KARACHI: Hub Power Company (HUBC) convened its corporate briefing today to discuss its financial results for the first half of fiscal year 2026 and outline its future strategic plans. The briefing highlighted key financial outcomes, including dividends from Thar-based plants and ongoing projects in the mining and automotive sectors.
According to JS Global, HUBC announced dividends from its Thar Energy Limited (TEL) and ThalNova plants, amounting to Rs4.9 billion from ThalNova and Rs0.7 billion from TEL in the second quarter of FY26. A significant dividend from TEL is anticipated in the third quarter. The company also reported overdue receivables, which stand at Rs68 billion for CPHGC, Rs8 billion for TEL, Rs7 billion for ThalNova, Rs6 billion for Laraib, and Rs1.4 billion for Narowal.
The briefing detailed the plant load factors for its operations, with TEL and ThalNova recording 68% and 60%, respectively. Other plants such as Laraib, CPHGC, and Narowal reported lower load factors of 32%, 6%, and 3%, respectively. Management addressed the impact of the super tax, noting provisions have been made, with an immediate payment of Rs2.5 billion required and an additional Rs4-5 billion due in the second half of the year.
In the realm of automotive projects, HUBC achieved financial close for its CKD car assembly plant in Gharo, supported by British International Investment and other financial entities. The plant, expected to commence operations in the latter half of 2026, will have a production capacity of 25,000 units annually, with a total project cost of $150 million.
HUBC is also expanding its electric vehicle (EV) charging infrastructure, with 16 sites already operational and plans to extend coverage along the Karachi to Peshawar motorway. Partnerships with major oil marketing companies, including PSO, APL, and PARCO, have been established, with further discussions ongoing.
Regarding the Sindh Engro Coal Mining Company, HUBC expects Phase III to be operational by the end of the year. The company is exploring additional opportunities at its base plant site, including an oil terminal project and an aluminum smelter, leveraging existing infrastructure like water resources, jetty access, and electricity transmission.
In mining, HUBC is engaged through Ark Metals, with initial studies indicating potential. However, further feasibility studies are necessary before advancing these projects. The company reaffirmed its commitment to maintaining healthy dividend payouts and reiterated a positive outlook with a buy stance on its stock, trading at a FY26E/27F PE of 5.9/5.4x.
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