Hubco Eyes Diversification, EV Growth, and New Ventures

The Hub Power Company (HUBC) is ramping up its diversification strategy and exploring new business opportunities, as management reports improved financials and a positive outlook following government reforms and timely subsidy releases. In a recent meeting with Topline Securities, HUBC’s CEO Kamran Kamal and CFO Muhammad Saqib said the company’s recoveries have strengthened, especially for its coal-fired power plants, thanks to the government’s focus on the sector and lower interest rates. Management clarified that any resolution of the circular debt or waiver of late payment surcharges for CPEC-related plants would be handled at the government-to-government level, with no talks currently underway. HUBC is actively considering several new projects. One option is to set up an aluminium smelter at its Hub site, leveraging its vast 1,100-acre industrial land and existing power plant as backup. The company is also exploring the potential for integrated bauxite mining, given Pakistan’s significant reserves, and may pursue value chain integration in the future, said the brokerage house. Another major initiative is the development of a Single Point Mooring (SPM) facility to import petroleum products for PSO, using existing storage tanks and pipeline infrastructure. HUBC plans to form a joint venture for this project if it moves forward, it added. On the electric vehicle (EV) front, HUBC’s partnership with BYD is showing strong momentum. Management reported a much better-than-expected market response, with HUBC now the largest EV company in Pakistan. Local assembly of BYD’s Atto 3 is set to begin in the second half of 2026. The company is also rolling out a range of BYD vehicles, including a new C-segment SUV, and is building Pakistan’s first nationwide EV charging network from Karachi to Peshawar. HUBC is also eyeing car exports to right-hand drive markets and has secured interest from international financiers for this venture. Meanwhile, its two coal-based plants are expected to declare their first dividends soon after reaching project completion, with payouts anticipated to be higher than return-on-equity components. In the oil and gas sector, HUBC’s joint venture, Prime International, will participate in upcoming offshore bidding rounds, with new partnerships and consortiums in the works. Management emphasized HUBC’s track record of diversification, from coal power and E&P to the EV segment. The company is now expanding into mining, recently investing in junior mining company Ark Metals and considering participation in the PIA privatization as part of a consortium.