Hub Power and Nishat Power Report Mixed Earnings for 2QFY25

Karachi: Hub Power Company Ltd (HUBC) and Nishat Power Limited (NPL) have released their earnings previews for the second quarter of fiscal year 2025, revealing contrasting financial performances. HUBC reported a decrease in net profits, while NPL saw an increase in earnings.

According to a statement by AKD Securities Limited, HUBC is expected to post a net profit after tax (NPAT) of PKR11.8 billion, translating to an earnings per share (EPS) of PKR9.07 for the quarter. This marks a 23% decline year-on-year and a 39% drop quarter-on-quarter. The decrease is largely attributed to the termination of the Power Purchase Agreement for its base plant, leading to a lower revenue of PKR17.2 billion.

In contrast, NPL is anticipated to report a NPAT of PKR982 million, with an EPS of PKR2.77, reflecting a 14% year-on-year increase. This growth is driven by higher finance income, boosted by substantial cash and short-term investments.

HUBC’s performance was impacted by subdued power offtakes from its RFO and imported coal-based generators, though indigenous coal IPPs benefited from a favorable position in NTDC’s merit order. NPL, on the other hand, experienced low plant utilization due to decreased demand for RFO-based power during winter.

Despite HUBC’s lower profits, its share of profit from associates is expected to remain stable at PKR10.7 billion. Meanwhile, NPL is projected to announce a half-year cash dividend of PKR2.0 per share, doubling its cumulative payout compared to the previous year.

Both companies have maintained a ‘BUY’ recommendation, with HUBC’s target price set at PKR151 per share and NPL’s at PKR46 per share, highlighting their potential for future growth.