Hubco announces final cash dividend of Rs5/share

Web DeskWeb Editor

30th Aug, 2021. 07:15 pm

KARACHI: The Hub Power Company (Hubco) has declared a final cash dividend of Rs5/share for the year ended June 30, 2021, which is in addition to the interim dividend of Rs7/share already paid to the shareholders, a bourse filing said.

Hubco posted a net profit of Rs34.83 billion, translating into the earnings per share (EPS) of Rs25.97 for FY21, up 33.5 per cent, compared with the profit of Rs26.06 billion and the EPS of Rs19.31 in the previous year.

“The rise in [the] earnings is mainly due to a 34 per cent decline in the finance cost,” an analyst at Arif Habib Limited said.

The company recorded net sales of Rs54.63 billion for the year under review, up 13.04 per cent, compared with the sales of Rs48.3 billion in FY20.

During the fourth quarter of FY21 ended June 30, 2021, the net sales witnessed an increase of 34 per cent to Rs15.8 billion due to a 101 per cent increase in dispatches to 367GWh.

“During [the fourth quarter of FY21, gross margins of the company decreased 16pps YoY to 56 per cent. The decline in margins is mainly attributable to 9 per cent rupee appreciation and higher load factor during the quarter under review.”

During the fourth quarter of FY21, the company recognised share of profit from China Power Hub Generation Company (CPHGC) of Rs3.818 billion, down 19 per cent mainly due to 9 per cent rupee appreciation.

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