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Private power producers reliant on imported fuel as raw material experienced a sharp reduction in profit in FY23, compared to the previous fiscal year, as the taka continued to lose value against the dollar.
Three out of six electricity generators that disclosed earnings for FY23 on Sunday reported a decline in profit, while two other firms went in the red for the first time.
Only one firm that uses local gas as raw material showed an increase in profit.
All the organisations, which saw profit fall or endured loss, put the blame on the rising currency exchange rate.
United Power Generation
United Power Generation & Distribution Company, a major player among the private sector power producers, showed a 20% year-on-year drop in profit in FY23.
The board recommended providing 80% cash dividend to shareholders, the lowest since the company's listing in 2015.
The deputy company secretary of United Power, Elias Howlader said the strengthening of the dollar had eaten up most of the expected earnings of the year.
The company's earnings per share stood at Tk 13.81 for FY23, down from Tk 17.21 for the previous fiscal year, according to a stock exchange filing on Sunday.
While the exchange rate kept rising, bank borrowings were made costlier to tame inflation.
The company reported a net operating cash flow per share (NOCFPS) of Tk 19.40 for FY23, which was only Tk 1.89 for the previous fiscal year.
According to the company, the consolidated net operating cash flows per Share jumped as a result of higher collection from customers during the reporting period (July 2022 to June 30, 2023) compared to the same period last year.
The NAV per share came down to Tk 53.22 for FY23 from Tk 56.38 reported for the previous fiscal year.
Meanwhile, the stock has remained unmoved at the floor price of Tk 233.70 on the Dhaka Stock Exchange (DSE) since November 10 last year.
Khulna Power Company
It reported negative earnings for the first time since listing in 2010.
It incurred a loss of Tk 663.68 million in FY23, as opposed to a profit of Tk 13.06 million in FY22.
According to the company, it sold a plant with 110MW capacity in FY23 at a price lower than what was recorded on books. Hence, the price gap was adjusted with the earnings.
Besides, it had to keep operation shut for more than a year for the government cancelled its power purchase deal with the company. The firm also stopped receiving capacity charge.
Moreover, finance cost jumped due to delayed payments by Bangladesh Power Development Board (BPDB).
The company, however, declared 10% cash dividend for shareholders as much as it provided for the year before.
Its loss per share stood at Tk 1.67 for FY23, against a profit of Tk 0.03 for the previous fiscal year, according to a stock exchange filing.
The company reported a negative net operating cash flow per share (NOCFPS) of Tk 4.40 for FY23, which was Tk 2.01 for the previous fiscal year.
According to the company, NOCFPS became negative mainly due to cash purchase of fuel from Bangladesh Petroleum Corporation (BPC) but delayed receipts of payments from the BPDB.
The NAV per share came down to Tk 19.19 for FY23 from Tk 21.73 reported for the previous fiscal year.
Shahjibazar Power
Another fuel-based power producer Shahjibazar Power Co. saw its profit plunge by 63% year-on-year in FY23.
It also cited higher cost on raw material due to the rising exchange rate as the reason for the profit decline.
The firm has declared 11% cash dividend, the lowest since listing in 2014.
Baraka Patenga Power
Baraka Patenga Power Limited (BPPL) endured a loss for first time after listing in 2021.
The company pointed out foreign exchange loss of subsidiary companies and in its own procurement of fuel and spare parts amid exchange rate fluctuations.
It has declared 5% cash dividend, the lowest since 2021 listing.
Baraka Power
Baraka Power Limited (BARKAPOWER), another fuel-based power producer, showed 74% reduction in profit in FY23 over FY22.
It declared 5% cash dividend, lowest since listing in 2011.
GBB Power
Gas-based electricity producer GBB Power disclosed a 9% increase in profit in FY23, compared to the previous year.
"We don't import fuel. Hence, escalation of the exchange rate didn't impact us," said company secretary Mohammad Sattar Hossain.
The company declared only 2% cash dividend, the lowest since the 2012 listing, despite the profit growth.