29 January 2004	Thursday	06 Zilhaj 1424

KARACHI, Jan 28: The Board of Directors of Hub Power Company (Hubco) will consider an interim dividend at their next meeting to be held in early March. An announcement to this effect was made in a statement of the company here on Wednesday.

It said the Hubco board met here on Wednesday and approved the un-audited financial results for the company's half-year ended December 31, 2003. It was also decided in accordance with the requirements under listing regulation 14.1 requiring companies on cleared list (future contracts) to provide the Karachi Stock Exchange with a two-month notice period in respect of book closure. The share transfer book of the company will remain closed from April 5 to April 16 (both days inclusive), the announcement added.

PROFITS: Hubco reported lower first-half profits on Wednesday due to a yearly tariff cut and a firmer rupee. Net profit after tax for the six months through December fell 10.4 per cent to Rs2.58 billion ($45 million) from Rs2.88 billion in the same period a year ago, it said.

This was within the range of Rs2.5 billion to Rs2.6 billion forecast by analysts, who expected full-year earnings of Rs5.5 billion, compared with Rs6.1 billion in the previous fiscal year.

Earnings per share were Rs2.23, compared with Rs2.49 in the same period a year earlier. The company said state-run Water and Power Development Authority - its only electricity buyer - purchased less electricity during the last quarter due to an increase in hydro-electric power generation in the country.

"During the quarter (Sept to Dec) the power plant was dispatched at a low load factor, mainly due to higher rainfall during the monsoon season resulting in increased availability of hydel power in the country," the statement said.

Twenty-nine per cent of all power generated in Pakistan at present is hydro-based. The results had little impact on shares of Hubco, which is 20.7 per cent owned by Britain's International Power Plc.

Analysts said the lower profit was mainly due to the company's tariff structure and a 2pc increase in the rupee against the dollar in the past year, which hit its US dollar-based earnings.-APP/Reuters