Pakistan: HUBCO announces 40 percent interim dividend

Hubco PlantPakistan largest independent power plant HUBCO has released its consolidated financial results for 1HFY15 posting profit after tax of PkR5.40 billion (EPS: PkR4.67) as compared to net profit for 1HYFY14 amounting to PkR3.33 billion (EPS: PkR2.88), up 62%YoY. This was driven largely by reduced operating costs amidst significantly lower O&M charges. In 2QFY15 alone, HUBCO posted net profit of PkR3.74 billion (EPS: PkR2.66), up 143%YoY/32%QoQ. While turnover came off by 28%QoQ on reduced generation at both plants, sequential profitability rose due to lower operating costs. Alongside the result, HUBCO announced an interim cash dividend of PkR4/share.
Key 1HFY15 result highlights included: 1) firming up of both gross margins (+225bps YoY to 11.4%) and operating margins (+320bps YoY to 10.9%), 2) a 18%YoY increase in finance costs pointing to persistent reliance on short term borrowings and 3) reduced generation levels in 2QFY15 pulling the average base plant load factors lower, still a slight improvement against last year’s overhaul impacted load factor (65% in 1HFY15 as against 62% in 1HFY14).

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