HUBCO profit declines 68% in 2QFY25

Amid lower revenue, Hub Power Company Limited (HUBCO), Pakistan’s largest Independent Power Producer (IPP), saw its profit decline by over 68% to Rs5.48 billion in the quarter that ended December 31, 2024.

On a consolidated basis, the company registered a profit of Rs17.18 billion in the same period of the previous year, according to a notice sent to the Pakistan Stock Exchange (PSX) on Wednesday.

Consequently, earnings per share (EPS) decreased to Rs3.25 per share in the period under review compared to Rs11.78 per share in the same period last year (SPLY).

The company announced a cash dividend of Rs5 per share i.e. 50%.

“HUBCO revenue and profit dipped sharply in 2QFY25 due to full quarter impact of HUB base plant termination,” said Arif Habib Limited (AHL).

“Bottom line was further suppressed due to likely provision of LPS disallowance to Narowal.”

On a consolidated basis, the IPP’s revenue from contracts with customers lowered by 48% to Rs15.49 billion in 2QFY25, compared to Rs29.91 billion recorded in the prior year.

The company’s cost of revenue declined nearly 31% to Rs9.12 billion in 2QFY25, compared to Rs13.16 billion in SPLY.

As a result, the gross profit of HUBCO decreased by nearly 62% to Rs6.38 billion in 2QFY25. This translates to a profit margin of 59% in 2QFY25, as compared to 44% in SPLY

Meanwhile, the company’s other income significantly increased by over 45%, hitting Rs1.3 billion in 2QFY25, compared to Rs900 million in SPLY.

The power producer’s profit from operations clocked in at Rs3.2 billion in 2QFY25, down 81%.

HUBCO saw its cost of finance lowered to Rs4.1 billion in 2QFY25, a decrease of nearly 41%.

On the other hand, HUBCO earned Rs9.8 billion as a share of profits from associates and ventures in 2QFY25.

The company’s profit before taxation stood at Rs8.9 billion, down 56%.

The IPP paid Rs3.45 billion in taxes in 2QFY25, up 8%.

Earlier this year, HUBCO Green (Private) Limited (HGL), a wholly owned subsidiary of Hub Power Holdings Limited (HPHL), inaugurated its first EV Charging Station at Ocean Mall, Karachi on Tuesday, 21st January 2025.