KARACHI: Hub Power Company Limited (HUBCO) on Friday announced 24 percent growth in profit after tax during first quarter ended September 30, 2018. The net profit of the company increased to Rs2.96 billion from Rs2.38 billion in the corresponding period of the last year.
The company declared earning per share (EPS) of Rs2.56 for the period under review as compared with EPS Rs2.06 in the same quarter of the last year.
Analysts at Arif Habib Limited said that surprisingly the company did not announced any cash dividend against street consensus of Rs1.50/share.
Net sales of the company decreased by 34 percent YoY to Rs17,946 million during 1QFY19.
The decline in sales is mainly due to 81 percent YoY decline in dispatches of Hub Plant (344 GWh; Load Factor: 13 percent). The dispatches of Nowal and Laraib plant also decreased by 5 percent YoY (306 GWh; Load Factor: 65 percent) and 37 percent YoY (58 GWh; Load Factor: 32 percent).
However, the furnace oil prices increased by 44 percent YoY.
Gross margins clocked-in at 27 percent which are 1,168pps higher on YoY basis. The rise in margins is due to lower load factor and 13 percent YoY Pak Rupee depreciation.
Finance costs have increased by 30 percent YoY due to higher reliance on short term borrowings (+16 percent YoY) and higher interest rates.