The Hub Power Company Limited (HUBC) is scheduled to announce its 3QFY22 financial result on Apr 28th 2022. We forecast the company to post a consolidated profit after tax for 3QFY22 of PKR 9,940mn (EPS: PKR 7.66) compared to a profit after tax of PKR 8,576mn (EPS: PKR 6.61) during 3QFY21.

On a QoQ basis, earnings are expected to increase by 107%, mainly attributable to a higher profit share from China Power Hub. We hope the CPHGC to receive the insurance claim of PKR 1.8bn during the quarter. If we exclude insurance claims, earnings are expected to be clocked in at PKR 7.19/share for 3QFY22.

Sales are expected to increase by 39% YoY in 3QFY22 due to higher dispatches and higher FO prices. Load factors of all plants remained higher due to higher demand from power purchasers.

CPHGC was fully synchronized with the National Grid on Jan 6th 2022 (to recall, one unit of the power plant was offline due to transformer damage). Finance cost is expected to clock in at PKR 1,759mn due to lower short-term borrowings. We expect the company to announce a cash dividend of PKR 3.5/share.

Courtesy – AHL Research