The hub power company limited

History:

In 1985, the Government of Pakistan, with the help of the World Bank, developed a long-term energy
strategy which envisaged the involvement of private investors in power generation. The objective was to
meet the increasing demand for power in the country, in the most efficient and effective way to achieve
the levels of growth the Government had set for the economy. A year later, the development of the Hub
Power Project began. The Government requested the sponsors led by Xenel Industries of Saudi Arabia to
present proposals for a 1292 MW plant. The World Bank shortly thereafter became involved with the
sponsors in the development process and set about establishing the support of a number of
governments as co-financiers in the Private Sector Energy Development Fund for Pakistan. An
appropriate location was identified in an area near the estuary of the Hub river in Balochistan, about
40kms north-west of Karachi. At the conclusion of a full feasibility study in 1988, a construction
consortium led by Mitsui of Japan was selected on the basis of a minimum functional specification for
the plant, two members of which were later replaced following tender procedures. British Electricity
International which later became a wholly owned subsidiary of National Power of the United Kingdom,
entered into a contract for the operation and maintenance of the plant. The plant was designed to meet
the World Bank’s environmental requirements. In 1991, Hubco was incorporated in Pakistan as a limited
liability company for the purpose of implementing the project. During the three years that followed, a
series of agreements were negotiated between Hubco and the Government of Pakistan and certain of its
institutions, the construction consortium and National Power It was on the basis of these agreements
that long-term finance was raised without direct guarantees from the Government. In addition to
support from the World Bank and other governmental and multilateral sources, including the
governments of France, Italy, Japan, the United Kingdom and the United States under the Pakistan
Energy Development Fund, the World Bank and the Import/Export Bank of Japan jointly developed an
Expanded Co-financing Operations Programmed to assist the international commercial debt funding by
the provision of a partial guarantee. A significant portion of the offshore debt was also guaranteed by
certain export credit agencies. Rupee debt was provided by a group of local banks led by the National
Development Finance Corporation of Pakistan. Debt syndication was completed during the last quarter
of 1994 and by the end of the year, the full financing, including equity was in place. This was the single
largest issue of domestic shares at one time. Financial closure was finally achieved in January 1995,
when all consents and conditions precedent had been secured and the first tranche of the senior debt
was draw down.

Hub Power Plant

The Hub power station was one of the first and largest Independent Power Producer (IPP) in Pakistan to
be financed by the private sector in Southern Asia and one of the largest private power projects in the
newly industrialized world. Financial closure took place in January 1995, two years after the sponsors of
the project had decided to raise mobilization finance and to begin construction to meet the policy
guidelines of the Government of Pakistan for additional electricity to be provided by private investment.
The station achieved COD on 31 March 1997. The Hub power station was the first project to be
successfully co-financed by several governments, the World Bank as well as international private sector
lenders and investors. It set the standard for the formulation of a private power framework in Pakistan
which has elicited numerous responses from international investors. Several medium sized projects have
since completed their financing, construction and now are in operation. Today, the Hub Power Company
is listed on the Karachi, Lahore and Islamabad Stock Exchanges and its Global Depository Receipts are
listed on the Luxembourg Stock Exchange. It has over thirteen thousand (13,000) Pakistani and
International shareholders.

We are First

 Major infrastructure project in a developing country.

 International equity offering and underwriting for a developing country -under construction
infrastructure project.
 Private sector infrastructure project.
 World Bank financed Infrastructure Project – 1985.
 Stock market floatation of a single power station under construction (380 million US$).

In 2003 the Board of Hubco decided to do more energy related investments that would add value to its
shareholders. With this vision the tag line of Hubco was changed to “Growth through energy” in 2006
and the Board decided to participate in GOP’s program for Fast Track Project. Narowal was identified as
Project site. The Board approved the 225 MW capacities Narowal Power Plant in 2007 at an estimated
cost of Rs. 24.276 bn.

Narowal Power Plant

Construction work began in 2008 and completed in 2010. The plant achieved its COD on 22 April
2011.The plant entered into an Equipment Supply Contract (ESC) with MAN Diesel & Turbo, Germany
and Construction Contract (CC) with MAN Diesel Pakistan (Pvt) Ltd in April 2008 collectively called
Engineering, Procurement and Construction (EPC) Contract. The Owners Engineers were Mott
MacDonald, Ireland. The O&M Contractor are TNB Remaco Pakistan (Pvt) Ltd a subsidiary of TNB Repair
and Maintenance Sdn. Bhd, Malaysia. Narowal is a combine cycle power plant with net output of 214
MW. It consists of 11 diesel engines of 18 MW net output each plus a steam turbine of 16 MW. The fuel
used is High Sulphur Furnace Oil (HSFO) supplied by Bakri Trading Company Pakistan (Pvt) Ltd.

Laraib Energy Ltd

Continuing with its strategy of “growth through energy” the Board in 2008 decided to acquire 75% stake
in Laraib Energy Ltd, a company setting up 84 MW capacity run of the river Hydel power plant on New
Bong Escape 8 km downstream of Mangla Dam. With this project achieving its COD by June 2013 Hubco
will become the first hydropower IPP in Pakistan. More details on Laraib Energy Ltd can be found on
http://www.laraibenergy.com

.hubco productivity table

Fiscal Year Electricity Generation Company’s share % age

(GWh) (GWh)
2006 – 07 97,814 7,214 7.4%
2007 – 08 97,451 7,205 7.4%
2008 – 09 94,663 8,257 8.7%
2009 – 10 99,856 8,337 8.4%
2010 – 11 102,484 8,352 8.2%

CATEGORIES OF SHAREHOLDING

THE HUB POWER COMPANY LIMITED

CATEGORIES OF SHAREHOLDING AS ON DECEMBER 31, 2013

CATEGORIES NO. OF SHARES

Associated Companies 277,452,000

Financial Institution, InvestmentCompanies &

Banks, Insurance Companies andModaraba &
535,821,446
Modaraba Management Cos/Mutual Fund &
Leasing Companies

Directors & CEO 17,980,520

NIT 7,957,797

Misc/General public 317,942,624

Total Paid-up capital 1,157,154,387

FREE FLOAT OF SHARES

THE HUB POWER COMPANY LIMITED

 FREE FLOAT OF SHARES AS ON DECEMBER 31, 2013

NO. OF SHARES

Total Outstanding Shares 1,157,154,387

Less:

Shares Held By Directors/Sponsors 17,980,520

Government Holdings As
358,607
Promoter/Acquirer/Controller

Shares Held By Associated Companies 277,452,000

Shares Held With General Public in Physical

38,646,228 (334,437,355)
Form

Free Float 822,717,032

Total Number of Shares Available in CDS 1,118,149,052

Total Number of Shares in Physical Form 39,005,335

Operational Statistics

Key operating and financial data of the last six years is as follows.

Year ended June . 2012 2011 2010 2009 2008 2007

Turnover Rs. In millions 174,712 123,310 99,694 82,784 62,435 44,131
Profit “ 8,190 5,425 5,556 3,781 2,601 2,654
Assets “ 207,817 146,240 122,696 90,186 62,697 44,994
Reserves “ 19,196 17,949 18,310 17,961 16,899 17,481
Dividend “ 6,943 5,786 5,207 2,719 3,182 3,587
Dividend per Share Rs. 6.00 5.00 4.50 2.35 2.75 3.10
Generation GWh 9,091 8,352 8,337 8,257 7,205 7,214
Hubco yearly stock price chart :
2014

Chart for: HUBC for the Year: 2014

2013
Chart for: HUBC for the Year: 2013
2012

Chart for: HUBC for the Year: 2012

2011

Chart for: HUBC for the Year: 2011

2010

Chart for: HUBC for the Year: 2010

Financial statistics of HUBCO
Annual
Profit / (Loss) Profit / (Loss) Closure Of
Year ended /Half EPS General
Date Dividend / Bonus / Right Before Taxation After Taxation Share Transfer
Year ended (Rs.) Meeting /
(Rs. In Million) (Rs. In Million) Books
E.O.G.M.
14/03/2014 -
20140218 31/12/2013(HYR) DIVIDEND=25%(I) 2,938.750 (UCS) 2,936.795 2.54 -
21/03/2014
20140218 31/12/2013(HYR) - 3,470.070 (CS) 3,468.115 (CS) 2.88 - -

20131024 30/09/2013(IQ) - 1,815.518 (UCS) 1,814.723 (UCS) 1.57 - -

20131024 30/09/2013(IQ) - 2,151.661 (CS) 2,150.866 (CS) 1.78 - -

12/09/2013 -
20130819 30/06/2013(YR) 45% (F) (D) 10,231.283 (CS) 10,229.763 (CS) 8.72 30/09/2013
30/09/2013
20130819 30/06/2013(YR) - 9,389.400 9,387.880 8.11 - -

20130425 31/03/2013(IIIQ) - 7,658.943 (CS) 7,653.935 (CS) 6.62 - -

20130425 31/03/2013(IIIQ) - 7,403.271 (UCS) 7,402.075 (UCS) 6.40 - -

25/03/2013 -
20130227 31/12/2012(HYR) 35% (i) (D) 4,929.975 (CS) 4,926.032 (CS) 4.26 -
01/04/2013
20130227 31/12/2012(HYR) - 4,741.855 (UCS) 4,740.983 (UCS) 4.10 - -

20121031 30/09/2012(IQ) - 2,213.665 (CS) 2,212.853 (CS) 1.92 - -

20121031 30/09/2012(IQ) - 2,113.566 (UCS) 2,113.566 (UCS) 1.83 - -

8,189.678 (CS) 8,189.678 (CS) 15/09/2012 -
20120718 30/06/2012(YR) 30% (D) 7.08 27/09/2012
(UCS) (UCS) 27/09/2012
20120718 30/06/2012(YR) - 8,580.589 (CS) 8,575.448 (CS) 7.42 - -

20120426 31/03/2012(IIIQ) - 5,268.360 (CS) 5,265.044 (CS) 4.55 - -

20120426 31/03/2012(IIIQ) - 4,972.268 (UCS) 4,972.268 (UCS) 4.30 - -

09/03/2012 -
20120208 31/12/2011(HYR) 30%(i) (D) 2,998.010 (UCS) 2,998.010 (UCS) 2.59 -
16/03/2012
20120208 31/12/2011(HYR) - 3,205.132 (CS) 3,202.819 (CS) 2.77 - -

20111026 30/09/2011(IQ) - 1,337.020 (CS) 1,335.170 (CS) 1.16 - -

1,240.659 (CS) 1,240.659 (CS)
20111026 30/09/2011(IQ) - 1.07 - -
(UCS) (UCS)
18/10/2011 -
20110908 30/06/2011(YR) 30%(F) (D) 5,563.212 (CS) 5,545.791 (CS) 4.81 31/10/2011
31/10/2011
5,424.832 (CS) 5,424.832 (CS)
20110908 30/06/2011(YR) - 4.69 - -
(UCS) (UCS)
4.284.461 (CS) 4.284.461 (CS)
20110419 31/03/2011(IIIQ) - 3.70 - -
(UCS) (UCS)
20110419 31/03/2011(IIIQ) - 4,244.650 (CS) 4,228.994 (CS) 3.67 - -
18/03/2011 -
20110222 31/12/2010(HYR) 25%(i) (D) 2,842.827 (UCS) 2,842.827 (UCS) 2.46 -
25/03/2011
20110222 31/12/2010(HYR) - 2,810.150 (CS) 2,799.441 (CS) 2.43 - -
 1,269.205 (I) 1,269.205 (I)
20101027 30/09/2010(IQ) - 1.10 - -
(CD) (CS) (UCS) (CD) (CS) (UCS)
1,252.100 (I) 1,239.189 (I)
20101027 30/09/2010(IQ) - 1.08 - -
(CD) (CS) (CD) (CS)
09/09/2010 -
20100809 30/06/2010(YR) 25%(F) (D) 5,556.122 (UCS) 5,556.122 (UCS) 4.80 22/09/2010
22/09/2010
20100809 30/06/2010(YR) - 5,468.837 (CS) 5,468.837 (CS) 4.74 - -

20100428 31/03/2010(IIIQ) - 4,291.178 (UCS) 4,291.178 (UCS) 3.71 - -

20100428 31/03/2010(IIIQ) - 4,221.835 (CS) 4,221.835 (CS) 3.66 - -

19/03/2010 -
20100225 31/12/2009(HYR) 25%(i) (D) 2,817.869 (CS) 2,817.869 (CS) 2.44 -
26/03/2010
20091028 30/09/2009(IQ) - 1,088.356 (CS) 1,088.356 (CS) 0.94 - -

20091028 30/09/2009(IQ) - 1,108.031 (UCS) 1,108.031 (UCS) 0.96 - -

14/09/2009 -
20090812 30/06/2OO9(YR) 20%(F) (D) 3,780.991 3,780.991 3.27 30/09/2OO9
30/09/2009
20090812 30/06/2OO9(YR) - 3,717.099 (CS) 3,717.099 (CS) 3.23 - -

20090430 31/03/2OO9(IIIQ) - 2,965.262 2,965.262 2.56 - -

19/03/2009 -
20090225 31/12/2OO8(HYR) 13.5%(i) (D) 1,691.244 1,691.244 1.46 -
27/03/2009
20081029 30/09/2OO8(IQ) - 701.757 701.757 0.61 - -

