Hub Power Company (HUBCO) posted 2QFY19 earnings of Rs2.4 billion (EPS: Rs2.11), down 16% YoY. This takes the 1HFY19 earnings to Rs5.4 billion (EPS: Rs4.67), up 2%YoY. The result announcement was not accompanies by cash dividend, likely due to liquidity crunch and ongoing expansion plans. The decline in earnings was driven by: 1) a 52%YoY lower topline, (2) a 42%YoY higher finance cost, and 3) higher share of loss from associates. To note, HUBCO has withdrawn 30% of its financing agreement of Rs26 billion as of September 2018, which along with higher interest rates dragged earnings for the quarter. For 1HFY19, the earnings remained flattish, where 7%YoY higher gross profits due to weaker rupee and higher other income offset the impact of 36%YoY increase in finance cost. Circular debt resolution may ease liquidity situation for IPPs, where Rs200 billion Sukuk issue is in pipeline.