The Hub Power Company Limited, one of the country’s largest private power producers, reported a consolidated profit after tax (PAT) of Rs. 24.1 billion in the half-year that concluded on December 31st, 2022, up 90 percent from Rs. 12.7 billion in the previous fiscal year.
Profits increased 192 percent yearly (YoY) to Rs. 14.7 billion from Rs. 5 billion the previous year.
The increase in earnings is primarily due to a 15.7x YoY increase in profit share to Rs. 13.07 billion and an 89 percent growth in other income, according to Arif Habib Limited (AHL).
The company also declared an interim cash dividend of Rs. 5.75/share, in addition to the already paid Rs. 15.5/share interim dividend.
Furthermore, the company’s turnover increased by 18.2 percent to Rs. 54.7 billion in 1HFY23, up from Rs. 46.2 billion in the same period last year. During the yearÂ’s first half, the company spent more than Rs. 32 billion on operating costs, while Q2 cost Rs. 12.2 billion.
The company earned Rs. 22.5 billion in gross profit during the otherwise turbulent first half of FY23, compared to Rs. 15.8 billion in FY22.
During the review period, the company’s finance cost increased by 110 percent, from Rs. 3.39 billion to Rs. 7.12 billion. Meanwhile, the other revenue generated by the company increased by 88.5 percent YoY to Rs. 907 million as compared to Rs. 481 million in 1HFY22.
General and administrative expenses increased from Rs. 457 million to Rs. 632 million during the period under consideration.
Moreover, the power producer paid Rs. 4.2 billion in income tax, a 740 percent increase over the Rs. 501 million paid the previous year. The company’s basic and diluted per-share earnings were Rs. 17.27 in 1HFY23, which rose from Rs. 9.41 the previous year.
HUBC’s stock was trading at Rs. 70.42 at the time of filing, up 0.67 percent or Rs. 0.47 on a turnover of 21.33 million shares.