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HUBC, PSO & APL 2QFY24E Previews ,(AKD Daily Jan 31, 2024)

HUBC – 2QFY24E earnings to clock in at PkR14.33/sh: We expect Hub Power Company Limited 
(HUBC) to post NPAT of PkR18.58bn (EPS: PkR14.33) in the second quarter of FY24, up 9%/40% 
on QoQ/YoY basis. The aforementioned increase in earnings on a quarterly basis is primarily 
attributed to higher gross margins, resulting from the non-utilization of fuel oil-based plants 
(Narowal and HUBCO-base utilization: 1.5%/0% during 2QFY24). Generation profile of the company’s power plants were as follows: CPHGC (64Gwh, ↓80%QoQ), TEL (572Gwh, ↓6%QoQ), 
NEL (7Gwh, ↓93%QoQ), TNPTL (436Gwh, ↓25%QoQ) and LEL (139Gwh, ↑1.2xQoQ). Overall, 
we expect company to post revenue of PkR30.0bn (-11%YoY/+20% QoQ), reflecting a decline 
due to reduced generation on a consolidated basis (total HUBC utilization: 15% during 2QFY24 
vs. 21% in the quarter before).

PSO – LAT to clock in at PkR6.73bn (LPS: PkR14.35) in 2QFY24E: Pakistan State Oil (PSO) is 
expected to announce its 2QFY24E financial result sometime in February, where we expect the 
company to post LAT of PkR6.73bn (LPS: PkR14.35). Like most players in the sectors, PSO is also 
expected to deal with substantial losses on the back of falling ex-refinery prices, majorly due to 
declining international gasoline/gasoil prices, resulting in local MS/HSD prices being down by 
25%/26% from their previous quarter closings. We expect the company to record inventory 
losses of ~PkR10.5bn (PkR28.9/sh) for 2QFY24E, subsequently resulting in gross margins for the 
period to end at 1.10%.

APL – PAT to clock in at PkR1.37bn (EPS: PkR11.1) in 2QFY24E: Attock Petroleum Limited (APL) 
is expected to announce its 2QFY24E financial results on Monday, where we expect the company to post PAT of PkR1.37bn (EPS: PkR11.1), changing by -74%YoY/+10%YoY. The quarterly decline is majorly attributable to falling ex-refinery prices over the last quarter alongside slightly 
lower volumes (down 8%QoQ) during the outgoing period. We expect the company to record 
inventory losses of ~PkR1.94bn (PkR15.6/sh) for the period, subsequently resulting in gross margins for the quarter to end at 1.3%. On the topline front, company’s revenue is expected to clock 
in at PkR135bn, changing by -1%QoQ/+19%YoY, as volumetric offtakes for the quarter fell by 
8%/5% QoQ/YoY.