Hub Power posts 31% decline in 9MFY25 profit

KARACHI: Hub Power Company Ltd (HUBC) reported a net profit of Rs34.2 billion (EPS: Rs26.4) for the nine months ended March 31, 2025 (9MFY25), reflecting a 31 per cent year-on-year (YoY) decline.

According to Arif Habib Limited, the fall in earnings was primarily driven by the termination of the power purchase agreement (PPA) for the Hub base plant.In 3QFY25, earnings dropped 36 per cent YoY to Rs8.5/share. However, earnings rebounded 162 per cent quarter-on-quarter (QoQ), aided by the absence of a one-off provision of Rs2.6 billion booked in 2QFY25 due to a trade debt write-off at the Narowal plant.

Net sales fell 32 per cent YoY in 9MFY25 and 46 per cent YoY in 3QFY25, reflecting the impact of the Hub plant’s closure. Other expenses surged to Rs3.6 billion in 9MFY25 -- a tenfold increase -- primarily due to the Narowal provision.

Share of profit from associates declined 13 per cent YoY to Rs30.4 billion, mainly due to lower earnings from Prime International. Meanwhile, finance costs fell 40 per cent YoY to Rs12.5 billion on the back of lower interest rates and reduced short-term borrowings. The 3QFY25 effective tax rate stood at 20.1 per cent.