Karachi February 26 2025: Hub Power Company announced an unexpected dividend of PKR 5 per share even after the termination of Power Purchase Agreement with the CPPA-G.
Company profitability drops 72.4 percent during the second quarter to PKR 5.4 billion, according to company filing to the exchange.
Earlier, the company reached Negotiated Settlement Agreement with the Government of Pakistan (GoP) and CPPA(G).
Under the Agreement, all rights and obligations under PPA, IA and Sovereign Guarantee cease upon termination effective October 1, 2024. As a part of the Agreement, GoP and CPPA(G) have agreed to settle the Company’s outstanding receivables upto October 1, 2024. CPPA(G) has agreed to reimburse the Company if sales tax apportionment on Capacity Purchase Price (CPP) is decided against the Company. Furthermore, WWF and WPPF accrued till June 30, 2024, when decided by the Supreme Court, will be reimbursed to the Company by CPPA(G).
It was also agreed that all outstanding obligations of the Company towards PSO will be assumed by CPPA(G)/GOP. Subsequently, the Company has received PKR 36.46 billion from CPPA(G) out of the net receivable amount of PKR 36.5 billion.
