The Hub Power Company Limited (HUBCO) is Pakistan’s pioneering Independent Power Producer (IPP), with its first thermal power plant located in Mouza Kund, Gaddani, District Lasbela, Balochistan. Achieving commercial operations in 1996, HUBCO has played a key role in shaping the country’s private power sector. In October 2024, the company reached a negotiated settlement with the government to retire its original power contracts ahead of their scheduled expiry in March 2027. As part of this arrangement, HUBCO received PKR 36.5 billion from CPPA-G (excluding delayed payment interest), while its outstanding liabilities to PSO were cleared by the Government of Pakistan. Over time, HUBCO has expanded beyond conventional power generation into multiple sectors including mining, oil and gas exploration, automotive, and electric vehicle infrastructure.

HUBCO has transitioned into an effective holding company with a diversified investment portfolio valued at approximately PKR 64 billion, spanning multiple sectors. Its energy portfolio demonstrates significant scale and fuel diversification, comprising thermal (RFO), hydropower, imported coal, and indigenous lignite-based power generation.

Subsidiaries

·       Narowal Energy Limited (NEL) – 100% ownership

·       Laraib Energy Limited (LEL) – 74.95% ownership

·       Hub Power Holdings Limited (HPHL) – 100% ownership

·       Hub Power Services Limited (HPSL) – 100% ownership

·       Thar Energy Limited (TEL) – 60% ownership

·       Mega Motor Company (Private) Limited (MMCPL) – 100% ownership via HPHL

·       Ark Metals (Private) Limited – 50.1% ownership via HPHL

·       Hubco Green (Private) Limited (HGL) – 100% ownership via HPHL

Associates

·       China Power Hub Generation Company (Private) Limited (CPHGC) – 47.5% legal ownership via HPHL

·       ThalNova Power Thar (Private) Limited (TNPTL) – 38.3% ownership via HPHL

Joint Ventures

·       Prime International Oil & Gas Company Limited – 50% ownership via HPHL

·       China Power Hub Operating Company (Private) Limited (CPHO) – 49% ownership via HPHL

Most of the above projects have successfully commenced commercial operations and are expected to deliver sustained dividend income, significantly contributing to HUBCO’s long-term profitability. Additionally, HUBCO holds an 8% minority stake in Sindh Engro Coal Mining Company, which is playing a pivotal role in the development and expansion of coal mining in Thar. Expanding its footprint beyond the energy landscape, HUBCO is actively pursuing strategic opportunities in new sectors. These include:

·       Electric Vehicles – through Mega Motor Company in collaboration with BYD Auto

·       EV Infrastructure & Renewables – via HUBCO Green (HGL)

·       Mining and Metallurgy – through its investment in Ark Metals

Through its well-diversified and future-focused investment strategy, HUBCO is positioning itself as a dynamic and resilient conglomerate committed to sustainable growth.

HUBCO’s shareholding is led by Mega Conglomerate, which holds the largest individual stake of 19.48%, followed by Fauji Foundation with an 8.5% interest. The rest of the Company’s shares are owned by a wide array of stakeholders, including financial institutions, insurance companies, mutual funds, modarabas, leasing companies, and members of the general public. This diversified ownership base reflects HUBCO’s broad appeal to institutional and retail investors alike.

HUBCO’s ownership structure has demonstrated remarkable consistency over the years. Major shareholders have retained their stakes, signaling long-term strategic commitment and trust in the company’s performance and direction. This consistency contributes to overall corporate stability, reducing volatility and supporting sustained growth. In this context, stability refers to the reliability and long-term nature of the company’s ownership structure, which serves as a solid foundation for operational and strategic continuity.

HUBCO is one of Pakistan’s largest and most diversified conglomerates, with its core in the power sector. Under the visionary leadership of Mr. Habibullah Khan, the Group has successfully expanded into mining, oil & gas, electric vehicles, and renewables. With a proven track record of executing multi-billion-dollar infrastructure projects, the demonstrates exceptional project delivery capabilities. HUBCO’s strategic partnerships and local operational expertise give it a competitive edge in Pakistan’s evolving energy landscape.

Backed by Mega Conglomerate, HUBCO enjoys strong financial footing with stable revenue streams from a wide investment portfolio. The group reported consolidated net profits of PKR 25.7 billion and earnings per share of Rs. 17.99 in Half year ending 31st Dec 2024. With diversified income sources from power, oil & gas, mining, and automotive ventures, HUBCO maintains resilience against economic volatility. Its AA+ credit rating and regular dividends reflect sound financial health. This strength enables HUBCO to reinvest and support long-term strategic growth across sectors.

The overall control and strategic oversight of The Hub Power Company Limited (HUBCO) rests with an eight- member Board of Directors (BoD). The Board includes three nominees from Mega Conglomerate, HUBCO’s principal shareholder, and one nominee each from the National Investment Trust (NIT), Fauji Foundation, and the Government of Balochistan. In addition, the Board comprises two independent directors, ensuring compliance with regulatory requirements and providing unbiased oversight. The structure reflects a mix of strategic investors, institutional representatives, and independent professionals, fostering a balanced and well-informed decision- making environment.

