Hub Power posts Rs 1.441 billion profit

Hub Power Company has posted Rs 1.441 billion as its profit (unconsolidated) for the three month period ended March 31, 2011 as compared to Rs 1.435 billion earned in the corresponding quarter in 2010. The board of directors of the company in its meeting held on Tuesday declared that the company's earning per share has increased to Rs 1.25 in this quarter against Rs 1.24 in the same quarter last year.
According to the financial results sent to Karachi Stock Exchange (KSE), the company's turnover increased to Rs 31.126 billion in this quarter against Rs 25.577 billion in the same quarter a year back. The company's operating cost increased to Rs 28.891 billion against Rs 23.582 billion.
On nine months basis, the company's profit stood at Rs 4.284 billion translating into earning per share of Rs 3.70 in the nine months period ended March 31, 2011 against a profit of Rs 4.291 billion with per share earning of Rs 3.71 in the same period in 2010. In its directors report the company said that its customer WAPDA remained unable to meet its obligations to HUBCO required under the terms of the Power Purchase Agreement (PPA), these obligations remain secured by the sovereign guarantee of the government of Pakistan. On the date of this report an amount of Rs 101 billion was outstanding against WAPDA, of this Rs 94 billion is classified overdue (payable immediately). In addition, WAPDA remained unable to provide a Letter of Credit for Rs 12.92 billion as required under the PPA.
"Despite continued dialogue with the government of Pakistan, it is disappointing to report that there has been no improvement in the situation; as a result the company owes Rs 90 billion to PSO for fuel supply, part of which is covered by the Standby Letter of Credit of Rs 8 billion provided by Hubco", the company said and added this has also resulted in an irregular supply of fuel which has affected plant operations. During the nine months period of FY11, the Hub plant operated at an average load factor of 73.5 percent and an average complex availability of 86.4 percent. Electricity sold to WAPDA was 5,801GWs.