Home Pakistan HUBCO, Pakistan’s Largest IPP, Reports Rs. 20.3 Billion Profit in Three Months

HUBCO, Pakistan’s Largest IPP, Reports Rs. 20.3 Billion Profit in Three Months

by Ammnah

Hub Power Company (HUBCO), Pakistan’s largest independent power producer (IPP), has reported an 11% increase in profits for the first quarter of the fiscal year 2025, reaching Rs20.31 billion. Despite a slight decline in revenue, the company saw its earnings per share (EPS) rise to Rs14.74, up from Rs13.17 in the same period last year.

Revenue from HUBCO’s customer contracts saw a decrease of 5%, totaling Rs32.04 billion. However, the company effectively managed costs, with the cost of revenue falling by 18%. This reduction in expenses boosted the company’s gross profit by 8%, bringing it to Rs18.05 billion and resulting in a strong gross profit margin of 56%.

Other income also saw significant growth, rising by 265% and contributing positively to HUBCO’s overall financial performance. Additionally, the company benefited from a reduction in finance costs, which dropped by 23%, further supporting its profitability.

In a recent development, HUBCO has initiated a settlement agreement with the Pakistani government regarding its Lasbella power project, which has a generation capacity of 1,292 MW. This agreement aims to address regulatory and operational matters related to the project, potentially enhancing HUBCO’s future operations.

Overall, HUBCO’s performance highlights its effective cost management strategies and focus on strengthening its position in Pakistan’s power sector, contributing positively to the country’s energy landscape and economy.

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