The Hub Power Company Limited (HUBC) is scheduled to announce its 2QFY22 financial result on 15th Feb’22. We forecast the company to post a consolidated profit after tax for 2QFY22 of PKR 8,122mn (EPS: PKR 6.26) compared to profit after tax of PKR 8,198mn (EPS: PKR 6.32) during 2QFY21.

On QoQ basis, earnings are expected to increase by 10%, mainly attributable to higher share of profit from China Power Hub Generation due to damage loss of equipment during 1QFY21.

During 2QFY22, sales are expected to increase by 62% YoY on the back of higher dispatches and higher FO prices. Hub base plant load factor remained 9% (238 GWh), Narowal dispatched 152 GWh to the national grid converting the load factor to 32% while Laraib’s load factor remained 58% (108 GWh). Finance cost is expected to decline by 14% YoY to PKR 1,572mn due to lower level of short term borrowings.

Courtesy- AHL Research