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Listed power companies see EPS growth in 9 months

Doreen Power sees highest 53pc growth, KPCL falls


| Updated: May 18, 2022 09:59:29


Listed power companies see EPS growth in 9 months

Leading listed power generation companies in the private sector saw their profit rise in nine months for the current fiscal year riding on significant revenue income from their subsidiaries.

Out of the 23 companies listed in the 'fuel & power' sector with the Dhaka Stock Exchange, nine are engaged in power generation owned by private sector people.

Of them, five logged higher profits, three registered lower profits and one fell for July 2021 to March 2022, compared to the same period a year earlier, according to statistics available with the DSE.

Significant increase of revenue from their subsidiaries coupled with corporate tax rate cut continued to help the leading power generation companies to make good profits, market insiders said.

The consolidated earnings per share (EPS) of Doreen Power Generations, Shahjibazar Power Generation, United Power Generation & Distribution Company, Baraka Power and Baraka Patenga Power increased during the period under review.

The consolidated EPS of Summit Power, GBB Power, Energypac Power and Khulna Power Company fell during July 2021 to March 2022.

Of the power companies, consolidated EPS of Doreen Power rose by 53.15 per cent to Tk 8.24 for July 2021 to March 2022, from Tk 5.38 in the same period a year earlier.

The company has attributed the EPS rise to significant increase in revenue from two subsidiaries - Dhaka Northern Power Generations (DNPGL) and Dhaka Southern Power Generations (DSPGL).

Besides, revenue and net profit came from another subsidiary--Chandpur Power Generations, also contributed to higher profit, it said.

Chandpur Power is a 115 MW heavy fuel oil (HFO) based power plant at Chandpur, which started commercial operation from February 11 of this year. Doreen Power has a 99.9 per cent stake in the Chandpur Power Plant.

Shahjibazar Power's consolidated EPS also increased by 25.82 per cent to Tk 5.70 for the July 2021 to March 2022, compared to the same period last year.

United Power's consolidated EPS also jumped 16.92 per cent to Tk 17.34 for the July 2021 to March 2022, compared to the same period of the previous year.

Company officials said earnings have increased due to significant increase in revenue from their subsidiaries.

Baraka Power's consolidated EPS rose by 16.05 per cent to Tk 2.53 for the July 2021 to March 2022, due to higher-income from associate companies.

Another power company of the Baraka Group, Baraka Patenga Power's consolidated EPS also rose 8.90 per cent to Tk 3.18 for the July 2021 to March 2022 compared to the same period of the previous year.

Summit Power's EPS fell by 31.82 per cent to Tk 2.85 for July 2021 to March 2022, compared to the same period last year because of no operation of Madanganj Power Plant (Unit 1), a 102-MW HFO-fired power plant due to expiry of power purchase agreement (PPA).

However, Summit Power has recently informed that the government has approved power purchase agreement for two years of the said plant on 'No electricity, No Payment' basis.

GBB Power's EPS also dropped 23.68 per cent year-on-year to Tk 0.87 for the July 2021 to March 2022 as the cost of goods sold increased due to completion of partial E-50 overhauling and major alternator rotor rewinding and repair works.

Energypac Power's EPS also fell marginally by 5.75 per cent to Tk 1.31 for the July 2021 to March 2022 compared to the same period of the previous year.

Khulna Power incurred a loss of Tk 0.24 per share for the July 2021 to March 2022 as against profit of Tk 2.65 in the same period of the previous year as its two power plants --KPC 40MW Noapara Plant and KPC Unit II 115 MW plant shut down as power purchase agreement (PPA) expired.

However, recently the government has approved power purchase agreement for two years of these plants on 'No electricity, No payment' basis.

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