KARACHI, Oct 24: The Hub Power Company Limited (Hubco) announced financial results for first quarter ended September 30, 2003, posting net profit of Rs1,276 million. The profit was 13 per cent lower than Rs1,474 million in the corresponding quarter of the previous year.

The board meeting was held on Thursday, but results were announced at the stock exchange in the morning on Friday. No interim dividend was declared in the meeting. The market greeted the results with an increase of 35 paisa in price of Hubco stock which closed at Rs35.05 on Friday.

Turnover for the quarter was down 15 per cent to Rs3,295 million, from Rs3,879 million in the similar period of 2002. In the quarterly report to the shareholders, the directors stated that the net profit in the corresponding quarter last year was higher mainly due to an adjustment in Operation & Maintenance fee and higher interest income earned in that period.

The company stated that the Government of Pakistan was understood to have approved a plan by which electricity generated by Hubco would be provided to KESC. “The government’s Executive Committee of the National Economic Council (Ecnec) approved NTDC-KESC project consisting of two transmission lines and the construction of a grid station which will enable Hubco generated electricity to be directly supplied to KESC by Wapda”, said Vince R.Harris, the company CEO.

He stated that during the quarter, the power plant had generated 203 GWh of electricity resulting in a load factor of 8 per cent with an availability of 76 per cent. The lower load factor was mainly due to better than expected rainfall during the monsoon season, resulting in high availability of hydel power in the country.

Directors stated that in September, the second replacement Toshiba Generator Transformer (GT) had arrived at Site. The first replacement GT had been at site since February. Efforts were said to be in hand to ensure that both the Toshiba Generator Transformers (GTs) were installed in the next couple of months to replace the original Coemsa GTs.

During the quarter, the company was stated to have received the Generation Licence from National Electric Power Regulatory Authority (Nepra). That would enable the company to meet its lenders’ requirements to operate the plant under formalized licensing arrangement in Pakistan.

“The final dividend of Rs2.10 per share recommended by the Board in its meeting on Sept 4, 2003 and approved by the shareholders for the year ended June 30, 2003 in the AGM on Oct 15, 2003 is being dispatched today”, the company concluded.