Regarding the recent power circular debt resolution, the company stated that it is not aware of any discussions regarding the waiver of the late payment surcharge. They further mentioned that any discussions on this matter will take place at the government-to-government (G2G) level, as these are CPEC-related plants, and the relevant forum for such discussions is the JCC.
§ Management stated that due to the government’s focus on this area and the timely release of the planned subsidies, the company’s recoveries have improved, particularly for its coal-fired power plants. This is one reason for the reduction in the company’s finance cost, along with a lower interest rate.
The Company stated that various options have been explored for its base plant at Hub, which is situated on a large industrial site of ~1,100 acres. An option to set up an aluminium smelter was explored, which is an energy-intensive business and could help address Pakistan’s surplus energy issue, while also allowing HUBC to use its existing base plant as a backup. Since the site is located with land and sea transportation infrastructure, they would be able to import alumina (the raw material) easily. Given Pakistan’s significant bauxite reserves (200 million tons), including approximately 74 million tons of identified reserves in the Khushab, AJ&K, KP, K, and Ziarat regions, complete integration across the value chain could be explored at a later stage.
Another option is to build a Single Point Mooring (SPM) on the Hub coast to import POL products for PSO. The plan involves utilizing available storage tanks and transporting the products through the Asia Petroleum Pipeline (PSO stake: 49%) to Zulfiqarabad, where it connects with the White Pipeline, extending northward. The company will form a JV-type structure for this transaction if it moves forward.
Regarding BYD, management stated that they have received a significantly better response than initially expected in the market. They are currently the largest EV company in Pakistan, and there has been a steady increase in demand for the Atto 3. BYD local assembly will start in 2H2026.
§ Management stated that BYD offers a complete range of vehicles, from small cars to luxury SUVs. For now, they have launched a C-segment SUV based on affordability, considering that the target customers for this vehicle can install their own charging infrastructure. The company is also developing Pakistan’s first and largest EV charging network that would span from Karachi to Peshawar along the Motorway, thereby enabling EV adoption in the country.
Regarding car exports to right-hand drive countries, management stated that this is a possibility for the future; however, their current focus is on developing the plant. They also mentioned that two international financing partners are already on board at this stage.
§ Management stated that its two coal-based plants are expected to declare their Project Completion Date (PCD) soon, after which they will be able to announce dividends. Unlike CPHGC, which declares dividends once a year, TEL and Thal Nova can declare dividends twice annually. The first dividend is expected to be higher than the ROE component and is expected to be paid in this quarter.
§ The company’s oil and gas joint venture, Prime International, will participate in the upcoming offshore bidding round, with partners and consortia currently being formed for this purpose.
The company has a history of pursuing growth through diversification, having previously invested in coal power plants and E&P, and is currently targeting the EV segment. Management is now focusing on the mining sector with its recent investment in a junior mining company, Ark Metals (Pvt.) Ltd. while exploring other strategic opportunities, including participation in the PIA privatization as part of a consortium.
