The Hub Power Company Limited (HUBC) is scheduled to announce its 2QFY21 financial result on 26th Feb’21. We forecast the company to post a consolidated profit after tax for 2QFY21 of PKR 8,047mn (EPS: PKR 6.20) compared to profit after tax of PKR 5,484mn (EPS: PKR 4.23) during 2QFY20.

This will take the 1HFY21 profit to PKR 16,191 (EPS: PKR 12.48), increasing 46% YoY. During 2QFY21, the uptick in earnings is mainly attributable to i) PKR depreciation, ii) decline in finance costs and iii) share of profit from China Power Hub Generation.

Sales are expected to increase by 3% YoY during 2QFY21 on the back of 12% YoY increase in dispatches to 162 GWh (Hub Plant: 0GWh, Narowal Plant: 33GWh, 7% Load Factor; Laraib: 129GWh, 70% Load Factor). Finance costs are expected to decrease by 45% YoY to PKR 1,740mn, due to lower interest rates.

Sources: Company Financials, AHL Research,