Hubco profit up 20.54pc in Q3

KARACHI: Hub Power Company (Hubco) has announced a net profit of Rs8.8 billion for the quarter ended March 31, 2021, up 20.54 percent from net profit of Rs7.38 billion recorded in the same period last year.

The earnings per share (EPS) for the quarter clocked in at Rs6.61 against EPS of Rs5.55 last year. The company did not announce any payout along with the corporate results.

“The increase in profit is mainly due to higher share of profit from an associate (China Power Hub Generation Company Limited, which started commercial operations on August 17, 2019), depreciation of rupee against USD and lower financing costs,” company noted.

Sales revenue for the period under review stood at Rs12.02 billion, up 1.77 percent from Rs11.81 billion last year. “During Q3FY21, net sales increased due to a 13 percent increase in dispatches to 187 GWh (Hub Plant: 0GWh, Narowal Plant: 91GWh, 20 percent load factor; Laraib: 96GWh, 53 percent load factor). During 9MFY21, sales also increased by 6.0 percent, again due to higher dispatches (+20 percent compared with last year),” an analyst at Arif Habib Limited said.

During Q3FY21, gross margins of the company increased by 4pps to 68 percent. The rise in margins is mainly attributable to rupee depreciation during Q3FY21.

During Q3FY21, Hubco recognised share of profit from CPHGC of Rs4.078 billion, up 7 percent mainly due to 3 percent rupee depreciation.

Finance costs decreased by 38 percent to Rs1.928 million. The decline in finance costs was led by lower interest rates.