Hub Power Company (HUBC) closed the financial year on a weaker note with consolidated net profit of Rs2.67 billion (EPS: Rs2.22) for the fourth quarter. This took FY19 earnings to Rs11.24 billion (EPS: Rs9.37). The decline in 4QFY19 earnings was mainly attributable to 108%YoY increase in finance cost due to CAPEX financing and higher interest rates. HUBC opted for additional short term borrowing during 4QFY19 to increase its stake in 1,320MW CPHGCL project as funds raised through the recent right issue were expected to materialize mid-July. For full year FY19, 67%YoY higher finance cost was partially offset by Rupee depreciation impact, keeping the bottomline flattish. As per expectations, HUBC did not announce any cash dividend along with its result due to liquidity constraints. To note, the proceeds from the first Energy Sukuk were entirely used to retire payable to PSO.