Hub Power Company Limited (HUBCO), Pakistan’s largest Independent Power Producer (IPP), saw its profit increase by over 17% to Rs17.18 billion in the second quarter of fiscal year 2023-24 that ended December 31.

On a consolidated basis, the company registered a profit of Rs14.68 billion in the same period of the previous year, according to a notice sent to the Pakistan Stock Exchange (PSX) on Wednesday.

Earnings per share (EPS) increased to Rs11.78 in the period under review compared to Rs10.25 in the same period last year (SPLY).

The company also announced an interim cash dividend of Rs4 per share i.e. 40% in the second quarter.

This is in addition to an interim cash dividend of Rs5 per share i.e. 50% already paid in the first quarter.

On a consolidated basis, the IPP’s turnover surged by nearly 19% to Rs29.91 billion in 2QFY24, compared to Rs25.09 billion recorded in the prior year.

The company’s operating costs inched up nearly 8% to Rs13.16 billion in 2QFY24, compared to Rs12.23 billion in SPLY.

However, the gross profit of HUBCO increased by over 30% to Rs16.75 billion in 2QFY24. This translates to a profit margin of 56% in 2QFY24, as compared to 51.3% in SPLY

HUBCO’s profit soars 93% in 1QFY24

Meanwhile, the company’s other income showed an impressive improvement of 82% YoY, hitting Rs900.45 million in 2QFY24, compared to Rs495.18 million in SPLY.

HUBCO saw its cost of finance jump to Rs6.97 billion in 2QFY24, an increase of over 46%. The increase comes as interest rates increased significantly during the year.

On the other hand, HUBCO earned Rs10.56 billion as a share of profits from associates and ventures in 2QFY24, an increase of over 6% yearly.

The IPP’s effective tax rate stood at 15.7% in 2QFY24, lower than 17.5% in 1QFY24.

HUBCO has a combined installed power generation capacity of 3,581 MW. The IPP through its subsidiaries operates in various business sectors including oil and gas, mining and industrial operations and maintenance services.