Hub Power Company Ltd (HUBC) announced its latest results today, reporting a consolidated Net Profit After Tax (NPAT) of PKR 11.8 billion (Earnings Per Share: PKR 9.07), which reflects a year-on-year decrease of 43% and aligns with expectations. For fiscal year 2025, the consolidated Profit After Tax (PAT) amounted to PKR 46 billion (EPS: PKR 35.56). The company also declared a final cash dividend of PKR 10 per share, bringing the total payout for the year to PKR 15 per share, a reduction of 25% year-on-year. Key highlights include:
– Consolidated revenue for the quarter was PKR 18.8 billion, a decline of 47% compared to PKR 35.1 billion in the same period last year. This contraction was mainly due to the termination of the base plant’s Power Purchase Agreement (PPA), effective October 1, 2024. Consequently, the company’s gross margins decreased to 45%, down from 53% in the previous year.
– The annual decline in profitability was attributed to two main factors: i) lower revenue resulting from the termination and renegotiation of the base plant’s PPA and the New Energy Limited (NEL), and ii) a decrease in share of profits during the period.
– Share of profit from associates totaled PKR 11.0 billion, down 25% year-on-year. The notable spike last year was primarily due to the fair value revelation of Prime Oil & Gas’s assets, which led to prospective adjustments in the previous year’s accounts.
– The finance cost for the quarter was PKR 2.8 billion, representing a year-on-year decrease of 54%. This decline was driven by falling interest rates and significant repayment of outstanding liabilities during the period.
– The effective tax rate for the quarter was 18%, compared to 18% and 20% in previous periods.
– Regarding stand-alone accounts, the unconsolidated NPAT for the final quarter was PKR 513 million (EPS: PKR 0.40), down 96% year-on-year. This brought full-year earnings to PKR 19.1 billion (EPS: PKR 14.71). Dividend and other income for the final quarter was PKR 1.1 billion, down 84% year-on-year, resulting in a total for the full year of PKR 15.5 billion (down 7% year-on-year).
https://research.akdsl.com/638925011044565932.pdf
Courtesy- AKD Research
