KARACHI: The Hub Power Company recorded profit after tax (PAT) at Rs8,190 million, translating into earning per share (eps) at Rs7.08, for the year ended June 30, showing stellar growth of 51 per cent over the eps at Rs4.69 the previous year.
The Board announced the results on Wednesday, declaring final cash dividend at Rs3 per share for the shareholders, which raises the total annual payout to Rs6 per share.
For 4QFY12, the company reported a big jump of 183 per cent in PAT at Rs3,228 million (eps: Rs2.79).
“Higher payout despite augmented levels of circular debt re-affirms company’s ability to maintain high distribution,” says Nurali Barkatali, analyst at BMA Research.
Nauman Khan, analyst at Topline Securities commented that the earnings were “slightly above market consensus, while the payout was in line with market expectations.”
He believed that the earnings were propelled by one-time impact of Narowal project commissioning. Other factors in earning growth included depreciation of 9 per cent in Rupee value and efficiency gains.
Naveed Tehsin at JS Global also said that the improved earning was primarily attributable to revised Narowal tariff, Rupee depreciation and up tick in Hubco’s tariff profile.
The top line of Hubco grew by 42 per cent over the earlier year to Rs175 billion, primarily due to pass through of higher furnace oil prices and commissioning of Narowal project.
The company however, was able to absorb the impact of 109 per cent increase in financial charges, which amounted to Rs3,382 million, the heavy rise attributable to financing facility associated with the Narowal project and the circular debt issue. The share in Hubco rose 17 paisa on Wednesday with closing seen at Rs43.80.