Karachi, December 5, 2024 – Hub Power Company Limited (HUBCO) has entered into a significant strategic partnership with Mega Conglomerate (Private) Limited (MCPL) by signing a shareholders’ agreement. The development was formally disclosed in a notice to the Pakistan Stock Exchange (PSX).
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HUBCO Plans to Install EV Charging Infrastructure Across Pakistan
Karachi, October 31, 2024 – Hub Power Company Limited (HUBCO) has announced its groundbreaking initiative to install Electric Vehicle (EV) charging infrastructure throughout Pakistan. This development marks a significant step towards enhancing the country’s electric mobility landscape and reducing its carbon footprint.
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BYD Enters Pakistan’s Electric Vehicle Market
BYD, a prominent Chinese electric vehicle (EV) manufacturer, has partnered with HUBCO to enter Pakistan’s expanding EV market.
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HUBCO Enters Electric Vehicle Business in Pakistan
Karachi, June 21, 2024 – Hub Power Company Limited (HUBCO) announced on Friday its foray into the electric vehicle (EV) business in Pakistan. The company communicated this strategic decision to the Pakistan Stock Exchange (PSX), revealing that its subsidiary, Hub Power Holding Company, will spearhead this venture through its associated entity, Mega Motor Company (Private) Limited, in collaboration with BYD Auto Industry Company.
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Hub Power Company Expands Stake in SECMC
Karachi, February 17, 2024 – The Hub Power Company Limited (Hubco) has taken a strategic step towards enhancing its presence in the energy sector by entering into a definitive agreement to acquire an additional 9.5 percent stake in the Sindh Engro Coal Mining Company Limited (SECMC).
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JV formed for 330MW coal-fired power generation under CPEC
KARACHI: A joint venture (JV) has been formed for establishing a 330MW power generation from Thar Coal under China Pakistan Economic Corridor (CPEC).
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China Power serves encashment notice as HUBCO standby letter of credit expires
KARACHI: China Power Hub Generation Company (CPHGC) on Wednesday served an encashment notice to Hub Power Company (HUBCO) under standby letter of credit (SBLC), which expires today i.e. November 23, 2022.
According to a notice of Pakistan Stock Exchange (PSX), an encashment notice has been served by China Power Hub Generation Company (CPHGC) on November 23, 2022, under the Standby Letter of Credit (SBLC) – which expires today- on the issuing bank.
READ MORE: Industries threaten mass protest against gas supply shutdown
To recall, the Hub Power Company (HUBC) had provided SBLC for an aggregate amount of $150 million to guarantee an investment in the form of equity or subordinated debt to satisfy the funding shortfall, if any, in CPHGC;
a) To achieve completion of the project to the satisfaction of the lenders; and
b) To repay all principal, interest, fees or any other amounts that may fall due by CPHGC under the finance documents to the finance parties.
READ MORE: SSGC stops gas supply to industries under load management plan
Moreover, shares held by Hub Power Holding Limited (HPHL) in CPHGC were pledged in favor of the security trustee in order to secure the company and HPHL’s obligations under the financing documents of CPHGC.
Analysts at Arif Habib Limited said HUBCO will have to provide a new SBLC within ten (10) days from the date of the encashment notice.
READ MORE: Pakistan has sufficient stock of fuel to meet domestic demand
In case of non-issuance of new SBLC, banks will disburse $150 million to CPHGC, as per the agreement. In this case, a liability (we are assuming subordinated debt) of the same amount will be booked on the books of HUBCO against a receivable from CPHGC.
We believe, CPHGC will repay the SBLC amount to HUBCO after the project completion date (PCD). To recall, CPHGC has not achieved PCD yet.
READ MORE: ECC approves raising petroleum levy to Rs50 per liter on RON 95
In order to calculate the financial impact of the mark-up differential between the amount paid by HUBC to the banks and the amount charged from CPHGC along with the share of profit from associate, we have run a sensitivity assuming different spreads on mark-up charged from CPHGC by HUBC, as illustrated in the Exhibit below.
Our base case scenario assumes zero spread as a company cannot charge a markup lower than its own cost from its associate on a subordinated loan, as per regulations, the analysts said.
