KARACHI: Hub Power Company (HUBC) has reported a notable rise in earnings for the fourth quarter of the fiscal year 2026, with earnings per share (EPS) reaching Rs12.77, representing a 39% year-on-year increase. The increase in earnings was primarily attributed to higher profit contributions from associates and joint ventures, as well as a reduced effective tax rate.

According to JS Global, the profit contribution from associates and joint ventures saw a 19% year-on-year increase and an 18% quarter-on-quarter rise, driven largely by China Hub Power Company and Prime International. The latter's performance may reflect a reversal of super tax following a decision by the Supreme Court. The effective tax rate for the company dropped significantly to 1.4% in 4QFY26, compared to 19.9% in the same quarter the previous year and 35.5% in the preceding quarter.

Pre-tax profits stood at Rs18.8 billion in the fourth quarter, marking a 19% year-on-year increase. On an annual basis, the pre-tax profit grew by 10%, largely due to contributions from associates and joint ventures. The company also declared a dividend of Rs5.0 per share for the fourth quarter, bringing the total dividend for FY26 to Rs20.0 per share.

Despite minimal dividend income at the unconsolidated level in the fourth quarter, the company's full-year dividend income more than doubled to Rs29.3 billion, mainly due to contributions from Thar power plants, which have reached their Project Completion Date.

Hub Power Company remains a favorable investment, according to the press release, currently trading at a price-to-earnings ratio of 5.4x for the forecasted fiscal year 2027.