Hub Power Company Limited (HUBC) reported earnings per share of PKR 38.26 for FY26, compared to earnings per share of PKR 35.56 in FY25. Furthermore, in 2QCY26, the company reported earnings per share of PKR 12.77, compared to earnings per share of PKR 9.16 in the same period last year (SPLY). CPHGC has witnessed higher dispatch load factors amid the recent Middle East geopolitical tensions, which constrained domestic RLNG availability.
NEPRA’s subsequent attempts to reinterpret the relevant contracts are being challenged by CPHGC on the grounds of regulatory consistency and contractual precedence. The indexation dispute is currently under consideration by the Appellate Tribunal. While the matter remains sub judice, management remains confident of a favorable outcome. The current accounting treatment has also been signed off by Big Four auditors.
TEL and Thal Nova both achieved their formal Project Completion Date during the period, fulfilling a key regulatory milestone that enables them to distribute cash dividends. Laraib Energy operates an 84 MW downstream hydel facility located at the Mangla Dam in Mirpur.
Generation is primarily dictated by water release requirements for irrigation. While the plant has historically achieved load factors of up to 70%, its benchmark load factor stands at around 64%. Narowal recorded a higher load factor during the period, primarily to compensate for RLNG supply constraints in central Pakistan.
Mega Motor achieved financial close for its BYD assembly plant in January 2026, although construction activity and capital deployment had commenced earlier. The plant will have an initial production capacity of approximately 25,000 units, with commercial operations on track for the second half of 2026.
The group is targeting a 30% market share in Pakistan’s NEV segment by 2030. HUBC has deployed 24 DC fast chargers along major motorway routes connecting Karachi with Peshawar and Nathia Gali, with an average spacing of approximately 200 km. The group is currently working to deploy additional chargers to reduce the spacing to 150 km and, eventually, to around 100 km.
HUBC’s pricing has remained highly competitive, even at the CBU stage, supporting the group’s positioning in the local market. Prime Energy continues to operate the Badra, Kadanwari, Bhit and Sawan gas fields. The company has also recently secured two additional onshore blocks, Sukkur and Naushahro Feroze. Of the 20 shallow offshore blocks offered by the government, Prime participated in four and secured the lead operator role in one block, Sapat Bandar.
The company is also evaluating opportunities in offshore fields across West African basins while testing new geological formations in Pakistan’s Middle Indus region. Arc Metals has completed its first reserve report for its Balochistan mining block. Drilling activities remain ongoing to establish the minimum resource threshold required to advance the project toward a bankable feasibility study.
However, the timeline has experienced minor delays due to local security conditions. The company has also completed a preliminary scoping study on domestic lithium reserves located in the north and northwest of Pakistan. Initial results were encouraging, and the company intends to apply for a formal lithium block once national mining policies are harmonized. Regarding the aluminium smelter project, significant progress has been made, with a feasibility study commissioned through a premier global institution.
HUBC is also engaging with the federal government to establish competitive power and industrial tariffs for energy intensive, export-oriented industries. Regarding the SPM oil terminal, HUBC remains engaged with large Middle Eastern oil and gas companies as well as PSO on a potential oil storage project. The existing storage tanks at the site are considered more suitable for refined petroleum products than for crude oil. On data centres, management highlighted that it believes the underlying business model is better suited to specialized service providers.
The company approves a development well program on an annual basis. To offset natural production declines, HUBC continues to pursue new onshore exploration blocks while simultaneously evaluating opportunities in offshore acreage. Current overdue receivables stand at approximately PKR 65bn for CPHGC, PKR 8.3bn for Thar Energy, PKR 7.5bn for ThalNova, PKR 5bn for Laraib Energy and PKR 1bn for Narowal Energy.
The E&P business also has a long gestation period, with the cycle from initial seismic studies and exploration drilling to development and commercial production typically taking 6–8 years, even on a fast track basis. +92 213 529 3054-60 www.chasesecurities.com Page 2 of 4 research@chasesecurities.
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