Karachi: In a recent development, HUBC has resolved to initiate a ‘Negotiated Settlement Agreement’ with relevant authorities following an emergency board meeting. This decision emerges amidst ongoing financial discussions involving overdue payments and liabilities.

According to AKD Securities Limited, the company is set to receive approximately PkR39 billion in overdue capacity payments, calculated at PkR30 per share. Simultaneously, the authorities will adjust HUBC’s receivable Late Payment Surcharges (LPS) of PkR25.6 billion against the PSO’s trade payables, which stand at PkR28.1 billion, as stipulated in the terms of the settlement.

Further analysis by AKD Securities suggests a significant revision in HUBC’s financial projections. The blended valuation of the company for June 2025 is now estimated at PkR116 per share, a notable decrease from the previous estimate of PkR170 per share. This adjustment reflects the financial impact of the negotiated terms and the anticipated challenges in fiscal management.

The revised valuation also impacts HUBC’s capacity to manage distributions, with a severe compromise expected in its ability to provide payouts. Dividend per share (DPS) projections for fiscal years 2025 and 2026 have been adjusted to PkR5 and PkR15 respectively, indicating a cautious fiscal approach in the coming years.