Emerald Oil makes a comeback, with 329pc profit growth
It increases capacity utilisation to 50pc in FY23 from 23pc in FY22
Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
Emerald Oil Industries gained a 329 per cent growth in profit in FY23, compared to the previous fiscal year, backed by a 27 per cent more use of production capacity.
The producer of rice bran oil 'Spondon' made a profit of Tk 43.59 million in FY23.
The company resumed its commercial production in January last year after remaining shut for more than four years.
After the return to operation, it could utilise only 23 per cent of the production capacity in FY22. Later, the capacity utilisation was raised to 50 per cent in FY23, which supported the steep growth in profit.
The company earlier reported losses between Tk 36.23 million and Tk 117.65 million for FY18-FY21.
The capacity usage jumped as Minori Bangladesh, a subsidiary of Japanese farming company Minori Company, acquired it last year.
Before Minori took over the company, the securities regulator restructured the company's board in 2021 by appointing independent directors.
Meanwhile, the company claimed that it ensured 100 per cent utilisation of its production capacity in the first quarter through September (Q1) of this year, according to an earnings disclosure.
It saw a 568 per cent year-on-year growth in profit in Q1.
The rise in profit dragged up the net asset value (NAV) for FY23.
The NAV per share rose to Tk 10.37 in the negative for FY23 from Tk 12.85 in the negative for the previous fiscal year.
Meanwhile, the company's board of directors has recommended 10 per cent cash dividend, including a 5 per cent interim cash dividend, for FY23.
The company's share price jumped from February 2 and exhibited almost a straight upward trend until July 12. The stock price multiplied six times to peak at Tk 182.50 on February 2.
The price fell to Tk 131.10 by Thursday on the Dhaka Stock Exchange (DSE).