Amid lower revenue, Hub Power Company Limited (HUBCO), Pakistan’s largest Independent Power Producer (IPP), saw its profit decline by over 31% to Rs51.77 billion during the year ended June 30, 2025.
On a consolidated basis, the company registered a profit of Rs75.29 billion during the previous year, according to a notice sent to the Pakistan Stock Exchange (PSX) on Wednesday.
Consequently, earnings per share (EPS) decreased to Rs35.56 per share in the period under review compared to Rs53.98 per share in the same period last year (SPLY).
The company announced a final cash dividend of Rs10 per share, i.e. 100%. This is in addition to interim dividends of Rs5 per share, i.e. 50% already paid during the financial year.
On a consolidated basis, the IPP’s revenue from contracts with customers lowered by 36% to Rs83.35 billion in FY25, compared to Rs130.53 billion recorded in the prior year.
“The topline declined… mainly due to lower generation and amendments to the Power Purchase Agreements (PPAs),” said Ismail Iqbal Securities.
“While the country’s overall power generation for FY25 remained broadly flat on a sequential basis, plants under HUBC recorded slightly lower output YoY for FY25,” it added.
The company’s cost of revenue declined nearly 30% to Rs43.53 billion in FY25, compared to Rs62.18 billion in SPLY.
As a result, the gross profit of HUBCO decreased by nearly 42% to Rs39.82 billion in FY25.
Meanwhile, the company’s other income significantly increased by nearly 22%, hitting Rs4 billion in FY25, compared to Rs3.3 billion in SPLY. However, the IPP other operating expenses ballooned to Rs3.85 billion in FY25, up by 57%.
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The power producer’s profit from operations clocked in at Rs38.04 billion in FY25, down 44%.
HUBCO saw its cost of finance lowered to Rs15.2 billion in FY25, a decrease of nearly 43%.
On the other hand, HUBCO earned Rs41.3 billion as a share of profits from associates and ventures in FY25.
The company’s profit before taxation stood at Rs64.1 billion, down 29%.
The IPP paid Rs12. 5 billion in taxes in FY25, down 15%.
HUBCO is the first and one of the largest IPP in Pakistan and directly and indirectly operates and owns various power plants with a combined installed power generation capacity of 2,289 MW.
HUBCO’s wholly owned subsidiary, Narowal Energy Limited (NEL), continues to operate a 225MW RFO-fired, engine-based combined cycle power station located in Narowal, Punjab, contributing reliable power to the national grid.
HUBCO has 74.95% controlling stake in Pakistan’s first hydel IPP, Laraib Energy Limited (LEL), which is a run-of-the-river 84MW hydel power plant near the New Bong Escape, in Azad Jammu and Kashmir.
During the year under review, LEL contributed 354 GWh of clean energy into the national grid with no fuel cost, thereby saving ~$30 million in foreign exchange for the country.
