HUB Power eyes aluminium smelter and SPM projects

HUB Power has outlined plans to build a Single Point Mooring (SPM) on the Hub coast to import POL products for Pakistan State Oil (PSO).

It also plans to set up aluminium production in Karachi to expand its business.

In a meeting, CEO Kamran Kamal and CFO Muhammad Saqib said that the leadership has outlined plans spanning from potential aluminium production to a national electric vehicle (EV) network in partnership with Chinese automaker BYD.Wuling Binguo EV Spotted at Karachi Port for Launch

The Hub Power Company Limited (HUBC) is exploring major industrial expansion and diversification opportunities while consolidating its position as Pakistan’s leading energy producer.

“We had a management meeting with the senior management of HUBC CEO, Mr. Kamran Kamal and CFO, Mr. Muhammad Saqib on the recent financial results and outlook.

Regarding the recent power circular debt resolution, the company stated that they are not aware of any talks made on 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 timely release of the planned subsidies, the Company’s recoveries have improved, particularly for its coal-fired power plants. This is one reason for reduction in the Company’s finance cost along with lower interest rate.

The Company said that different options have been explored for its base plant at Hub, which has a huge industrial land 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 easily import alumina (the raw material).

Given Pakistan’s significant bauxite reserves (200mn tons), including 74mn tons of identified reserves in Khushab, AJ&K, KPK and Ziarat regions, complete integration across the value chain could be explored at a later stage.

Another option is building a Single Point Mooring (SPM) on the Hub coast to import POL products for PSO. The plan involves using available storage tanks and transporting the products through the Asia Petroleum Pipeline (PSO stake: 49%) to Zulfiqarabad, where it connects with the White Pipeline to North onward. The company will be forming a JV type structure for this transaction, if moves forward.

Regarding BYD, management stated that they have received a much better response than what was 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 assembling 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 till Peshawar along the Motorway, thereby enabling EV adoption in the country.

Regarding car exports to right-hand drive countries, management stated that there is a possibility of this in 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 ROE component and is expected in this quarter.

The company’s oil and gas joint venture, Prime International, will participate in the upcoming offshore bidding round, with partners and consortiums currently being formed for this purpose.

The company has a history of pursuing growth through diversification, having previously invested in the Coal Power Plants, E&P and currently they are targeting 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.