Power Company (HUBC) on Thursday announced unconsolidated earnings of Rs 1.57 per share during 1QFY14, depicting a decline of 14 percent as compared to EPS Rs 1.83 recorded in the same period last year, analysts at Topline Securities said. Despite the resolution of circular debt, "we believe, company's load factor for base plant ranged in between 62-66 percent to. 82 percent in the same period last year. However, load factor of its Narrowal plant is likely to be around 80 percent as against 74 percent in the same period last year", they said.
As highlighted in our research note titled 'few uncertainties affecting share price' released on October 10, 2013, one of company's generators was down for maintenance/up gradation which led to denting profitability as the company dispatched lesser energy, they said. Analysts said that another thing worth mentioning is Hubco's financial charges that have been decreased by 48 percent or by Rs 879mn signifying company's better cash flow position as a result of successful resolution of circular debt.
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