The Hub Power Company (PSX: HUBC) has posted a significant decline in its consolidated financial results for the year ending June 30, 2025, reporting a 31.2% drop in net profit. The company’s net profit for FY25 stood at Rs51.77 billion, down from Rs75.30 billion in the previous year.
This decline primarily stems from the early termination of the power purchase agreement for the Hub power plant. The company’s profit from operations also fell sharply by 43.5%, dropping to Rs38.04 billion from Rs67.36 billion in FY24.
Revenue from contracts with customers decreased by 36.1%, from Rs130.5 billion in FY24 to Rs83.35 billion in FY25, contributing significantly to the drop in profitability. Despite a reduction in the cost of revenue, the company’s gross profit still saw a decline of 41.7%.
A reduction in finance costs by 43.0%, from Rs26.74 billion in FY24 to Rs15.23 billion in FY25, provided some relief but was not enough to offset the overall decrease in earnings. The company also reported a 16.3% decline in its share of profit from associates and joint ventures, with taxation for the year totaling Rs12.5 billion.
Earnings per share (EPS) attributable to the holding company’s owners also saw a significant decrease of 34.1%, dropping to Rs35.56 from Rs53.98 in FY24. The market has reacted positively to HUBCO’s financials with the company stock gaining almost 9% value in intraday trading, after the announcement of the financials.
Hub Power, Pakistan’s largest independent power producers, operates the Hub Power Plant located in Balochistan, which has a total installed capacity of 1,292 MW. The company plays a critical role in Pakistan’s energy sector, supplying electricity to the national grid. Despite the operational challenges and contract terminations, Hub Power remains a key player in the country’s power generation industry.
