The Hub Power Company Limited (HUBC) will announce its 3QFY23 financial result on Apr 27th, 2023. We forecast the company to post a profit after tax of PKR 11.6bn (EPS: PKR 8.92) in 3QFY23 compared to PKR 9.2bn (EPS: PKR 7.12) during 3QFY22. The YoY rise in earnings is expected due to 22% PKR depreciation and the addition of TEL.

Sales are expected to increase by 8% YoY in 3QFY23 due to the addition of TEL, however, dispatches from the Hub base plant are expected to remain zero. Other income is expected to increase by 121% YoY due to the higher O&M income of HPSL. Finance cost is projected to settle at PKR 3.5bn in the outgoing quarter (+75% YoY) due to higher interest rates.

On QoQ basis, earnings are expected to decline by 13% due to a 43% QoQ decline in profit share. This will take the 9MFY23 earnings to PKR 34.0bn (EPS: PKR 26.19), +58% YoY. We do not expect any payout along with the result.

Courtesy – AHL Research