generation mix amid a slowdown in electricity demand growth.
The finance costs went down by 38% due to a decline in the policy rate during the period.
Consolidated Financial Results for the quarter ended September 30, 2020 (Rupees'000) | |||
|---|---|---|---|
Sep-20 | Sep-19 | % Change | |
Net sales | 15,794,082 | 14,081,059 | 12.2% |
Operating costs | (7,654,849) | (6,589,672) | 16.2% |
Gross profit | 8,139,233 | 7,491,387 | 8.6% |
General and Administrative expenses | (386,061) | (448,814) | -14.0% |
Other income | 57,409 | 68,015 | -15.6% |
Other operating expenses | (12,654) | (22,566) | -43.9% |
Share of profit from associates | 3,482,171 | 1,873,084 | 85.9% |
Finance cost | (1,904,114) | (3,059,313) | -37.8% |
Profit before taxation | 9,375,984 | 5,901,793 | 58.9% |
Taxation | (934,682) | (78,305) | 1093.6% |
Profit after taxation | 8,441,302 | 5,823,488 | 45.0% |
Earnings per share | 6.28 | 4.29 | 46.4% |
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