Meghna Petroleum, a subsidiary of Bangladesh Petroleum Corporation, has signed an agreement with JMI Industrial Gas Ltd as part of business expansion.
Under the agreement, the petroleum company will sell LPG by establishing LPG (Auto gas) refueling station and liquefied petroleum gas (LPG) conversion workshop parallel with the sale of refueling oil through the company’s registered filling stations.
The Meghna Petroleum will receive royalty of Tk 0.50 against per liter sale of LPG, according to a disclosure posted on the Dhaka Stock Exchange (DSE) website on Sunday.
The signing ceremony took place at the Dhaka office of Meghna Petroleum at Meghna Bhaban on Saturday evening, according to a press release.
Mir Saifullah-Al-Khaled, managing director of Meghna Petroleum and Md Abdur Razzaq, managing director of JMI Group signed the agreement on behalf of their respective companies.
Md Abdur Razzaq said autogas gas is already a popular and admired fuel solution across the world for being energy efficient and environment friendly. This agreement will ensure rapid penetration of Auto LPG for use in automobiles across the country.
“We have already established a strong network for LPG supply across the country. Through signing the contract, we can now provide LPG to the customers at low cost and easily by using the Meghna Petroleum’s filling stations,” said Mr Razzaq.
Mir Saifullah-Al-Khaled, managing director of Meghna Petroleum said, from now on, JMI Industrial Gas will be able to install LPG pumps and sell Autogas at the registered filling stations of Meghna Petroleum.
Recently, Meghna Petroleum has also signed similar agreements with four companies -- Beximco LPG Unit-1, Bashundhara LP Gas, Omera Gas One and Unitex LP Gas as part of its business expansion by selling LPG through its registered filling stations.
The Meghna Petroleum, a statutory organisation under the power, energy and mineral resources ministry, has stepped forward to make LPG more available as a primary fuel source for vehicles in Bangladesh.
The move comes as part of the government’s ongoing efforts to increase LPG consumption in the country, where reserves of natural gas are depleting rapidly.
Each share of the Meghna Petroleum, which was listed on the Dhaka bourse in 2007, closed at Tk 203.60 on Sunday, gaining 0.54 per cent over the previous day.
Its shares traded between Tk 119 and Tk 210 in the last one year.
The company’s earnings per share (EPS) stood at Tk 19.72 in nine months for July, 2019 to March, 2020, which was Tk 21.53 in the same period of the previous year.
The company disbursed 150 per cent cash dividend in 2019.
The company’s paid-up capital is Tk 1.08 billion and authorised capital is Tk 4.0 billion while the total number of securities is 108.21 million.
The government owns 58.67 per cent stake in the company, while the institutional investors own 30.28 per cent, foreign investors 0.56 per cent and the general public 10.49 per cent as on July 31, 2020, the DSE data shows.