HUBCO’s Board members possess extensive experience across sectors such as power generation, oil and gas, shipping, logistics, infrastructure, financial services, real estate, and FMCG. The Chairman, Mr. M. Habibullah Khan, is the Founder of Mega Conglomerate, a diversified business group with substantial investments in energy, infrastructure, and industrial ventures. The Board also includes executives and directors with international exposure and academic credentials from leading institutions like Harvard, Georgia Tech, Columbia University, and Northeastern University. In May 2024, Mr. Syed Bakhtiyar Kazmi, a seasoned chartered accountant with over 35 years of experience in finance and macroeconomic advisory, was appointed as an Independent Director, replacing Dr. Nadeem Inayat. The Board’s collective expertise allows HUBCO to navigate complex regulatory environments and pursue long-term strategic growth.

To enhance governance and accountability, the Board has established two key committees: the Board Audit Committee (BAC) and the Board Nomination & Compensation Committee (BNCC), both of which are chaired by independent directors. These committees ensure rigorous financial oversight, risk management, and merit-based executive evaluation. The Board held six meetings during FY 2024, all of which were attended by the Chairman and Chief Executive Officer, while overall attendance by members remained satisfactory. The Board regularly reviewed the Company’s strategic direction, operational performance, investment decisions, and governance framework, ensuring continued alignment with stakeholder interests and regulatory compliance.

HUBCO is fully compliant with the Code of Corporate Governance prescribed by the Securities and Exchange Commission of Pakistan (SECP). The Company maintains a strong system of internal controls, supported by independent audits and regular performance reviews. As a publicly listed company on the Pakistan Stock Exchange (PSX), HUBCO ensures timely and transparent disclosure of financial and non-financial information. The FY 2024 financial statements were audited by A.F. Ferguson & Co., Chartered Accountants, who issued an unqualified opinion, affirming the accuracy and integrity of the reporting.

HUBCO has implemented multidimensional organizational structure that differentiates it from conventional Independent Power Producers (IPPs). The structure is built around eight core functions: Finance, Commercial, Human Resources, Corporate Communications & Digitalization, Internal Audit, Operations, Legal, and Strategy & Regulatory Affairs. As a holding company, HUBCO exercises centralized oversight and strategic control over its diverse subsidiaries and associates, ensuring integrated management and effective alignment across energy, mining, oil & gas, electric mobility, and renewable sectors. This structure enhances agility, efficiency, and accountability within the organization.

The senior management team is comprised of highly experienced professionals with deep expertise in their respective fields. At the helm is Mr. Kamran Kamal, who serves as the Chief Executive Officer (CEO). With a background in energy technology and public policy from Harvard University and engineering from Georgia Tech, Mr. Kamal brings over a decade of cross-functional experience spanning energy markets, infrastructure project structuring, trading, and policy reforms. His prior roles include senior positions at Laraib Energy Limited, China Power Hub Generation Company, and Engro EXIMP. Under his leadership, HUBCO has successfully navigated regulatory reforms, diversified its portfolio, and entered emerging sectors like electric vehicles and battery storage.                

Mr. Muhammad Saqib serves as the Chief Financial Officer (CFO) of The Hub Power Company Limited. With over 21 years of experience in finance and strategy, he has held key leadership positions including CFO at Engro Vopak Terminal Limited and Engro Elengy Terminal Limited.Mr. Saqib is a Chartered Financial Analyst and holds an MBA from the Institute of Business Administration (IBA).  

Together, HUBCO’s senior management team brings strong leadership, deep industry knowledge, and practical experience. Their expertise in energy, finance, and partnerships helps the company adapt to changes in the energy sector and grow sustainably.

The management team maintains a performance-driven culture, ensuring continuous monitoring and evaluation across all operational and strategic fronts. Key decisions are made in consultation with the Board of Directors and its functional committees, promoting institutional governance and risk-aware execution. This collaborative structure enables swift decision-making while upholding regulatory compliance, operational excellence, and long- term sustainability.

HUBCO’s internal control framework and risk governance are managed under the supervision of the Board Audit Committee, guided by a well-established Enterprise Risk Management (ERM) framework and a formal Statement of Internal Control System. The Company follows a proactive approach to identifying and assessing potential risks, implementing preventive measures, and conducting regular internal audits to ensure full compliance with applicable laws and regulations. HUBCO’s control environment reflects international best practices, with continuous enhancements made to align with evolving business dynamics and strategic objectives.

HUBCO adopts a strategic, value-driven approach to investment decision-making, with a strong focus on long-term sustainability and energy security. Investment decisions are guided by thorough market analysis, financial viability, and alignment with national priorities such as import substitution and clean energy. The company actively evaluates projects across the energy value chain, including power generation, mining, oil & gas, and electric mobility. Recent ventures into EV infrastructure and renewable energy signify HUBCO's adaptability to global energy transitions. Investment decisions are centralized under HUBCO Holdings to ensure consistency, oversight, and strategic alignment.

