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Friday March 29, 2024

Hub Power’s Q1 profit rises 22pc

By Our Correspondent
April 29, 2020

KARACHI: Hub Power Company Limited on Tuesday announced its profit increased 22 percent to Rs7.389 billion for the quarter ended March 31, 2020, translating into EPS (earning per share) of Rs5.55.

The power producer had earned Rs3.328 billion (EPS: Rs2.64) in the same period earlier.

Analysts at brokerage Arif Habib said during 3QFY20, Hub Power’s net sales witnessed a decline of 12 percent YoY to Rs11,820 million, due to lower dispatches. “Sales also fell 18 percent YoY in 9MFY20, due to the same reason mentioned above”. Due to lower demand of electricity and availability of relative cheaper source of power (coal and hydel), the load factor of fuel oil-based plants remained very low, the brokerage said in a research note.

The report said power company’s gross margins during 3QFY20 increased 19pps YoY to 63 percent due to 10.5 percent rupee depreciation coupled with lower load factor.

The company recognised a share of profit form CPHGC of Rs3,807 million (Rs2.93/share) during 3QFY20, which was the main reason boosting the company’s profitability, the brokerage said.