Hub Power Company Limited (HUBCO), Pakistan’s largest Independent Power Producer (IPP), saw its profit jump by over 93% to Rs18.32 billion in the first quarter of fiscal year 2023-24 that ended September 30.

The company registered a profit of Rs9.47 billion in the same period of the previous year, according to a notice sent to the Pakistan Stock Exchange (PSX) on Wednesday.

“This increase in profitability can be attributed to the addition of TEL, ThalNova, and Prime International in its portfolio, as well as a 28% YoY depreciation of the Pakistani rupee against the US dollar, which further contributed to improved financial performance,” said Arif Habib Limited (AHL) in a note.

Earnings per share (EPS) increased to Rs13.17 in the period under review compared to Rs7.01 in same period last year (SPLY).

The company also announced an interim cash dividend of Rs5 per share i.e. 50% in the first quarter.

On a consolidated basis, the IPP’s turnover surged by nearly 14% to Rs33.73 billion in 1QFY24, compared to Rs29.59 billion recorded in the prior year.

On the other hand, operating costs also declined over 14% to Rs16.99 billion in 1QFY24, compared to Rs19.87 billion in SPLY.

Resultantly, the gross profit of HUBCO increased by over 72% to Rs16.74 billion in 1QFY24.

However, the company’s other income showed a decline of 32% YoY, hitting Rs280.85 million in 1QFY24, compared to Rs412.28 million in SPLY.

Meanwhile, the company’s cost of finance jumped to Rs7.07 billion in 1QFY24, an increase of over 203%. The increase comes as interest rate increased significantly during the year.

However, HUBCO earned a massive Rs12.03 billion as share of profits from associates and ventures in FY23, an increase of over 289% on a yearly basis.

HUBCO has a combined installed power generation capacity of 3,581 MW. The IPP through its subsidiaries operates in various business sectors including oil and gas, mining and industrial operations and maintenance services.