The management of HUBC held a corporate briefing session today to discuss the company’s performance post release of 3QFY21 results.

To recall, during 3QFY21 the company posted a profit after tax (PAT) of PKR 8,576mn (EPS: PKR 6.61), up by 19% YoY compared to PKR 7,201mn (EPS: PKR 5.55) during same period last year. This rise in earnings is due to lower finance cost and PKR depreciation. During 9MFY21, profitability of the company was up by 37% YoY to PKR 24,918mn (EPS: PKR 19.21) compared with PKR 18,253mn (EPS: PKR 14.07).

Below are the key takeaways from the discussion:

Key Takeaways

Plant availability during 9MFY21 of Hub, Narowal, Laraib and CPHGC plant arrived at 89% (9MFY20: 90%), 94% (9MFY20: 96%), 98% (9MFY20: 99%), 94% (9MFY20: 100%), respectively.

Due to addition of Coal and RLNG plants, the load factor of Hub plant settled at 0.4% during 9MFY21(9MFY20: 1.3%).

Load factors of Narowal, Laraib and CPHGC during 9MFY21 remained 21%, 44% and 58%, respectively.

~60% of the construction work has been completed at the Thar Energy plant and CoD is expected by Mar’22. Shipment of equipment will continue as per plan.

~37% of the work has been completed at ThalNova and CoD is expected by Jun’22. Local and foreign debt disbursement has started from Apr’21 which will speed up the construction.

Quarterly capacity payments of Hub, Narowal, Laraib and CPHGC are PKR 5.8bn, PKR 1.6bn, PKR 1.5bn and PKR 15bn, respectively.

Overdue receivables of Hub, Narowal, Laraib and CPHGC are PKR 42bn, PKR 9bn, PKR 4.5bn and PKR 39bn, respectively.

Application for tariff true-up of CPHGC is in the final stages and is expected any time.

Debt servicing of CPHGC has timely done due to revenue collection.

Coal conversion of the Hub plant is still under consideration and it will be based on Thar coal.

Dividend from CPHGC is delayed for 3-4 months (earlier was expected in May’21) due to liquidity problems.

Development on DHA Cogen is expected within 3-4 weeks.

NEPRA determined the revised tariff of Narowal plant as on Apr’02 2021 but has yet notified in the official gazette.

ECC has deferred the approval of payment due to NAB related issues. However, the management expects ECC to take a decision soon in this regard, as the Govt is committed to honor the binding agreements.

Courtesy – AHL Research