CPEC-Linked IPPs Drive HUBCO Dividend Income to Rs. 29.3 Billion

In FY2026, Hub Power Company Limited's dividend income saw a remarkable 96 percent increase compared to the previous year, reaching Rs. 29.3 billion, according to a report by Arif Habib Ltd. This surge in dividend income was primarily attributed to higher contributions from CPEC-linked independent power producers. Thar Energy Limited (TEL) contributed Rs.

10.8 billion, while Hub Power Holdings Limited (HPHL), representing CPHGC and TNPTL, contributed Rs. 11.6 billion. The dividend income from HUBC has grown significantly, with an annualized growth rate of approximately 57 percent between FY2020 and FY2026. In FY2026, HUBC's total standalone dividend income amounted to Rs. 29.3 billion, equivalent to Rs.

22.59 per share, a stark contrast to the Rs. 14.9 billion recorded in FY2025, translating to Rs. 11.50 per share. This increase in dividend income has also bolstered HUBC's own dividend payout, with the company declaring a dividend of Rs. 20 per share for FY2026, compared to Rs. 15 per share in FY2025. The higher dividend income exceeded HUBC's own annual payout, indicating that cash distributions from its investments surpassed the dividend paid to shareholders during the year.

The continued cash generation from CPEC linked projects, including TEL, TNPTL, and CPHGC, is projected to support HUBC's dividend income in the future, with their cash positions and operating performance being crucial factors for future distributions.