Pakistan’s
second largest independent power producer (IPP), Hub Power Company (HUBCO ) has
announced its half yearly financial results for the period ended 31st December
2015. The entity has reported profit Rs5.3 billion (EPS: Rs4.59) attributable
to holding company for the consolidated entity, posting 2%YoYdecline.
Profit for
the quarter was reported Rs2.7 billion (EPS: Rs2.38), down 10%YoY but up 8%QoQ.
With earnings resting within estimates, interim dividend payout of 45 percent
was higher than the expectations. Higher profit can be attributed to Rs1.1 billion
(EPS: Rs0.69) income from Laraib, up by 19%YoY.
Half yearly results
reflect: 1) a 38%YoY reduction in turnover due to persisting fall in furnace
oil price (45%YoY decline), 2) operating costs down by 42%YoY (majorly through
falling input costs), 3) General and Admin expenses (rising 148%YoY) reflect
expenses arising from headway on new ventures, and 4) financial costs sliding
33%YoY.
Being
indicative of margin improvements from falling input prices, HUBCO results
point to a rise in spending on account of new ventures, with accompanying
losses being recognized in the consolidated accounts. Moreover, higher load
factors failed to dent profits following the completed overhaul of the base
plant, while diversification (income from Laraib) continues to support healthy
payouts.
