HUBC Q4FY25 Result Preview, Lower Earnings Ahead, Dividend Still on the Cards

The Hub Power Company Limited (HUBC) is set to announce its financial results for the final quarter of FY25, and the numbers suggest a weaker performance compared to last year.

Lower profits expected

For the quarter, HUBC’s profit after tax (PAT) is expected at PKR 13.2 billion (EPS: PKR 9.0), down 37% year-on-year. This decline is mainly because:

• The base power plant is no longer contributing to revenue.
• Lower electricity tariffs from Narowal Energy Limited (NEL) reduced earnings.
• Lower profits from the China Power Hub Generation Company (CPHGC) also played a role.

Sales drop sharply

Quarterly sales are expected at PKR 18.3 billion, a steep 48% fall from last year. However, compared to the previous quarter, sales are up 7% thanks to a slight recovery in electricity demand.

Other key factors

• Associate Earnings: Expected at PKR 10.1 billion (-31% YoY) due to weaker CPHGC performance.
• Finance Costs: Down 56% YoY to PKR 2.7 billion, helped by better liquidity, debt repayments, and lower interest rates.
• Future Borrowings: May rise as HUBC invests in its EV manufacturing plant.

Dividend outlook

HUBC is expected to announce a final cash dividend of PKR 7 per share, taking the full-year payout to PKR 12/sh, lower than last year’s PKR 20/sh.

Full-year picture

For FY25, HUBC’s profits are expected to fall 31% to PKR 51.9 billion (EPS: PKR 35.5), with revenues dropping 36%.

HUBC is facing a year of lower earnings due to reduced contributions from key assets and falling tariffs, but cost savings and lower interest expenses are providing some cushion. The dividend remains intact, though smaller than last year.

Source: Taurus Securities Limited

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →