Karachi, November 3, 2025 – The Hub Power Company Limited (Hubco) has officially announced the Project Completion Date (PCD) for its two major Thar coal-based power ventures — Thar Energy Limited (TEL) and ThalNova Power Thar (Private) Limited (TNPTL) — achieved on October 31, 2025, as per the terms of their project financing agreements.
Hubco holds a 60% direct equity stake in TEL and an indirect 38.3% share in TNPTL through its wholly owned subsidiary, HPHL. Meanwhile, Fauji Fertilizer Company (FFC) owns a 30% stake in TEL, and Thal Limited holds 26% in TNPTL. Both power plants, with a combined generation capacity of 660 MW (2×330 MW), are part of the China–Pakistan Economic Corridor (CPEC)’s priority energy projects.
Following the achievement of PCD, TEL and TNPTL are now eligible to declare dividends once they generate sufficient cash flows, benefiting Hubco, FFC, and Thal Limited shareholders. Management has clarified that no “true-up” adjustment is required before the PCD for either project. Both companies are expected to announce semiannual dividends in December and May, potentially exceeding annual return on equity (ROE) due to accumulated reserves.
According to Arif Habib Limited, Hubco may receive dividends of PKR 8 billion (FY26) and PKR 8.5 billion (FY27) from TEL, while TNPTL could contribute PKR 4.9 billion (FY26) and PKR 5.6 billion (FY27) — translating into a total dividend per share (DPS) of PKR 15.0–17.0 for FY26–27.
Hubco also confirmed the extension of Standby Letters of Credit (SBLC) for TEL and TNPTL until 2034, covering disputed HVDC-related liquidated damages and potential debt servicing shortfalls, with no material cash outflow expected.