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Tag: HUBCO

  • Hubco initiates agreement with Central Power Purchasing Agency

    Hubco initiates agreement with Central Power Purchasing Agency

    KARACHI: The Hub Power Company Limited (Hubco) on Tuesday said that it has initiated agreement with Central Power Purchasing Agency (Guarantee) Limited (power purchaser) in furtherance of the Memorandum of Understanding dated August 21, 2020.

    In a communication sent to Pakistan Stock Exchange (PSX), the company said that under the agreement, the payment of overdue receivables is an integral part of the agreement and the payment mechanism envisaged is two instalments, with 40 percent of the overdue receivables payable within 30 business days of signing the Agreement (comprising 1/3rd cash and 2/3rd financial instruments of PIBs and Sukuks) and the remaining 60 percent payable 6 months thereafter through the same method as that of the first instalment.

    In addition, payment of all invoices will be made in order of its submission so that invoices that have been outstanding the longest (in whole or in part) shall be paid first.

    At the request of the Government of Pakistan, in the larger national interest and sectoral sustainability, the Parties have agreed to reduce the existing Fixed Operating Costs Element by 11 percent, whilst keeping the existing arrangement of indexations.

    At the same time, the Parties have agreed to discontinue the US$ Exchange rate and US CPI indexation on the Project Company Equity and fix the same on National Bank of Pakistan’s TT/OD selling PKR/USD exchange rate prevailing as on August 21, 2020 and US CPI for the month of August 2020; till the current exchange rate reaches that of August 21, 2020 i.e. PKR 168.60/USD, the existing arrangement under Power Purchase Agreement (PPA) for the current half year shall apply for future billing.

    The parties have also agreed to engage without delay, on signing of the Agreement, in good faith negotiations and discussion and use their best endeavors to achieve pre-mature termination of the PPA, which will be mutually beneficial, resulting in compensation to the Company, while saving GOP substantial sums in lieu of capacity payments till the expiry of the Power Purchase Agreement (PPA).

    In parallel, the Parties have also agreed that certain outstanding dispute(s) shall be resolved through arbitration under the PPA. The terms of the Agreement are subject to approval of the Board of Directors of Hubco, the Federal Cabinet and execution of a final binding agreement.

  • HUBCO issues Sukuk wroth Rs6bn for capital requirements

    HUBCO issues Sukuk wroth Rs6bn for capital requirements

    KARACHI: The Hubco Power Company Limited (HUBCO) has issued Sukuk worth Rs6 billion for financing the ongoing capital requirement of the company.

    In a communication sent to Pakistan Stock Exchange (PSX) on Friday, it said that HUBCO through its wholly owned subsidiary, Hub Power Holding Limited, had executed and issued an Islamic Shariah compliant discounted Sukuk of Rs6 billion.

    The Sukuk is partnered with Arif Habib Limited as its arranger, Meezan Bank as Shariah Adivsor and is subscribed by financial institutions, investment companies and other eligible institutions.

    “The purpose of this Sukuk is to finance the ongoing capital requirements of the company,” it added.

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  • Hubco plans generating Rs6 billion through Sukuk

    Hubco plans generating Rs6 billion through Sukuk

    KARACHI: The Hub Power Company Limited (Hubco) through its wholly owned subsidiary, Hub Power Holdings Limited, is in the process of finalizing issuance of Sukuk, a statement said on Monday.

    This represents Hubco’s keen interest in promoting and supporting the Islamic financing options and the local financial industry.

    This proposed Sukuk in the sum of Rs6 billion for a tenor of 5-year, which is being partnered with Meezan Bank Limited as Shariah Advisor and Arif Habib Limited as its arranger will be available for subscription by financial institutions, investment companies and other eligible institutions.

    These funds will be utilized to meet the ongoing capital requirements of the company.

    With an aggressive growth plan and focus on growing the shareholder value, Hubco is pursuing opportunities in the domain of thermal energy, alternate energy and water treatment.

    The Company has an installed capacity of producing over 2920MW through its four plants in Hub, Narowal and Azad Kashmir.

    The Company is the only power producer in Pakistan with four projects listed in the CPEC, namely imported coal-based China Power Hub Generation Company (Private) Limited (CPHGC) at Hub, Thar Energy Limited (TEL) and Thalnova Power Thar (Pvt.) Ltd. and Sindh Engro Coal Mining Company (SECMC) at Thar Coal Block II. Both the 330MW power plants in Thar Block II have achieved their financial close and are expected to meet their Commercial Operations Date (COD) in 2021 and 2022.

    Being a domestic source of energy fuel, the power generation and mining projects in Thar Coal are expected to fortify the energy security of the country and would bring about substantial savings in foreign exchange of the Country.

    The Company is also investing in the Community Development Programs in the fields of health, education, livelihood and basic infrastructure in the vicinity of its plants.

  • Hub Power declares Rs8.036 billion annual profit, 6.17pc lower than previous year

    Hub Power declares Rs8.036 billion annual profit, 6.17pc lower than previous year

    KARACHI: Hub Power Company Limited (HUBCO) has declared net annual profit of Rs8.036 billion for the period ended June 30, 2019, which is 6.17 percent lower than the profit of Rs8.565 billion in the previous year.

