Eastern Lubricants sees 74pc surge in profit

Eastern Lubricants Blenders saw its profit jump 74 per cent year-on-year to Tk 68.53 million for FY'25, driven by higher sales of base oil and a significant boost in non-operating income.

The state-run company's earnings per share (EPS) for FY'25 stood at Tk 43.18, up from Tk 24.82 in the previous fiscal year, according to price-sensitive information published on Thursday.

The profit rose on the back of an increase in sales of base oil and a substantial surge in non-operating income from bank deposits, the company said in its earnings note.

The strong financial performance led the company to declare an 80 per cent cash dividend and a 50 per cent stock dividend for FY'25, marking an increase from the previous year's distribution of 80 per cent cash and 10 per cent stock dividends.

With the cash dividend, the investors will get Tk 8 per share as against an income of Tk 43.18 per share, meaning the company will retain a large portion of its profit.

This is not a new trend perceived only in FY25. The state-owned oil and petroleum marketing companies heavily rely upon income generated beyond their business operations to maintain their profit growth.

The state-run fuel marketing companies have huge amounts of bank deposits (FDRs) and they earned significant income from such investments.

The Eastern Lubricants has yet to publish detailed annual financial data for FY'25.

Its net sales for the nine-month period through March this year rose 40 per cent year-on-year to Tk 519 million.

The company's non-operating income rose 32 per cent to Tk 41 million in the nine months owing to rising interest rates.

The company's profits outside their core business had stayed high because they had not distributed enough cash dividends and retained profit.

The company fixed the date for its annual general meeting on January 31, 2026 and the record date for entitlement of dividend is December 22.

Its stock price dropped 4.71 per cent to Tk 2482.6 per share on the Dhaka Stock Exchange (DSE) on Thursday.

Business performance in the Q1 of FY26

Eastern Lubricants' profit for July-September quarter of FY'26 also jumped 181 per cent year-on-year to Tk 24.88 million, riding on higher sales.

Its revenue also surged 661 per cent year-on-year to Tk 248 million during this period, compared to Tk 32.57 million in the same quarter last year.

In July this year, Eastern Lubricants signed a business deal with Rock Energy Limited (REL), an authorised distributor of Castrol Lubricants, to work together and cooperate each other in selling and distributing 'Castrol Lubricants' in the public sector, which enhanced the revenue growth.

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