Hub Power Company (HUBC) announced its 4QFY23 result today wherein company reported profit to equity owners of PKR23.9bn (EPS of PKR18.4) up 241% YoY.

This takes full-year earnings to PKR57.6bn (EPS of PKR 44.4) for FY23, which is the highest ever in its history.
Along with the result, company announced final cash dividend of PKR6/share, taking total FY23 dividend to PKR 30/share which is also highest ever dividend in its history.

4QFY23 result came higher than industry expectations due to higher share of profit from associates and JV.
Share of Profit from Associate and JV jumped by 128% QoQ to PKR 14.8bn. The significant increase is due to full impact of ThalNova Power Plant which started commercial operation on Feb 17, 2023 followed by higher earnings contribution from China Power Hub Generation Company (CPHGC) amid rupee devaluation against US dollar

Finance cost increased by 199% YoY and 58% QoQ to PKR 7.5bn in 4QFY23. This is likely on
the back of higher borrowings to finance the newly operational ThalNova plant and Thal Energy alongside higher short term borrowings and higher interest rates.
• Effective tax rate of HUBC clocked in at 8% in 4QFY23 as compared to 34% in 4QFY22 and 14% in 3QFY23.

PKR in Million4QFY234QFY22YoYQoQFY23YoY
Net Sales32,34532,1061%19%114,26318%
Operating Costs15,28423,459-35%8%61,485-4%
Gross Profit17,0618,64797%30%52,77859%
Admin Exp39426051%15%1,36833%
Other Income2,8381,417100%3,58569%
Other Operating Exp-43728479-80%
Finance Cost7,4792,500199%58%19,323144%
Profit from Asso. & JV14,7634,236248%128%34,316272%
Profit Before Tax27,73611,256146%94%70,418101%
Profit After Tax25,5767,399246%108%62,007110%
EPS18.435.41  44.37 
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