HUBCO posts 17pc profit growth in Q2

KARACHI: Hub Power Company Ltd. (HUBCO), Pakistan’s largest independent power producer, on Wednesday reported a 17 percent increase in quarterly profit as it boosted its turnover and other income amid rising energy demand.

Net income rose to RS17.18 billion in the three months ended Dec. 31, from Rs14.68 billion a year earlier, the company said in a filing to the Pakistan Stock Exchange on Wednesday. Earnings per share climbed to Rs11.78 from Rs10.25.

The company, which has a combined installed power generation capacity of 3,581 megawatts, declared an interim cash dividend of Rs4 per share for the second quarter, in addition to Rs5 per share paid in the first quarter.

HUBCO’s turnover surged 19 percent to Rs29.91 billion in the second quarter, driven by higher electricity sales and fuel prices, compared to Rs25.09 billion recorded in the last year.

The company’s gross profit margin expanded to 56 percent from 51.3 percent a year ago, as its operating costs rose at a slower pace than its revenue. The gross profit of HUBCO increased by over 30 percent to Rs16.75 billion

The operating costs inched up nearly 8 percent to Rs13.16 billion in 2QFY24, compared to Rs12.23 billion in the same period a year ago.

The company also benefited from an 82 percent jump in other income, which reached Rs900.45 million in the second quarter, mainly due to higher interest income and exchange gains.

HUBCO’s finance cost increased 46 percent to Rs6.97 billion in the second quarter. The company’s effective tax rate was 15.7 percent, lower than 17.5 percent in the first quarter.

The company earned Rs10.56 billion as a share of profits from its associates and joint ventures in the second quarter, up 6 percent from a year ago. HUBCO operates in various business sectors including oil and gas, mining and industrial operations and maintenance services through its subsidiaries.