Key Takeaways
- HUBCO's dividend income increased by 96% to Rs. 29.3 billion in FY2026.
- CPEC-linked IPPs contributed significantly to the surge in dividend income.
- TEL and HPHL were the major contributors, with dividends reaching Rs. 10.8 billion and Rs. 11.6 billion respectively.
Hub Power Company Limited (HUBCO) reported a significant increase in its standalone dividend income, reaching Rs. 29.3 billion in fiscal year 2026, up from Rs. 14.9 billion the previous year. This marked a 96% year-over-year growth, driven primarily by contributions from CPEC-linked independent power producers (IPPs).
Thar Energy Limited (TEL) contributed Rs. 10.8 billion to HUBCO’s dividend income, while Hub Power Holdings Limited (HPHL), representing CPHGC and TNPTL, contributed Rs. 11.6 billion. These figures reflect the maturation of CPEC projects and their ability to generate cash for upstream distribution.
The company’s total dividend income per share reached Rs. 22.59, nearly double the Rs. 11.50 per share in FY2025. HUBCO declared a dividend of Rs. 20 per share for FY2026, up from Rs. 15 per share in the previous fiscal year. The higher dividend income also supported HUBCO’s own dividend payout, with cash distributions from its investments exceeding the dividend paid to shareholders.
Other contributors to HUBCO’s dividend income included Rs. 3.52 billion from LEL, Rs. 2.59 billion from SECMC, and Rs. 750 million from HPSL. The company expects continued cash generation from CPEC-linked projects, including TEL, TNPTL, and CPHGC, to support future dividend income. Their operating performance remains crucial for future distributions.
The sharp increase in dividend income reflects the successful implementation of CPEC projects and their ability to generate substantial cash flows. This growth is expected to benefit HUBCO’s shareholders and support the company’s financial health.
