Hub Power Company Reports Increased Earnings and Reduced Dividend in Third Quarter

Karachi, The Hub Power Company (HUBC) reported a notable increase in its consolidated quarterly earnings for the third quarter of fiscal year 2024 today. The earnings amounted to PkR17.19 billion, a 53% increase from the same period last year, exceeding expectations. However, the company announced a lower than expected cash dividend of PkR2.5 per share for the quarter.

According to AKD Securities Limited, HUBC's consolidated revenue for the quarter reached PkR31.8 billion, marking a 17% increase year over year. The revenue rise was accompanied by varied generation profiles across the company’s power plants. Notably, TEL generated 369 GWh, down 36% from the previous quarter, while NEL saw an 8.6-fold increase in production, generating 69 GWh. TNPTL and LEL reported 492 GWh and 95 GWh respectively, with TNPTL experiencing a 13% increase and LEL seeing a 32% decrease in generation compared to the previous quarter.

The company's share of profit from associates rose by 15% quarter over quarter to PkR12.1 billion, mainly due to performance fluctuations at CPHGC and ThalNova plants, though specific details were not provided in the report.

Finance costs for the quarter were reported at PkR6.6 billion, consistent with the previous quarter but 40% higher than the same period last year, attributable to increased financing rates and exchange rate adjustments on debt.

The reduction in dividend payout from the expected PkR4.0 per share to PkR2.5 per share reflects the company's recent acquisition of a 9.5% stake in SECMC from HBL, along with a tighter working capital situation exacerbated by increased circular debt and reduced power demand.