In 6MFY25, HUBC reported a net profit of PKR 13.60 billion (EPS: PKR 10.49), down 9% from PKR 14.92 billion (EPS: PKR 11.50) in the previous year, due to lower revenue from PPA termination. However, finance costs declined due to settlement, and subsidiary dividends increased.
Associate income fell due to a lower exchange rate. Hub Power Station’s PPA expired early on October 1, 2024. Under a settlement, HUBC received PKR 36.5 billion from CPPA(G), which also assumed all PSO obligations. NEL’s tariff was revised to a ‘Hybrid Take and Pay’ model with a 35% minimum take-or-pay, effective November 1, 2024, though the PPA Amendment is pending. Management reported that plants will continue to operate as back-plants during peak months at a higher load factor. HUBC has cleared all long-term debt. Load factors in 1HFY24 were: NEL – 1%, LEL – 51%, CPHGC – 5%, TEL – 58%, TNPTL – 68%. In 1HFY24, availability was: Narowal – 99%, Laraib – 99%, CPHGC – 100%, TEL – 88%, TNPTL – 86%. MMC launched BYD at PAPS 2024, with deliveries starting this week.
The Mega Motor Plant’s capex is USD 150-270 million, structured as a 50:50 joint venture. BYD operations will begin in 1HFY26. HUBC is setting up four 3S dealerships— two in Karachi, one in Lahore, and one in Islamabad—and an assembly plant in Sindh, operational by 2026. A showroom in Metropole opens next week, while Lahore’s flagship dealership starts after Eid. Phase two targets 100,000 units, focusing on Asia-Pacific. Current BYD’s capacity will be 50,000 units per double shift. HUBCO Green is developing EV charging stations nationwide.
The first station launched at Ocean Mall, Karachi, with four operational so far. HUBC signed an agreement with PSO to expand charging stations every 50-100 km across Pakistan and is in talks with Shell Pakistan, Parco Gunvor, and others. By March/April, 20 stations are expected in Karachi, Lahore, and Islamabad. Receivables stand at PKR 9 billion (Narowal), PKR 6 billion (Laraib), PKR 64 billion (China Power), PKR 6 billion (TEL), and PKR 5 billion (TNPTL). Management expects steady payments as circular debt remains unchanged. TEL’s dividend is expected soon, subject to lender conditions.
HUBC acquired a 50% stake in ENI, participating in local bidding and evaluating offshore assets for diversification also. Discussions are ongoing with global aluminum smelting firms. SECMC Phase III COD is expected late this year or early next year. Going forward, management plans to expand into the renewable energy sector, evaluating opportunities in solar PV and battery energy storage systems (BESS).
Additionally, through a joint venture with Ark Metals (Pvt.) Ltd., the company aims to explore and develop mineral mines in Pakistan. Management is also pursuing E&P opportunities both locally and internationally through its JV company, Prime. SECMC’s transaction is expected to close in 3-4 months. The future dividend policy is subject to investments in key growth areas.
Important Disclosures
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