Karachi: Hub Power Company (HUBC) held a corporate briefing to discuss its financial results for FY26 and future strategies. The company addressed several key topics, including regulatory issues, dividend declarations, and significant new projects in energy and mining sectors.
According to JS Global, HUBC's management provided insights into the regulatory challenges surrounding the CPHGC true-up tariff. The management argued that the tariff introduced by NEPRA was expected to require minimal adjustments, referencing past projects like the Sahiwal power plant. HUBC maintains that NEPRA's current stance is legally indefensible, and the matter is currently in appellate court. The company also noted that its subsidiaries are expected to declare healthy dividends, which will be recorded in the second half of the fiscal year.
HUBC's overdue receivables remain consistent with previous reports, totaling Rs86.5 billion across various projects. The company also announced plans to bring a BYD plant online by the second half of 2026, with an initial production capacity of 25,000 units annually, scalable to 50,000. This project involves an investment of $150 million, with $90 million in project financing. HUBC is targeting a 30% market share in the combined EV/PHEV segment by 2030.
In addition to its electric vehicle initiatives, HUBC is expanding its EV charging infrastructure, with 24 DC fast-charging sites already operational along the Karachi-Peshawar motorway. The company plans to increase the number of charging stations and reduce the spacing between them for enhanced accessibility.
Further, HUBC is exploring the potential of its base plant site for an oil storage project in collaboration with Middle Eastern entities. The company has also commissioned a feasibility study for an aluminium smelter, emphasizing the need for an energy incentive framework in discussions with the government. In mining, HUBC is engaged in promising mineral exploration in Balochistan and has completed a scoping study for lithium, awaiting harmonized mining policies before proceeding.
Overall, HUBC reiterated their optimistic outlook with a maintained buy stance, underscoring confidence in their strategic direction and forthcoming projects.