The Hub Power Company Limited

HUBC: 2nd Quarter Earning Release - Period Ending 31 Dec 2022

EPS (2ndQ): Rs. 8.72 - Up one and a half times over last quarter.

HUBC Announced a cash Dividend of Rs. 5.75 for the 2nd quarter. This is in addition to a hefty cash dividend of Rs. 15.5 paid in the first quarter. This takes this Power Producers ttm yield to over 30%. Don't expect a repeat though.

Profit after Tax (Un-Consolidated) for the 2nd quarter was Rs 11.3 billion, increasing 1.5 times over first quarter. The increase in the profit after tax was primarily from 'other income' of Rs 8.2 billion. Gross profit for the quarter was just Rs. 6 billion declining 5.6% compared to first quarter ending September 2022.

EBIT rose 100% boosted by other income. Financial cost saw quarterly increase of 4%.

On Monday (27Feb2022) the Market Price of HUBC closed at Rs. 70.6 up 1% trading a high volume of 22 mill shares. HUBC had made a 52week high of Rs. 80.35 and is slightly in green over one year period - compared to KSE100 Index that is down more than 7% in one year. Normally HUBC market price tracks KSE100 Index.

HUBC is trading at P/E of 3.5 and P/BV of 1.4. 

HUBC is included in our dividend focused Model Portfolio PSX25.

Ticker:	HUBC
Market Price	70.6	PKR
Market Cap	92	PKR Billion
Shares Outstanding	1,297	Million
Free Float	75%
FY End:	June

The Hub Power Company Limited got listed on Pakistan Stock Exchange in 1994, and has ticker symbol HUBC.

The Hub Power Company Limited was incorporated in Pakistan on August 1, 1991 as a public limited company. The principal activities of the Company are to develop, own, operate and maintain power stations. The Company owns an oil-fired power station of 1,200 MW (net) in Balochistan (Hub plant).

HUBC revenue consists of, Capacity Purchase Price (CPP),Energy Purchase Price (EPP),Late Payment Interest (LPI),Startup Charges (SC),Part Load Adjustment Charges (PLAC), Less Sales tax on EPP.

Fuel Cost is substantial part of Operating Costs. 'Other Income' is normally from 'management services'.

HUBC has following Subsidiaries:

- Laraib Energy Limited (LEL) - Holding of 74.95%;

- Hub Power Services Limited (HPSL) - Holding of 100%;

- Hub Power Holdings Limited (HPHL) - Holding of 100%;

- Narowal Energy Limited (NEL) - Holding of 100%; and

- Thar Energy Limited (TEL) - Holding of 60%.

HUBC Quarterly Profit and Loss (Un-Consltd)

HUBC: Hub Power
Profit & Loss Account - Interim		3Months	3Months
Period Ending	Q/Q %	31Dec2022	31Sep2022
		PKR Millions	PKR Millions
Revenue	-51.7%	8,415	17,417
Gross Profit	-5.6%	6,023	6,383
Admin & General Expenses	37.5%	-226	-165
WPP	1231.0%	-410	-31
Operating Profit	-13.0%	5,386	6,188
Other Income	1232.9%	8,220	617
Other Expenses		0	0
Finance Cost	4.1%	-2,248	-2,159
Profit Before Taxation	144.5%	11,358	4,645
Taxation		-47	-193
Profit After Taxation - Unconsolidated	154.1%	11,311	4,452
Profit After Taxation - Consolidated	255.8%	14,680	4,126
EPS	154.1%	8.72	3.43
Cash Dividend		5.75	15.50
Stock Dividend		0	0

HUBCO Price Chart

See more at :

https://dps.psx.com.pk/company/HUBC

https://hubpower.com/