Hubco’s annual profit flat at Rs11.7 billion

KARACHI: Profit of Hub Power Company Limited (Hubco) remained flat at Rs11.665 billion for the year ended June 30, translating into earnings per share (EPS) of Rs9.56, a bourse filing said on Monday.

Hubco earned Rs11.348 billion during the last financial year with EPS of Rs9.24, a statement to Pakistan Stock Exchange (PSX) said.

The company announced a final cash dividend of Rs2.80/share in addition to interim dividends of Rs4.60/share already paid. Analysts said annual profit remained flat owing to higher general and administrative expenses and increasing volume of financing cost. Hubco’s annual sales dropped two percent to Rs99.999 billion compared to Rs101 billion a year ago.

Brokerage BIPL Securities said sales fell primarily as a result of lower load factors experienced at the company’s base and Narowal plants.

In FY2018, general and administrative expenses increased 11 percent to Rs1.525 billion compared to Rs 1.365 billion in FY2017. Finance cost inched up to Rs4.432 billion from Rs 4.081 billion. The key risks the company is facing include lower than expected rupee devaluation, delay in commissioning of upcoming projects and growing circular debts.

Hascol’s half-year profit up 33pc

Profit of Hascol Petroleum Limited increased 33 percent to Rs1.028 billion for the six-month period ended June 30, translating into EPS of Rs7.10.

The company’s profit amounted to Rs771.423 million during the corresponding period a year earlier with EPS of Rs6.03. Hascol announced cash dividend of Rs3.50/share for the half year. The company’s sales sharply rose to Rs147.525 billion in January-June period from Rs94.553 billion during the corresponding period a year earlier.

Analyst Umair Naseer at Topline Securities said the company is facing key risks, including rise in pump prices and slowdown in sales growth, rupee depreciation and inability of the company to pass on the impact, volatility in oil prices and inventory losses, and growing competition.

Hascol announced earnings of Rs2.06/share during 2Q2018, down 26 percent year-on-year due to exchange losses on foreign payables amidst rupee devaluation. Total exchange losses clocked in at Rs1.9 billion during 1H2018.

The company reported 55 percent year-on-year growth in net revenues to Rs66 billion in the April-June period due to higher petrol and diesel prices and increase of around 19 percent in total volumetric sales.

Hascol’s finance cost increased 62 percent year-on-year to Rs241 million due to higher debt borrowing by the company coupled with higher interest rates.