The Hub Power Company (HUBC) is accelerating its strategy to diversify operations and capitalize on emerging business opportunities, driven by improved financial performance and a more stable policy environment. Following recent reforms and the timely release of government subsidies, HUBC reports strengthened cash flows, particularly for its coal-fired power plants, aided by a drop in interest rates and enhanced sector focus.
In a meeting with Topline Securities, HUBC CEO Kamran Kamal and CFO Muhammad Saqib emphasized that issues such as circular debt resolution or the waiver of late payment surcharges for CPEC-linked projects fall under government-to-government discussions, with no active negotiations currently taking place.
As part of its diversification roadmap, HUBC is evaluating the establishment of an aluminium smelter at its existing Hub site, utilizing over 1,100 acres of industrial land and integrating power backup from its nearby plant. The company is also considering downstream integration in bauxite mining, a resource in which Pakistan has significant reserves. This move would create potential for full value chain development in the aluminium sector.
Another major initiative is the proposed development of a Single Point Mooring (SPM) facility to handle petroleum imports for Pakistan State Oil (PSO). Leveraging its current storage and pipeline infrastructure, HUBC is exploring a joint venture model for the SPM project to optimize investment and operational efficiency.
In the electric vehicle segment, HUBC’s collaboration with global EV leader BYD has gained substantial traction. The company now leads the domestic EV market in Pakistan, with assembly of the BYD Atto 3 set to begin in the latter half of 2026. The lineup will expand to include a new C-segment SUV and other models, supported by the rollout of Pakistan’s first nationwide EV charging network, spanning from Karachi to Peshawar. HUBC also has plans to export EVs to right-hand drive markets and has secured interest from international financiers to support this venture.
HUBC’s two coal-fired power plants are nearing full completion and are expected to announce their first dividends soon. According to management, the dividend payouts may exceed return-on-equity expectations, adding to shareholder value.
In the oil and gas sector, HUBC’s joint venture, Prime International, will be active in upcoming offshore exploration bidding rounds. The company is currently building partnerships and consortiums to strengthen its position in the energy exploration and production space.
Further expanding its portfolio, HUBC has invested in Ark Metals, a junior mining company, as part of its foray into mineral resources. The company is also exploring participation in the privatization of Pakistan International Airlines (PIA), potentially as part of a strategic consortium.
HUBC continues to evolve from a traditional power producer into a diversified energy and industrial group, with investments spanning power generation, mining, electric mobility, and infrastructure. This multi-sector approach positions the company for long-term growth and resilience in a rapidly transforming economic landscape.
