HUB Power Company Limited (PSX: HUBC) announced its financial performance for FY22 recently with a slight dip in consolidated earnings for the year – 15 percent year-on-year. The decline in earnings stemmed from lower share of profits from associates as well as higher finance cost. The company’s consolidated revenues were seen growing by 78 percent due to higher utilization of the base plant and Narowal plant overall in FY22 from 2 and 26 percent in FY21 to 12 and 46 percent respectively in FY22. On the other hand, the utilization of Laraib and China Power Hub Generation Company (CPHGC) plants were down from 63 and 72 percent in FY21 to 57 and 62 percent respectively in FY22. CPHGC utilization was low due to the outage during the year. CPHGC unit 1 returned to service in January 2022.
Gross profits were flat for HUBC in FY22, whereas the net earnings fell despite growth in other income due to 40 percent decline in share of profits from associates and joint ventures and an 8 percent rise in finance costs. The company did not pay any dividends for FY22, which was due to high fuel and commodity prices.
Hub Power Company Limited has a diversified portfolio. The power company’s Thar Energy Limited TEL and ThalNova Power Thar TNPTL plants are expected to achieve commercial operations in 1HCY22. Construction of Sindh Engro Coal Mining Company (SECMC) Phase-ll is also underway where COD is expected later this year.
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