The Hub Power Company Limited (HUBC) is scheduled to announce its 1HFY24 financial result on Feb 14th, 2024, where we expect the company to post consolidated earnings of PKR 34,065mn (EPS: PKR 26.26) in 1HFY24, an increase of 52% YoY as compared to SPLY. We forecast the company to post a consolidated profit after tax of PKR 16,983mn (EPS: PKR 13.09) during 2QFY24, a rise of 28% YoY, vis-à-vis PKR 13,299mn (EPS: PKR 10.25) during SPLY.

Topline is expected to soar by 7% YoY in 2QFY24 on the back of higher capacity payments, primarily driven by the devaluation of PKR against the greenback. Other income is expected to increase by 68% YoY because of insurance claimed on alternators of NEL that developed a fault. In 2QFY24 finance cost is projected to settle at PKR 8,986mn (+88% YoY) due to higher interest rates. Share of profit in 2QFY24 is expected to clock-in at PKR 12,429mn against 9,986mn in SPLY (up 24%YoY).

We expect the company to distribute a dividend of PKR 5.75/share in 2QFY24, taking the total dividend in 1HFY24 to PKR 10.75/share. (Courtesy – AHL Research )