Hub Power Company Limited, which is one of the largest private power producers in the country announced its financial results for the half year ending on December 31st, 2018 (1HY19). The company reported an unconsolidated profit of Rs. 3.02 billion, down by 26.7% as compared with Rs. 4.12 billion in the same period last year.
The company reported a 56.25% decline in sales falling to Rs. 18.97 billion from Rs. 43.36 billion in the period under view.
The government’s stance on furnace oil was one of the major reasons for the decline. The decline in revenue was due to lower generation (Hub and Narowal plant) as the government focused on producing power from fuels other than furnace oil.
Earnings per share of the company were decreased to Rs. 2.62 from Rs. 3.57.
The company did not announce any dividends for the outgoing quarter due to the liquidity crunch brought about by circular debt as well as equity requirement for upcoming projects, stated Topline Securities.
Similarly, during the 2nd quarter, Hubco’s profits were down by 21.13% to Rs. 1.53 billion from Rs. 1.54 billion. The decline was primarily due to a rise in finance cost as it was up by 62.35% to Rs. 953 million from Rs. 587 million.
Earnings per share during the quarter was stated at Rs. 1.33 from Rs. 1.68.
HUBCO’s script at the bourse was closed at Rs. 88.22, down by Rs. 3.85 with a turnover of 3.64 million shares on Thursday.