Hub Power Company Posts Massive Profit in 1HFY23

The Hub Power Company Limited (PSX: HUBC), one of the largest private power producers in the country, posted a consolidated profit after tax (PAT) of Rs. 24.1 billion in the half-year that ended on December 31st, 2022, up 90 percent compared to Rs. 12.7 billion in 1HFY22.

Profits during October-December jumped 192 percent year-on-year (YoY) to Rs. 14.7 billion from Rs. 5 billion last year.

According to Arif Habib Limited (AHL), the rise in earnings is majorly due to a 15.7x YoY increase in the share of profit to Rs. 13.07 billion and an 89 percent increase in other income.

The company also announced an interim cash dividend of Rs. 5.75/share, which is in addition to the interim dividend already paid at Rs. 15.5/share.

The turnover of the company increased to Rs. 54.7 billion in 1HFY23, up by 18.2 percent as compared to Rs. 46.2 billion recorded in the same period last year. The company paid over Rs. 32 billion in operating costs during the half year while Rs. 12.2 billion during Q2.

The company posted a gross profit of Rs. 22.5 billion during the otherwise tumultuous six months of FY23, against Rs. 15.8 billion reported in FY22.

The finance cost of the company jumped by 110 percent from Rs. 3.39 billion to Rs. 7.12 billion during the period in review. Meanwhile, the other income of the company increased by 88.5 percent YoY to Rs. 907 million compared to Rs. 481 million in 1HFY22.

General and administration expenses showed an increase from Rs. 457 million to Rs. 632 million during the period in review.

The power producer paid Rs. 4.2 billion in income tax during the period, 740 percent more than the Rs. 501 million paid the previous year.

Basic and diluted earnings per share of the company came in at Rs. 17.27 in 1HFY23, compared with Rs. 9.41 last year.

At the time of filing, HUBC’s scrip at the bourse was Rs. 70.42, up 0.67 percent or Rs. 0.47 with a turnover of 21.33 million shares on Monday.

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