Padma Oil profit jumps 45pc, on high demand for fuel oil

The state-run Padma Oil Company's profit jumped 45 per cent year-on-year to Tk 3.50 billion in FY23, riding on an increase in the sales of petroleum products and higher non-operating income.

As a result, the largest oil marketing entity's earnings per share soared to Tk 35.58 in FY23, from Tk 24.47 a year ago, according to a stock exchange filing on Wednesday.

Sales had a boost as the demand for fuel oil rose amid power outages during the period, said an official of the company requesting not to be named since he is not authorized to talk to the media.

"Interest income rose during the year, as banks were offering a higher deposit rate. It helped us log higher profits."

The company declared 135 per cent cash dividend for FY23, the highest since its listing on the stock exchanges.

Padma Oil's annual sales revenue surged also because the prices of diesel and kerosene were raised by 42.5 per cent in August last year. At the same time, petrol became 51.16 per cent costlier, while octane 51.68 per cent.

Although the company has yet to disclose the annual sales figures, its nine months' sales soared 10 per cent year-on-year to Tk 1.97 billion through March this year.

The non-operating income jumped 23 per cent year-on-year to Tk 2.44 billion in the nine months to March.

The net operating cash flow per share was Tk 51.99 in the negative for FY23, against Tk 98.15 for the previous year, for higher payment to suppliers.

The net asset value per share improved to Tk 203.46 from Tk 180.38 due to increased profitability.

The final approval of the dividend will come at the annual general meeting (AGM) scheduled to be held on January 6 next year. The record date for entitlement of dividend is November 28 this year.

The company's profit in the first quarter of FY24 also escalated 28 per cent year-on-year to Tk 908 million for higher non-operating income from bank deposits.

Padma Oil Company, a subsidiary of Bangladesh Petroleum Corporation (BPC), is the largest and oldest oil company engaged in procurement, storage, and marketing of petroleum products, lubricants, greases, bitumen, LPG and agro-chemicals.

It has more than 36 per cent share in the country's fuel oil market, making it the number one among oil marketing companies in Bangladesh.

In recent years, the company moved to make LPG more available as a primary fuel source for vehicles in Bangladesh as part of the government's efforts to increase LPG consumption in the country in the face of fast depletion of the natural gas reserves.

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