The Hub Power Company Limited (HUBC) announced its 2QFY21 financial result today where the company posted a profit after tax (PAT) of PKR 8,198mn (EPS: PKR 6.32), up by 49% YoY compared to PKR 5,484mn (EPS: PKR 4.23) during 2QFY20. This takes 1HFY21 PAT to PKR 16,342mn (EPS: PKR 12.60) compared with PAT of PKR 11,052mn (EPS: PKR 8.52) during same period last year. The rise in earnings is due to recognition of share of profit from China Power Hub Generation Company (CPHGC) along with 6% YoY PKR deprecation and lower finance cost.  Along with the result, the company also announced a cash dividend of PKR 3.00/share taking 1HFY21 payout to PKR 7.00/share.

Result Highlights

During 2QFY21, net sales witnessed an increase of 4% YoY to PKR 10,997mn due to a 12% YoY increase in dispatches to 162 GWh (Hub Plant: 0GWh, Narowal Plant: 33GWh, 7% Load Factor; Laraib: 129GWh, 70% Load Factor). During 1HFY21, sales also increased by 9% YoY, again due to higher dispatches compared with last year.

During 2QFY21, gross margins of the company increased by 4pps YoY to 70%. The rise in margins is mainly attributable 6% YoY PKR depreciation during 2QFY21.

During 2QFY21, the company recognized share of profit from CPHGC of PKR 4,123mn (PKR 3.18/share), up by 26% YoY mainly due to 6% YoY PKR depreciation.

Finance costs decreased by 43% YoY to PKR 1,827mn. The decline in finance costs was led by lower interest rates.

The company also announced a cash dividend of PKR 3.00/share taking 1HFY21 payout to PKR 7.00/share.

Courtesy – AHL Research