Karachi, September 12, 2023 (PPI-OT): HUBC Strong finish to FY23

The Hub Power Company (HUBC) announced its 4QFY23 result earlier today, where the company reported consolidated quarterly earnings of PkR23.9bn (EPS: PkR18.43), up by 112%QoQ/241%YoY. This takes cumulative earnings for the full year to PkR57.5bn (EPS: PkR44.37), up by 102%YoY.

Consolidated revenue for the quarter clocked in at PkR32.3bn, up by 19%QoQ as the newly operational subsidiaries i.e. TEL and TNPTL’s load factors rose significantly throughout the quarter alongside CPHGC’s strong re-emergence during the period. Overall, Base/CPHGC/TEL/TNPTL/Narowal/Laraib’s load factor stood at 0%/9.5%/55%/87%/34%/75% during the quarter. Furthermore, revenues remained up during the quarter due to the currency deprecation as well, as the avg. PkR/USD parity weakened by 10% between 3QFY23 and 4QFY24, contributing towards growth in capacity charges.

Share of profit from associates jumped significantly during the quarter as well, up by 128%QoQ/272%YoY, clocking in at PkR14.7bn. Successful COD of ThalNova Power plant during the year alongside possible inclusions of ENI and SECMC profits are likely to have contributed to the sharp increase during the period.

Finance costs rose by 58% as well, clocking in at PkR7.48bn during the quarter. This is likely on the back of higher borrowings to finance the newly operational Thalnova plant alongside higher reliance on ST borrowings amidst tighter working capital situation.

The company has also announced a dividend of PkR6.0/sh for the quarter, above our expectations of PkR3.0/sh. This takes cumulative payout for the year to PkR30.0/sh, amounting to a payout ratio of 68%.