HUBCO’s investment policy emphasizes diversification, risk mitigation, and long-term value creation. The Company prioritizes investments in high-impact sectors, such as indigenous energy production, mineral mining, and clean transportation, that contribute to national development and financial resilience. The policy supports forward- looking initiatives, including renewable energy (solar, wind), local fuel-based power projects, and electric vehicle ecosystems. Strategic partnerships with global leaders like BYD Auto and ventures like HUBCO Green and Prime Oil & Gas illustrate this policy in action. The framework also ensures compliance with financial, environmental, and governance standards.

HUBCO ensures disciplined capital allocation through a strategic and collaborative investment process, involving senior leadership and Board oversight. All major investment proposals—such as the SECMC share acquisition, PPA restructuring, and EV infrastructure rollout—are thoroughly assessed for feasibility, returns, and alignment with long-term goals. The approach emphasizes financial prudence, transparency, and strategic fit. Close coordination between executive management and shareholders helps maintain strong governance. This model supports effective due diligence, risk evaluation, and performance monitoring across all investments.

HUBCO has evolved into a multi-sectoral enterprise, mitigating concentration risk through strategic diversification. It now operates across power generation (3,581 MW installed capacity), coal mining (7.6 MTPA via SECMC), oil & gas (10.7 KBOED via Prime), and electric mobility through Mega Motor Company and HUBCO Green (EV infrastructure). The termination of the Hub Plant PPA in October 2024 has shifted the focus toward high-efficiency plants and emerging sectors. HUBCO also entered into a Master Supply & Manufacture Agreement with BYD Auto and launched its first EV charging station in collaboration with PSO. This expansion reduces HUBCO’s dependence on thermal energy and enhances resilience amid evolving energy trends.

The company’s portfolio comprises six power generation assets, including TEL (330 MW), TNPTL (330 MW), CPHGC (1,320 MW), NEL (225 MW), LEL (84 MW), and the legacy Hub Plant (1,292 MW – PPA terminated. Its 47.5% stake in CPHGC and ownership in SECMC ensure stable supply chains and operating margins. New ventures like Mega Motor Company and HGL position HUBCO at the forefront of Pakistan’s energy transition. Performance metrics such as plant availability (up to 100%) and load factors (up to 88%) reflect operational strength.

For the half year ended December 31, 2024, HUBCO reported a net profit of PKR 13.6 billion, slightly down from PKR 14.9 billion during the same period last year. This performance was largely supported by dividend income of PKR 8.8 billion. The company posted an operating profit of PKR 17.0 billion, reflecting improved efficiency following the termination of the Hub Plant PPA. Finance costs fell sharply to PKR 2.8 billion, compared to PKR 5.5 billion in the corresponding period, strengthening net margins. Although revenue from operations declined to PKR 13.2 billion, HUBCO’s diversified asset base and steady earnings from subsidiaries ensured continued income resilience.

HUBCO’s financial coverages improved notably during FY24, underscored by enhanced cash generation and reduced debt servicing costs. The interest coverage ratio rose to 3.5x for Dec 24 (Dec 23: 2.7x), reflecting higher operational efficiency and lower finance costs (down to PKR 2.8 billion in H1 FY25 from PKR 5.5 billion). Net Profit 13.929 billion for the six-month period, while Cash Flow from operations reached PKR 40.1 billion, a 9x increase from the prior year December. Despite a potential reduction in dividend income post-PPA termination, HUBCO’s diversified business model, including TEL, TNPTL, CPHGC, and Prime Oil & Gas—ensures sustainable coverage going forward.

As of December 31, 2024, HUBCO maintained a solid capital structure, reinforced by both equity growth and debt optimization. Issued share capital remained at PKR 12.97 billion, with a consistent share premium of PKR 5.6 billion. The unappropriated profit rose from PKR 55.24 billion in June 2024 to PKR 58.14 billion, highlighting retained earnings strength. Total equity stood at PKR 76.71 billion. Meanwhile, total borrowings declined to PKR 19.319 billion (Dec 2024) from PKR 49,894 billion (FY23), reducing the leveraging ratio to 40% from 77.5%, as the company successfully repaid its long-term facilities. During the period, the Company has entered into Islamic Facility agreements amounting to Rs. 9,000 million at a mark-up rate of 0.20% per annum above respective KIBOR to support strategic investments, which may modestly increase leverage in the coming periods. This is the only debt on the balance sheet of HUBCO ass all the long term long has been settled after the recovery from CPPA-G in Jan 2025.

HUBCO’s consolidated financial position remains resilient, driven by diversified operations and robust asset performance. As of December 2024, total consolidated assets stood at PKR 107.86 billion, while equity amounted to PKR 76.71 billion, reflecting consistent value retention. The company earned PKR 13.6 billion in profit in H1 FY25, and total comprehensive income reached PKR 13.9 billion, despite the Hub Plant’s exit. Major earnings contributors include NEL, LEL, TEL, and the expanding E&P footprint through Prime, with dividend income of PKR 8.82 billion recorded in just six months. Cash flow from operations remained strong at PKR 40.1 billion, allowing HUBCO to absorb investment cycles and maintain its role as a cash-generative infrastructure leader. The company continues to invest strategically across mining, electric vehicles, and renewable energy to maintain a resilient and forward- looking financial base.