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HUBCO declares 25% decline in half-year profit
KARACHI: Hub Power Company Limited (HUBCO) (PSX: HUBC on Tuesday declared 25 per cent decline in net profit for the half year ended December 31, 2021.
According to consolidated financial results submitted to the Pakistan Stock Exchange (PSX), the profit after tax of the company fell to Rs12.72 billion during July – December 2021 as compared with Rs16.89 billion in the corresponding period of the last fiscal year.
READ MORE: Kamran Kamal appointed HUBCO chief
HUBCO is the first and largest Independent Power Producer (IPP) in the country with a combined installed power generation capacity of 2920 MW, according to company’s website.
The board of directors of the company in a meeting held on February 15, 2022 reviewed and approved the financial results for the period December 31, 2021.
The board has not recommended any cash dividend, bonus shares or right shares for the period.
The fall in profit may be attributed to slump in share of profit from associations and joint venture, which declined to Rs830.74 million for the half year ended December 31, 2021 as compared with Rs7.6 billion in the corresponding period of the last fiscal year.
According to the consolidated results, the total turnover of the company was at Rs46.27 billion for the period under review as compared with Rs26.79 billion in the same period of the last fiscal year.
The gross profit of the company was flat at Rs15.81 billion for July – December 2021 as compared with Rs15.87 billion in the corresponding period of the last fiscal year.
Operating expenses of the company fell significantly to Rs47.48 million for the half year ended December 31, 2021 as compared with Rs236.71 million in the same period of the last year.
HUBCO announced Rs9.41 as earnings per share for the period July – December 2021 as compared with Rs12.60 EPS in the same period of the last year.
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Kamran Kamal appointed HUBCO chief
KARACHI: Hubco, Pakistan’s largest IPP has announced the appointment of Kamran Kamal as its new CEO. Kamran has succeeded Khalid Mansoor who led the company for eight years, a statement said on Wednesday.
Kamran has already been a part of Hubco for the past 6 years as the CEO of Laraib Energy Limited, a hydel subsidiary of the Company. Previously, he held the position of Vice President China Power Hub Generation Company (CPHGC), a joint venture between HUBCO & China Power International Holding (CPIH). Kamran’s appointment as the new CEO (from within the Company) is a testament of confidence of Hubco’s shareholders in its home-grown talent.
“Pakistan’s energy landscape is full of possibilities. HUBCO’s unparalleled technical expertise, pioneering approach to business and strategic geographical presence provides us with a unique set of capabilities to realize these possibilities for our country said Kamran Kamal. I am excited to lead HUBCO in transforming our approach to creating long-term shared value without ever losing sight of the future of our society, Kamran added.
Kamran is a competent leader with over 18 years of progressive responsibility and leadership experience in energy, infrastructure, commodities, business development and strategy. He has been responsible for large capital projects, building organizational capabilities and for overall business delivery in both management, executive and Board roles. Kamran holds a Masters from Harvard and a BSE in Electrical Engineering from Georgia Tech, USA.
Previously, Kamran was Commodities Trade Head, Engro EXIMP FZE where he managed Fertiliser, Coal, Oilseeds and Sugar Trading Portfolio. He led the company’s growth into new geographies and commodities portfolio. During his tenure at Engro, Kamran was also involved in major energy & infrastructure projects including Thar Coal Mining & Power Plant, LNG Floating terminal and RLNG based power plant.
Under Kamran’s leadership HUBCO will focus on retaining its position as a market leader by focusing on renewables, merchant market model for the Power Sector and diversification into sustainable solutions. Kamran’s understanding of the Power Sector, regulatory environment and his experience of closely working with key external stakeholders will strengthen Hubco’s standing in the power sector.
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Hubco acquires Eni operations in Pakistan
KARACHI: The Hub Power Holding Limited on Monday announced to acquire all upstream operations of Eni in Pakistan.
In an information shared by the Pakistan Stock Exchange (PSX), the it said that the Hub Power Company Limited (HUBCO) together with ENI’s local employees (in a 50:50 joint venture) has executed definitive agreements to acquire all upstream operations in Pakistan of Eni and renewable energy assets owned by Eni in Pakistan.
By way of background, Eni is global energy company, which has been operating in Pakistan since the year 2000 in the exploration and production sector.
The company said that the transactions is subject to requisite compliance with applicable legal and regulatory processes and approval from competent authorities.