20080922 - - - - - 29/09/2OO8 -
13/09/2008 -
20080805 30/06/2OO8(YR) 10%(F) (D) 2,600.583 2,600.583 2.25 22/09/2OO8
22/09/2008
20080429 31/03/2OO8(IIIQ) - 1,991.550 1,991.550 1.72 - -
14/03/2008 -
20080213 31/12/2OO7(HYR) 11.5%(i) (D) 1,339.829 1,339.829 1.16 -
24/03/2008
20071031 30/09/2OO7(IQ) - 607.123 607.123 0.52 - -
13/10/2007 -
20070905 30/06/2OO7(YR) 16%(F) (D) 2,654.237 2,654.237 2.29 24/10/2OO7
24/10/2007
20070425 31/03/2OO7(IIIQ) - 2,023.523 2,023.523 1.75 - -
15/03/2007 -
20070214 31/12/2OO6(HYR) 12.5%(i) (D) 1,248.287 1,248.287 1.08 -
26/03/2007
20061031 3O/O9/2OO6(IQ) - 722.238 722.238 0.62 - -
FINAL DIVIDEND FOR THE YEAR
20060810 - 2,768.437 2,768.437 2.39 20/09/2006 20/09/2OO6 -
ENDED 3O/O6/2OO6 18.5%
20060426 31/O3/2OO6(IQ) - 2,059.601 2,059.601 - - -
INTERIM DIVIDEND FOR THE HALF
20060216 - 1,266.95 1,266.95 - - 27/O3/2OO6 -
YEAR ENDED 31/12/2OO5 12.5%(i)
20051020 3O/O9/2OO5(IQ) - 638.276 638.276 - - -
FINAL DIVIDEND FOR THE YEAR
20050902 - 5,385.449 5,385.449 - 19/1O/2OO5 21/1O/2OO5 -
ENDED 3O/O6/2OO5 26%
20050427 31/O3/2OO5(IQ) - 3,943.805 3,943.805 - - -
INTERIM DIVIDEND FOR THE YEAR
20050303 - - - - - 15/O4/2OO5 -
ENDED 3O/O6/2OO5 13%(i)
20050217 31/12/2OO4(HYR) - - - - - -

20041021 3O/O9/2004(IQ) - 1370.055 1370.055 - - -

 FINAL DIVIDEND FOR THE YEAR
20040903 - - - - 13/1O/2OO4 15/1O/2OO4 -
ENDED 3O/O6/2OO4 16%
20040422 31/O3/2004(IQ) - - - - - -
INTERIM DIV. FOR THE HALF YEAR
20040304 - - - - - 16/O4/2OO4 -
ENDED 3O/O6/2OO4 16%
20040128 31/12/2003(HYR) - - - - - -

Indications

(IQ) First Quarter

(HYR) Half Yearly

(IIIQ) Third Quarter or Nine Months

(YR) Yearly

(I) Interim

(CD) Condensed

(CS) Consolidated

(UCS) Un-consolidated

CRITERIA FOR SELECTION OF TOP COMPANIES FOR THE YEAR

2012
1) Prerequisites for Selection of Top Companies:
a) A minimum distribution of 30% (including at least 15% cash dividend) for the year;
b) The Shares of the company are traded 50% of the total trading days during the year
c) The company should not be in the Defaulters’ Segment of the Exchange or trading in its
shares has not been suspended on account of violation of Listing Regulations / any other
applicable law during the year.

The Companies that Qualify above Prerequisites will be selected on the Basis of Highest Marks
Obtained as per the following Criteria:
 Capital Efficiency:
(i) Shareholders Return (on the basis of before tax
profit)

(ii) Change in Market Value Added (MVA) =

MVA of the year – MVA of the preceding year

abs (MVA of the preceding year) ᵡ100

Profitability:
Total Distribution
pertaining to free-float of
shares. 25%

(Out of current year’s

profit only. In case
dividend/ bonus is paid
out of prior year’s
earnings/ reserves, then
the dividend/ bonus shall
be adjusted
proportionately)
Growth in Earnings
before Tax Depreciation
and Amortization
(EBTDA) 12.5%

Free-Float of Shares:
Free-float of shares as a percentage
of total shares outstanding 7.5%

Turnover of Shares:
Transactions that are executed on
Karachi Automated Trading System
(KATS) 2.5%

Corporate Social
Responsibilities:
Monetary donation(s) as percentage
of after tax profit disclosed in the
annual accounts (minimum 1% of
after tax profit will qualify for full
marks) 2.5%
 Transparency & Investors 2.5%
Relation:
- Updated website is maintained by
the company where information
regarding the management/Board of
Directors, Vision/Mission statement
and latest financials are available
2.5%

 Announcement of half-yearly 5%
result within one month 5%
 - Holding of Board Meeting 5%
for the consideration of
accounts within one month
of the close of financial year
 - Holding of AGM within 3 5%
months of year-end
 - Early despatch of 5%
dividend/bonus shares
within 10 days instead of the
requirement of 30 days 5%
Profitability: 25%

Free-Float of 7.5%
Shares
Turnover of 2.5%
Shares:

Corporate 2.5%
Social
Responsibilitie
s:
Transparency 2.5%
& Investors
Relation:
Announcemen 15%
t
Board Meeting
AGM within 3

The company which follow above criteria are considered top companies.