The Hub Power Company Limited (PSX: HUBC), one of the largest private power producers in the country, has announced the highest-ever profit of Rs. 62 billion in FY23, a 110 percent increase over a profit of Rs. 29.5 billion reported in FY22.
The profit attributable to the owners of the holding company stood at Rs. 57.5 billion in the financial year that ended on June 30, 2023, up 102 percent compared to Rs. 28.47 billion in FY22
Along with the result, the company announced a final cash dividend for FY23 at Rs. 6 per share i.e. 60 percent, which is in addition to the interim dividend already paid at Rs. 24 per share.
The rise in earnings is majorly due to a 3.7x YoY increase in the share of profit from associates and joint ventures and the addition of Thar Energy Limited (TEL)
The turnover of the company increased to Rs. 114.2 billion in FY23, up 18 percent as compared to Rs. 97.1 billion recorded in the same period last year. The growth was led by higher FO prices, however, dispatches went down by 9 percent compared to last year.
The company paid over Rs. 61.4 billion in operating costs during the financial year against Rs. 64 billion in SPLY. The company posted a gross profit of Rs. 52.7 billion during the 12 months, against Rs. 33.1 billion reported in FY22.
During FY23, the share of profit from associate and joint ventures increased by 3.7x YoY to Rs. 34.3 billion. The rise in the share of profit is witnessed due to a claim for property damage and business interruption of a total amount of $65 million and the addition of Eni’s business.
The finance cost of the company jumped by 144 percent from Rs. 9.2 billion to Rs. 19.3 billion due to higher interest rates and the addition of TEL finance cost. Meanwhile, the other income of the company increased to Rs. 3.5 billion compared to Rs. 2.1 billion in FY22.
General and administration expenses showed an increase from Rs. 1 billion to Rs. 1.37 billion during the period in review. The power producer paid Rs. 8.4 billion in taxes during the period, 52 percent more than the Rs. 5.5 billion paid the previous year.
Basic and diluted earnings per share of the company came in at Rs. 44.37 in FY23, compared to Rs. 21.95 last year. HUBC’s scrip at the bourse closed at Rs. 81.8, up 0.68 percent or Rs. 0.55 with a turnover of 11,855,802 million shares on Tuesday.
Source: Pro Pakistani