Karachi: Hub Power Company Limited (HUBC) and Nishat Power Limited (NPL) have released their financial results for the fourth quarter of FY24, revealing different trajectories in their operational and financial performances.
According to AKD Securities Limited, HUBC recorded a net profit after tax (NPAT) of PkR17.6 billion, translating to earnings per share (EPS) of PkR13.56 for the quarter. This represents a slight 2% increase quarter-over-quarter but a 26% decrease year-over-year. The annual decline primarily stems from a one-off insurance settlement received by an associate in the same period last year. Despite these fluctuations, the company’s earnings remained relatively stable on a quarterly basis, supported by consistent generation across its power plants.
HUBC’s total generation included notable contributions from various sources: NEL (21 Gwh), CPHGC (80 Gwh), TEL (400 Gwh), TNPTL (474 Gwh), and LEL (125 Gwh). The company’s revenue for the quarter was reported at PkR30.8 billion, marking a 3% and 5% decrease quarter-over-quarter and year-over-year, respectively. The share of profit from associates also declined, expected to reach PkR11.2 billion, decreasing by 7% quarter-over-quarter and 24% year-over-year. HUBC is expected to announce a final dividend of PkR5.0 per share, bringing the total FY24 payout to PkR16.5 per share.
On the other hand, Nishat Power Limited reported an NPAT of PkR1.18 billion or EPS of PkR3.34 for the quarter, showing a 23% and 3% decrease quarter-over-quarter and year-over-year, respectively. This downturn is attributed to lower gross margins due to a reduced load factor and increased finance costs, which surged 13 times quarter-over-quarter due to short-term borrowings. Plant utilization stood at 16%, a decline from previous quarters, influenced by lower generation from Residual Fuel Oil (RFO) sources amidst abundant hydel availability during the summer. NPL announced a final dividend of PkR2.5 per share, maintaining the annual payout at PkR7.0 per share.
These results reflect the varying impacts of operational efficiencies, fuel source dynamics, and market conditions on the financial health of these leading power producers in Pakistan.