The Hub Power Company Limited (HUBC) to post a profit after tax of PKR 11.4bn (EPS: PKR 8.80) in 4QFY23 compared to PKR 7.0bn (EPS: PKR 5.41) during 4QFY22. The YoY rise in earnings is expected due to 36% PKR depreciation and the addition of TEL and ThalNova. Sales are expected to decrease by 23% due to lower dispatches (Hub base plant: 0GWh, Narowal 169 GWh, Laraib: 121 GWh), however, the addition of TEL abated the decline. Finance cost is projected to settle at PKR 5.5bn in the outgoing quarter (+117% YoY) due to higher interest rates. Share of profit is expected to increase by 66% YoY amid higher profitability from associate companies. This will take the FY23 earnings to PKR 45.0bn (EPS: PKR 34.73), +58% YoY. We expect the company to announce a cash dividend of PKR 5.50/share along with the result (FY23 DPS: PKR 29.50/share).

Courtesy – AHL Research