The Hub Power Company Limited (PSX: HUBC) reported a net profit of Rs14.64 billion for the half year ended December 31, 2025, reflecting an 8% increase over the Rs13.60 billion recorded during the same period last year. Earnings per share rose to Rs11.29 from Rs10.49, while the company declared an interim dividend of Rs5 per share, underscoring a stable shareholder return amid evolving revenue streams.
The half-year results highlight a significant transformation in the company’s income structure. Revenue from contracts with customers, which contributed Rs13.21 billion in H1 FY2025, was nil in the current period, resulting in a corresponding drop in cost of revenue to zero from Rs4.37 billion in the prior period. This shift emphasizes the company’s transition toward dividend income as its primary revenue source, which surged 80% to Rs15.92 billion from Rs8.82 billion in the same period last year, driven by strong dividend distributions from investments.
General and administrative expenses witnessed a sharp decline of 85%, falling to Rs49 million from Rs335.8 million, contributing to improved cost efficiency. Other income, however, decreased by 59% to Rs95.7 million from Rs231.7 million, while other operating expenses reduced 61% to Rs217.2 million from Rs556.9 million. Profit from operations consequently declined 7% to Rs15.75 billion from Rs17 billion in H1 FY2025, as the absence of operational revenue partially offset the gains from dividend income.
Finance costs fell dramatically by 86% to Rs380.5 million from Rs2.80 billion, reflecting the company’s successful debt reduction and business restructuring initiatives. This provided substantial relief to the company’s profitability and strengthened its financial position. Profit before taxation increased by 8% to Rs15.37 billion compared to Rs14.19 billion in the corresponding period last year.
Taxation expense increased moderately by 22% to Rs723.1 million from Rs590.7 million in H1 FY2025. The modest rise in tax did not materially affect overall profit growth, with net earnings climbing 8% to Rs14.64 billion for the half year.
The Hub Power Company’s financial results highlight the company’s strategic focus on investment income and operational efficiency. By reducing finance costs, controlling administrative expenses, and relying on dividend income, HUBC has successfully navigated the transition from traditional operational revenue to a more investment-driven business model, while maintaining strong shareholder returns.
The company’s performance provides insights into the evolving dynamics of Pakistan’s energy sector, reflecting the growing importance of diversified revenue streams, prudent financial management, and capital structure optimization. With a declared dividend and an increase in earnings per share, HUBC demonstrates resilience and adaptability in the current financial landscape, reinforcing confidence among investors and stakeholders.
Follow thePakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.