The Hub Power Company held its financial briefing today. The following are the key takeaways from today HUBC’s annual general meeting (AGM).

Brief takeaways

• The Board informed that the company has received two dividend payments from the CPHGC project. During FY24, a total dividend of USD 150mn was received, of which USD 69mn was HUBC’s share.
• The total project cost of CPHGC was USD 1.8bn, of which USD 600mn has been paid to date, with five more years remaining. Amid higher interest costs, the company will first repay its debt.
• The Board dismissed recent media reports about ongoing negotiations between Independent Power Producers (IPPs) and the government.
• The Board further noted that once a power plant reaches the end of its operational life, various options are available for the decommissioned facility, such as selling it or repurposing it for alternative uses.
• The company plans to establish a plant producing 50,000 electric vehicles annually, with 30% to 40% of the output designated for export to Australia and Africa.
• The company anticipates launching CKD cars across 8-9 variants in different segments by Dec’25-Mar’26.
• The board expects strong future cash flows, with the auto segment contributing significantly to the company’s dividends.
• The company aims to enter the mining sector for mineral exploration to identify lithium in the future and will develop a battery manufacturing unit.
• A Reserves Report is being prepared to assess the potential, and the work is expected to take 12-18 months.
• The company is preparing to be well-equipped for the long-term demand for batteries.
• Plans are being made to increase Sindh Engro Coal Mining’s (SECMC) shareholding from 8% to 17%, with management control expected to follow in due course.

Courtesy – AHL Research