Karachi: The Hub Power Company Ltd (HUBC) reported a 5% year-on-year decline in its consolidated earnings per share for the first half of the fiscal year 2026 to Rs17.16. This drop is attributed primarily to a 28% reduction in revenue, following the early termination of the Hubco Power Purchase Agreement (PPA) and renegotiation of the Narowal Energy Ltd PPA. The company's management provided this update during an analyst briefing focused on its recent financial performance and future outlook.

According to JS Global, HUBC is focusing on diversifying its portfolio to mitigate the impact of current financial challenges. A key development in this strategy is the BYD CKD assembly plant, which is expected to achieve commercial operations by the end of the current fiscal year. The plant, with an annual production capacity of 25,000 units, represents a significant investment of US$155 million (Rs43.4 billion), with US$90 million (Rs25.2 billion) already financed.

The management also addressed the provisioning for super tax, noting that it will primarily affect cash outflows. The anticipated cash impact amounts to approximately Rs2.5 billion in the short term, with an additional Rs4-5 billion expected over a longer period.