Hub Power Company (HUBCO), which is one of the largest private power producers in the country, announced its consolidated financial results for the first quarter of FY21.
HUBCO’s consolidated profits improved massively by 45% to Rs. 8.44 billion as compared with Rs. 5.82 billion recorded in the same period last year. The growth in earnings during Q1 FY21 was due to the +9% rise in gross profits led by PKR depreciation, with Rs. 3.48 billion profit coming post commencement of operations from China Power Hub Generation Company Limited (CPHGC) at a lower finance cost.
Along with the result, the company announced a surprise cash dividend for Q1 FY21 of Rs. 4.0 per share. This is the first cash dividend announced by the company after two years.
Net sales of the company grew by 12.2% to Rs. 15.79 billion as compared to Rs. 14.08 billion in the same period last year. The increase was due to a higher generation of Hub, Narowal, and Laraib plant.
Gross profits were reported at Rs. 8.13 billion as compared to Rs. 7.48 billion.
The finance cost dropped by 38% to Rs. 1.90 billion during the quarter as compared to Rs. 3.06 billion last year due to a drop in markup expense amid a drop in interest rates. The share of profit from associates stood at Rs. 3.48 billion, up by 86% as compared to Rs. 1.87 billion last year owing to a higher share of profit from CPHGC.
Earnings per share of the company were reported at Rs. 6.28 as compared with Rs. 4.29.
At the time of filing this report, HUBCO’s shares at the bourse were trading at Rs. 84.75, up by Rs. 4.76 or 5.95% with a turnover of 16.16 million shares on Wednesday.