Pakistan’s largest IPP HUBCO posts profit of Rs75.3bn in FY24
Wire desk byline Sourced from Xinhua, Dawn, Arab News, Anadolu and Minute Mirror. Translated and abridged by the GSRRA Desk.
Electricity Production is a good business in Pakistan, all power producers have earned handsome profits.
Hub Power Company Limited (HUBCO), Pakistan’s largest Independent Power Producer (IPP), saw its profit increase by over 21% to Rs75.29 billion in the fiscal year 2023-24 which ended June 30.
On a consolidated basis, the company registered a profit of Rs62 billion in the same period of the previous year, according to a notice sent to the Pakistan Stock Exchange (PSX) on Monday.
Earnings per share (EPS) increased to Rs53.98 in the period under review compared to Rs44.37 in the same period last year (SPLY).
The company also announced a final cash dividend of Rs8.5 per share i.e. 85%. This was in addition to an interim cash dividend of Rs11.5 per share i.e. 115% during the financial year.
HUBCO’s earnings up 17% in 2QFY24
On a consolidated basis, the IPP’s revenue from contracts with customers surged by over 14% to Rs130.5 billion in FY24, compared to Rs114.3 billion recorded in the prior year.
The company’s cost of revenue inched up over 1% to Rs62.2 billion in FY24, compared to Rs61.5 billion in SPLY.
Consequently, the gross profit of HUBCO increased by over 29% to Rs68.3 billion in FY24. This translates to a profit margin of 48% in FY24, as compared to 46% in SPLY
Meanwhile, the company’s other income declined marginally, hitting Rs3.3 billion in FY24, compared to Rs3.6 billion in SPLY.
The company saw its other operating expenses surge to Rs2.45 billion, up 30 times compared to a meager Rs79 million in FY23.
HUBCO saw its cost of finance jump to Rs26.7 billion in FY24, an increase of over 38%. The increase comes as interest rates increased significantly during the year.
On the other hand, HUBCO earned Rs49.4 billion as a share of profits from associates and ventures in FY24, an increase of nearly 44% yearly.
The IPP paid Rs14.7 billion in taxes in FY24, up 74%.
HUBCO has a combined installed power generation capacity of 3,581 MW. The IPP through its subsidiaries operates in various business sectors including oil and gas, mining and industrial operations, and maintenance services.
Reference Link:- https://www.brecorder.com/news/40319336
Zamir Ahmed Awan is the founder and Chair of the Global Silk Route Research Alliance, a think tank in Islamabad. He studied engineering at Shanghai University in the 1980s, and years later he went back to China as Pakistan's science counsellor in Beijing, from 2010 until 2016, working on science and higher education cooperation between the two countries.…
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