The Hub Power Company Limited (HUBC) is scheduled to announce its 2QFY23 financial result on Feb 16th, 2023. We forecast the company to post a consolidated profit after tax of PKR 12,097mn (EPS: PKR 9.33) in 2QFY23 compared to PKR 4,796mn (EPS: PKR 3.70) during 2QFY22. This will take 1HFY23 earnings to PKR 21,196mn (EPS: PKR 16.34), +74% YoY. The rise in earnings is expected due to 26% PKR depreciation, addition of TEL and absence of impairment loss which CPHGC booked during 2QFY22.

Moreover, during 2QFY23, we expect the CPHGC to book a reversal of aforementioned impairment loss of PKR 1,990mn. Sales are expected to come down by 18% YoY I 45% QoQ in 2QFY23 on the back of zero dispatches from Hub base plant, however TEL has added during 2QFY23. Other income is expected to increase by 65% YoY due to the higher O&M income of HPSL. Finance cost is projected to settle at PKR 3,249mn in the out-going quarter (+87% YoY) due to higher interest rates. Share of profit is expected to clock-in at PKR 6,034mn against loss of PKR 1,462mn during 2QFY22.

We do not expect any payout along with the result.

Courtesy – AHL Research