KARACHI: Hub Power Company Limited announced Tuesday its profit had increased by 22 percent to Rs7,389 billion for the quarter ended March 31, 2020, translated into EPS (earnings per share) of Rs5.55.
Electric producers have produced Rs3,288 billion (EPS: Rs2,64) in the same period before.
Analyst at broker Arif Habib said during 3QFY20, Hub Power’s net sales witnessed a 12% YoY decline to Rs11,820 million, due to lower shipments. “Sales also dropped 18% year on year to 9MFY20, for the same reason mentioned above”. Due to lower electricity demand and the availability of relatively cheaper resources (coal and hydel), the fuel load factor of oil-fired generators remains very low, the broker said in his research note.
The report said the electricity company’s gross margin during 3QFY20 increased 19 pps YoY to 63 percent due to 10.5 percent depreciation rupees coupled with a lower load factor.
The company recognized a portion of CPHGC’s earnings of Rs3,807 million (Rs2.93 / share) during 3QFY20, which was the main reason for increasing the company’s profitability, brokers said.
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