Dear Stakeholders,
During the last fiscal year, we decided to move towards transformation and turnaround in our company’s overall strategy in order to create value and a lasting impact for yourselves and the organization. The difficult economic and geo-political situation wrought havoc on our sector presenting a range of challenges, including inflation, circular debt, currency devaluation, a global commodity super cycle, supply chain disruptions and increased pressures on energy provisioning.
Although the consequences of these issues have been immense; we have taken them as an opportunity to respond and persevere.
As an organization that has always been at the forefront of advancement and progress in the country, we remain conscious of Pakistan’s shifting energy needs considering the rising global cost of power generation and have adapted accordingly by positioning ourselves to provide electricity through indigenous and affordable sources of fuel.
The advent of our new power plants, Thar Energy Limited (TEL) and ThalNova Power Thar (Pvt.) Limited (TNPTL) usher in a new era for power generation. TEL, which has already synchronized with the national grid, and TNPTL, that nears its final phase of completion, will together help generate 660 MW of power that will strengthen the energy security of the country.
We also remain committed to continuous growth and expansion. Over the last four years we have more than doubled our generation capacity from 1600 MW to 3581 MW as well as entered large scale operations and management contracts for a variety of different power plants with multiple different sources of fuel: from coal to furnace oil to hydro. Additionally, our acquisition of ENI Pakistan’s business through our Joint Venture Prime International Oil & Gas Company Limited is advancing and upon completion will help HUBCO diversify into the oil and gas sector and further develop indigenous fuel sources for the country.
Unfortunately, despite being the only IPP that has expanded in national interest, we continue to be disappointed with late payments by our off taker. Our receivables once again stand at the same levels they did prior to signing the IPP Master Agreements with the Government of Pakistan in 2020.
As we look towards the future, we are confident that our policies are aligned with the demands and trials of our country’s energy landscape enabling us to realize the benefits of our expansion. Our resilience has been demonstrated through strong financial results with Earnings per Share (EPS) growing from Rs. 9 to Rs. 21.95 over the last 5 years. In the foreseeable future we expect additional earnings taking our eps number up to 40 on a consolidated basis with accumulated dividends in our 4 CPEC projects (which are investments of close to 4.5 billion U.S. Dollars) adding to our dividend distribution to shareholders; an already historically highest ever number of Rs. 18.5 per share in the last 20 months.
This push in our overall strategy will continue to not only create value addition in the company’s portfolio in the future, but also enable HUBCO, as the largest IPP in the country, to further contribute to Pakistan’s GDP and move towards a transition into renewables, water initiatives and above all digitalization of the company’s operations, enhancing our capabilities towards becoming a service-oriented entity with an optimized synergy within the group’s overall performance and profitability.
It is with this in mind that we renew our commitment to fueling the nation and developing more sustainable means of doing so, both economically and environmentally. I hope that the upcoming year marks a new era of achievement and growth for our company and look forward to your continued support.
Finally, I would like to extend my heartfelt gratitude to all our stakeholders and employees for their contribution in creating a uniquely progressive entity that symbolizes the national resolve to excel with unmatchable levels of commitment and achievement.
Thank you for your unwavering trust in our endeavor,
Warmest Personal Regards.
M. Habibullah Khan
Chairman
