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Karachi: Hub Power Company Limited (HUBC) is scheduled to announce its 9MFY12 financial results on April 25, 2012.
According to Arif Habib Limited expects that the company will earn profit after tax (PAT) of PKR 4,727mn (EPS: PKR 4.08) compared to PKR 4,284mn (EPS: PKR 3.70) in the corresponding period last year, projecting a 10% YoY jump. This improvement in earnings is mainly attributable to 3.5% devaluation of PKR against USD coupled with 8.5% increase in PCE component during the period. However, 3 times higher financial charges due to the interest on loan acquired to finance equity portion of Narowal project, penal interest charged by Pakistan State Oil on late fuel payments and increased short term borrowing due to the circular debt has affected the profitability of the company. In 3QFY12, Arif Habib Limited expects company to earn PAT of PKR 1,729mn as compared to PKR 1,757mn earned in 2QFY12 projecting a decline of 2% QoQ mainly due to higher maintenance and financial costs.
| Financial Highlights (PKR million) | 3QFY12E | 2QFY12 | QoQ | 9MFY12 | 9MFY11 | YoY |
| Turnover | 39,698 | 38,730 | 2% | 119,146 | 80,328 | 48% |
| Operating Cost | 35,926 | 34,951 | 3% | 108,504 | 73,845 | 47% |
| Gross Profits | 3,771 | 3,779 | 0% | 10,642 | 6,483 | 64% |
| Other Income | 17 | 16 | 5% | 48 | 16 204% | |
| General and Admin Expenses | 103 | 100 | 3% | 290 | 314 | -8% |
| Finance Cost | 1,957 | 1,938 | 1% | 5,673 | 1,900 | 199% |
| PAT | 1,729 | 1,757 | -2% | 4,727 | 4,284 | 10% |
| EPS | 1.49 | 1.52 | -2% | 4.08 | 3.70 | 10% |
| Sources: Company Financial and AHL Research | ||||||
NPL: Company is expected to earn PKR 3.36/share in 9MFY12
Nishat Power Limited (NPL) will be posting its 9MFY12 financial result on April 25, 2012. Arif Habib Limited’s estimates for the company’s profitability for the period work out to PKR 1,189mn (EPS: PKR 3.36/share) against PKR 1,828mn (EPS: PKR 5.16/share) in 9MFY11, depicting a decline of 35% YoY. In 9MFY11 the company booked an incremental revenue of PKR 579mn (PKR 1.76/share) as NEPRA announced post COD tariff. On QoQ basis, Arif Habib Limited expects the company’s net income to decline by 18.7% to PKR 340mn (EPS: PKR 0.96) in 3QFY12 as against of PKR 418mn (EPS: PKR1.18) in 2QFY12. This decline in earnings is attributable to lower load factor and higher maintenance cost incurred during the period. However, Arif Habib Limited expects fuel savings to contribute PKR 0.16/share at an assumed thermal efficiency of 46.5% in 3QFY12.
| Financial Highlights (PKR million) 3QFY11E 2QFY11 %Chg. 9MFY12E 9MFY11 %Chg. | ||||||
| Sales | 3,792 | 4,213 | -10.0% | 14,269 | 15,195 | -6.1% |
| Cost of Sales | 2,654 | 3,036 | -12.6% | 10,761 | 11,148 | -3.5% |
| Gross Profit | 1,138 | 1,178 | -3.4% | 3,508 | 4,047 | -13.3% |
| Administrative Expenses | 21 | 20 | 5.0% | 60 | 48 | 24.5% |
| Other Operating Income | 15 | 16 | -5.0% | 36 | 30 | 18.8% |
| Profit from Operations | 1,132 | 1,174 | -3.6% | 3,484 | 4,029 | -13.5% |
| Finance Cost | 787 | 750 | 5.0% | 2,284 | 2,190 | 4.2% |
| Profit before Tax | 344 | 424 | -18.7% | 1,201 | 1,839 | -34.7% |
| Profit after Tax | 340 | 418 | -18.7% | 1,189 | 1,828 | -35.0% |
| Earnings per share | 0.96 | 1.18 | -18.7% | 3.36 | 5.16 | -35.0% |
| Source: AHL Research | ||||||