    According to financial statement for year 2019 submitted to Pakistan Stock Exchange (PSX) on Thursday, the company also declared earnings per share at Rs6.70 for the year, which is also lower when compared with EPS Rs7.15 in the last year.

    The total turnover of the company sharply fell to Rs36.028 billion in 2019 as compared with the turnover of Rs76.675 billion. The operating costs have been declined to Rs24.29 billion as compared with Rs66.872 billion.

    The company declared gross profit of Rs11.733 billion in the year 2019, which is 19.68 percent higher than the gross profit of Rs9.803 billion a year ago.

    The company declared profit from operations to the tune of Rs13.236 billion for the year under review as compared with Rs11.022 billion in the last year.

    Finance costs of the company increased to Rs4.96 billion as compared with Rs2.247 billion. This brings the profit before taxation of the company at Rs8.275 billion as compared with Rs8.77 billion of the last year.

    The company paid taxes to the tune of Rs238.523 million in 2019 as compared with Rs209.2 million in the previous year.

  • Hubco declares commercial operation date for 1320MW coal-based power plant

    Hubco declares commercial operation date for 1320MW coal-based power plant

    KARACHI: China Power Hub Generation Company (CPHGC) – a joint venture between The Hub Power Company Ltd. (HUBCO) and China Power International Holding – has declared the Commercial Operations Date (COD) of its 1320MW imported coal power plant and integrated jetty with coal transhipment capacity of 4.2 MTPA, a statement said on Sunday.

    Developed in record time, as per schedule and within projected costs, the CPHGC project is a part of the early harvest energy projects under China Pakistan Economic Corridor (CPEC) framework, making it truly a project of national and strategic significance.

    The plant will add 9 billion kWh of electricity to the national grid every year, meeting electricity needs of 4 million households in the country. The Project’s two units achieved synchronization with the National Grid on December 28, 2018 and May 28, 2019, respectively, while the Integrated Coal Jetty became operational in December 2018 with arrival of the first shipment of coal.

    “The successful completion of CPHGC project has fortified the dream of energy independence of Pakistan. Since the synchronization earlier in May, we conducted extensive testing of the systems to make sure we deliver quality while keeping HSE as our top-priority. I am glad that this Pak-China synergy has resulted in engineering excellence and has fulfilled our promise of providing Pakistan with affordable and ample energy” said Khalid Mansoor, CEO HUBCO.

    It is important to note that the Project has also delivered on various social commitments for improving the lives of the local community of Hub and Lasbella.

    Together with its partners, CPHGC has setup a school in Gadani, a floating jetty for fishermen in Abbas Village and has conducted various training and development programs for the local youth of Balochistan.

    The Pakistani principal of the project, The Hub Power Company Limited currently produces over 2920 MW through its four plants spread over Baluchistan, Punjab and Azad Jammu & Kashmir.

    HUBCO is the only power producer in Pakistan with four projects listed in the CPEC out of which three are under-construction namely Thar Energy Limited (TEL) and Thalnova Power Thar (Pvt.) Ltd. and Sindh Engro Coal Mining Company (SECMC) at Thar Block II.

    The power generation capacity of the Company will enhance to over 3580MW after completion of the aforementioned power projects.

  • Largest share offering: Hubco raises Rs7 billion through right shares

    Largest share offering: Hubco raises Rs7 billion through right shares

    KARACHI: The largest independent power producer of Pakistan, Hub Power Company Limited (HUBCO) has issued right shares and raised an amount of Rs7 billion from Pakistan Stock Exchange (PSX), a statement said on Thursday.

    The Right Share is priced at Rs50 per share and the company has issued 140 million shares, as decided by the Board of Directors of Hubco.

    Considering the size of the offering, the Right Issuance is viewed as one of the largest share offering in the history of PSX.

    The purpose of Rights Issuance is to raise funds which will be utilized to consolidate Hubco’s energy portfolio and increase its shareholding in China Power Hub Generation Company (CPHGC) from 26 percent to 47.5 percent”, said Khalid Mansoor, Chief Executive of Hubco. CPHGC is a joint venture between China Power International Holding Ltd (CPIH) and Hubco under which development, construction and operation of 2x660MW Imported Coal-Fired Power Plant is being funded by the two companies.

    Both the units of CPHGC have been synchronized with the National Grid and the Project is expected to start its commercial operations by August 2019. With the aim of “Fueling lives through Energy.”

    The Hub Power Company Limited currently produces over 1600 MW through its three plants located in Hub at Baluchistan, Narowal in Punjab and Mirpur in Azad Jammu & Kashmir, generating around 8 percent of the total power generation capacity in the country.

    The Company is the only power producer in Pakistan with four upcoming projects listed in the CPEC and currently under-construction namely imported coal-based China Power Hub Generation Company (Private) Limited (CPHGC) at Hub, Thar Energy Limited (TEL) and Thalnova Power Thar (Pvt.) Ltd. and Sindh Engro Coal Mining Company (SECMC) at Thar Block II. The power generation capacity of the Company will enhance to over 3580MW after completion of the aforementioned power projects.

  • HUBCO declares 26pc fall in half year profit

    HUBCO declares 26pc fall in half year profit

    KARACHI – Hub Power Company Limited (HUBCO) has announced a significant 26.6 percent decrease in profit after tax for the half-year ended December 31, 2018, according to the financial results submitted to the Pakistan Stock Exchange (PSX) on Thursday.

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