HUBCO announces earnings of Rs1.07 per share during 1QFY12

ISLAMABAD: Hub Power Company (HUBCO) announced unconsolidated earnings of Rs1.07 per share during 1QFY12, almost flat versus EPS of Rs1.1 last year.

Despite higher return on its old plant, we believe that the company has incurred losses on its new Narowal project since new tariff (at COD) has not been approved by Nepra, which will incorporate exchange rate fluctuations and cost over runs.

As compared to 4QFY11, net profit of the company increased by 8%. Going forward in FY12, production bonuses, profits from Narowal projects (including reversals), and efficiency gains from new plant would be the major earnings driver for the company.

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